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http://www.archive.org/details/cityforpeopleormOOparsiala 


The  City  for  the  PeopTe 


OR 


THE  MUNIGlPflLlZflTION  OF  THE  GITY  GOVERNMENT 
ilND  OF  LOGflL  FRANCHISES 


BY 


FRANK    PARSONS 


Lecturer  in  Boston  I'DiTersitv  Law  School ;  Member  Boston  Bar ;  Author  of  Parsonn'  Edition  of  Morse  on  Banks 
aud  Banking;  Kditor  of  May  on  Insurance,  Perry  on  Trusts,  and  other  legal  works;  Professor  of  His- 
tory and  Political  Science,  and  Deau  of  Extension  Lecture  Department  College  of  Social  Science; 
President  Katioaal  Leai;ue  for  Promoting  Public  OiTuership  of  .Monopolies  ;   Member 
International  Co-Operatlre  Union,  American  Social   Science  Association,  and 
National  Institute  of  Art,  Science  and  Letters;  Author  of  **  The  World's 
Best  Books,"    "  The  Power  of  the  Ideal,"    "  The  New  Political 
Economy,'    "The   Telegraph    Monopoly"    Chapters    in 
Municipal  Monopolies  '  of  the  Ely  Economic 
Series,  etc.,  etc. 


No  Copyright. 


On  the  contrary,  an  invitation  is  e.\tended  to  all  to  do  their  utmost 
in  every  way  to  spread  the  truths  contained  In  the  following  pages. 
Newspapers  and  magazines  are  at  liberty  to  quote  as  freely  as  they  will, 
due  credit  only  being  askt. 


PUBLISH!   BY 

C.    F.   TAYLOR 
1520  Chestnut  Street,  Philadelphia,  pa. 

L      ■'''■ 


Lan-  • 

guage  is 
a  growth  rather 
than  a  creation.    The 
growth  in  our  vocabulary 
is  seen  in  the  vast  increase  in  size 
of  our  dictionaries  during  the  past  cen- 
tury.   This  growth  is  not  only  in  amount,  but 
among  other  elements  of  growth  the  written  forms 
of  wortjs  are  becoming  simpler  and  more  uniform.    For 
example,  compare  English  spelling  of  a  century  or  two  cen- 
turies ago  with  that  of  to-day !    It  is  our  duty  to  encourage  and  ad- 
vance the  movement  toward  simple,  uniform  and  rational  spelling.    See  the 
recommendations  of  the  Philological  Society  of  London,  and  of  the  American 
Philological  ."Association,  and  list  of  amended  spellings,   publisht    in    the   Century 
Dictionary  (following  the  letter  z),  and  also  in  the  Standard  Dictionary,  Webster's  Dic- 
tionary, and  other  authoritative  works  on  language.    The  tendency  is  to  drop  silent  letters  in 
some  of  the  most  flagrant  instances,  as  ugh  from  though,  etc.,  change  ed  to  t  in  most  places  where 
so  pronounced  (where  it  does  not  affect  the  preceding  sound),  etc. 

The  Nationar Educational  Association,  consisting  of  ten  thousand  teachers,  recom- 
mend the  following: 

"At  a  meeting  of  the  Board  of  Directors  of  the  N.  E.  A.  held  in  Washington,  D.  C, 
•  J"'y7i  1898,  the  action  of  the  Department  of  Superintendence  was  approved,  and  the  list 
of  words  with  simplified  spelling  adopted  for  use  in  all  publications  of  the  N.  E.  A. 
as  follows : 

tho  (though);  program  (programme); 

altho  (although);  catalog  (catalogue); 

thoro  (thorough);  prolog  (prologue); 

thorofare  (thoroughfare);  decalog  (decalogue); 

thru  (through);  demagog  (demagogue); 

thruout  (throughout);  pedagog  (pedagogue); 

"You  are  invited  to  extend  notice  of  this  action  and  to  join  in  securing  the  general 

adoption  of  the  suggested  amendments.— IRWIN  SHEPARD,  Sec'y." 

The  publisher  of  this  Series  feels  it  a  duty  to  recognize 

the  above  tendency,  and  to  adopt  it  in  a 

reasonable  degree. 


PREFATORY  NOTE. 


The  people  of  this  country  have  been  very  slov?  to  appreciate 
the  value  of  public  franchises.  The  shrewd  capitalist  has  been 
quick  to  note  the  rapidly  growing  values  and  the  great  possibilities 
in  this  direction,  and  he  has  also  been  alert  to  get  the  aid  of  poli- 
ticians in  securing  privileges  that  should  belong  only  to  the  general 
publio.  The  rapid  building  up  of  private  fortunes  in  this  way  has 
at  last  opened  the  eyes  of  many  communities  regarding  the  im- 
portance of  public  ownership  of  public  utilities,  such  as  water,  gas, 
electrical  lights,  street  railways,  etc.,  of  cities  and  towns.  During 
the  winter  and  early  spring  of  1897  I  began  to  notice  that  certain 
towns  in  some  of  the  States  were  anxious  to  own  and  operate  their 
water  works  or  gas  works,  but  that  they  were  required  to  first 
obtain  permission  from  the  Legislature.  I  at  once  realized  that 
the  most  important  thing  to  do  in  aid  of  the  cause  of  Public 
Ownership  of  Public  Utilities  was  to  learn  to  what  extent  muni- 
cipalities are  in  bondage  to  the  Legislature  in  the  various  States,. 
and  to  show  the  importance  of  obtaining  municipal  freedom  as  the 
first  step. 

As  my  friend,  Prof.  Frank  Parsons,  of  the  Law  Department  ot 
the  Boston  University,  had  already  given  extensive  study  to  muni- 
cipal problems,  I  wrote  to  him  asking  if  he  could  undertake  the 
task  of  examining  the  Constitntion  and  Statute  Laws  of  each  State 
in  reference  to  the  rights  and  privileges  of  cities  and  towns.  My 
plan  was  to  have  this  information  tabulated,  one  table  showing  the 
constitutional  bearings,  and  the  other  table  showing  the  statutory 
bearings  upon  this  question,  preceded  by  introductory  t«xt  and 
followed  by  explanatory  text.  I  hoped  thus  to  get  the  wnoie  ques- 
tion in  this  condensed  form  into  the  limits  of  a  magazine  article. 
The  task  was  a  great  one,  but  finally  the  Professor  consented  to 
undertake  it,  with  suitable  assistants  under  his  direction.  The 
work  was  necessarily  slow^,  and  waiting  for  the  latest  Acts  of  the 
Legislatures  still  further  retarded  the  work.     As  the  work  grew. 


the  Professor  despaired  of  getting  the  results  into  the  limits  of  a 
magazine  article.  In  the  meantime  I  had  planned  a  series  of 
volumes,  to  be  called  "Equity  Series,"  to  deal  with  leading  public 
questions.  In  the  early  autumn  of  1898,  after  mature  considera- 
tion, the  Professor  and  I  concluded  to  incorporate  this  subject 
in  one  of  the  volumes  of  "Equity  Series,"  along  with  other  chapters 
dealing  with  other  basic  and  vital  municipal  problems.  This 
volume  is  the  result. 

Municipal  government  is  the  problem  of  the  age.  It  touches  us 
in  our  daily  lives  a  dozen  or  a  score  of  times  while  the  State  or 
National  government  touches  us  once.  The  condition  of  the  water 
we  drink  and  with  which  our  food  is  cooked,  the  condition  of  the 
air  we  breathe,  and  of  the  streets  upon  which  we  walk  or  ride, 
is  determined  largely  or  entirely  by  our  local  govei-nment;  and 
also  the  public  order,  public  education,  public  conveyance  of  all 
kinds,  and  other  important  matters  too  numerous  to  mention,  are 
determined  by  our  local  government.    Let  us  learn  to  solve  our  local 

jproblems  well,  and  in  the  interest  of  all. 

C.  F.  TAYLOR. 

J'hiladelphia. 


AUTHOR'S  PREFACE. 


The  city  is  tlie  condensation  of  the  ages;  the  aggregation  of  all 
that  is  best  in  civilization,  and  all  that  is  worst  in  the  remnants 
of  barbarism.  The  rapid  growth  of  our  cities  and  the  monopoly 
of  their  advantages  by  a  few  political  and  industrial  schemers,  are 
among  the  most  vital  facts  of  the  time.  The  citizen  sovereigns 
of  America  dealing  with  city  life  are  confronted  with  questions  like 
these: — Shall  the  People's  cities  be  given  over  to  syndicates  and 
corporations?  Shall  five  hundred  thousand  or  a  million  people 
build  costlj'  streets  and  then  give  them  to  gas  and  electric  trusts, 
and  street  railwaj-  companies  for  the  private  profit  of  a  few  indi- 
viduals? Shall  other  cities  and  towns  all  over  the  State,  or  their 
Representatives  in  the  Legislature,  have  more  to  say  about  the 
management  of  this  city's  local  business  affairs 

than  its  own  people  have?     Shall  Councils  have 

Shall    the    people  ^ 

own  the  city  and  its  power  to  govern  the  city  against  the  people's 

government  or  shall  ^                     ^                              jo                       r-     r- 

they    be   owned   by  will    or   only   in   accordance   with   the   people's 
the    politicians    and 

monopolists?  ^in — shall  they  have  power  to  legislate  in  spite 

of  the  people's  protest,  and  to  refuse  legisla- 
tion in  spite  of  the  people's  demand?  Shall  the  spoils  system  con- 
trol appointments  to  the  great  confusion  and  inefficiencj'  of  the 
service?  Shall  rings  and  bosses,  machines  and  lobbyists,  corpora- 
tions and  monopolists  continue  to  have  large  influence  in  municipal 
government?  And  if  all  these  things  are  not  to  be  allowed,  then 
by  what  means  may  thej^  be  prevented? 

This  book  is  an  attempt  to  answer  some  of  these  questions,  and 
the  chapters  that  deal  with  municipal  liberty,  public  ownership, 
and  direct  legislation,  outline  some  of  the  principal  means  by  which 
a  citj'  may  become  a  city  for  the  People  and  not  for  the  Politicians 

and  Monopolists.  Civil  service  reform,  propor- 
j,J2^^'«*ons    of    the     ^j^jjjjj    representation,  the    electric    ballot  and 

the  English  corrupt  practices  act,  are  treated 
more  briefly  afterward,  and  flnally  statutes,  charter  provisions,  and 


constitutional  amendments  are  given  in  full  for  the  three  leading 
movements.  In  the  prelude  all  parts  of  the  book  are  co-ordinated 
by  a  discussion  of  the  fundamental  facts  and  principles  on  which 
the  main  thought  of  the  book  is  based. 

The  volume  was  begun  at  the  request  of  Dr.  Taylor;  its  general 
plan  is  substantially  the  one  proposed  by  him,  and  in  the  Avork- 
ing  out  of  the  plan  his  criticisms  and  suggestions  have  been  of  the 
greatest  value.  Some  repetition  has  resulted  from  the  effort  to  do 
justice  to  each  topic  in  its  turn,  but  we  think  the  reader  will  find 
this  method  very  favorable  to  a  thoro  grasp  of  the  subjects  treated. 

FRANK  PAESONS. 
BoBTOir. 


PRELUDE. 


The  problem  of  the  citj-  is  the  problem  of  civilization.  In  1790 
only  l-30th  of  the  people  of  the  United  States  lived  in  cities;  in 
1890  about  one  third  of  our  population  lived  in  cities  of  eight  or 
more  thousand  inhabitants.^  That  is,  we  must  multiply  the  ratio 
of  1750  by  ten  in  order  to  get  the  ratio  of  1890.  An  equal  move- 
ment for  another  hundred  years  would  make  the  city  population 
three  times  as  large  as  the  total  population  of  the  country.  The 
growth  of  cities  will  probably  stop  short  of  that  predicament,  but 
the  stampede  from  the  country  promises  to  continue  in  the  next  de- 
cade, at  least,  with  undiminished  and  probably  accelerated  vigor. 

Automobiles,  motor  bicycles  and  possibly  flj'ing  machines,  with 
paper  mache,  liquid  air  engines,  will  make  it  easy  to  travel  fifty 
or  sixty  miles  an  hour  in  your  own  convejance.  No  respectable 
family  will  be  without  its  automobile  or  flying  machine,  and  motor 
bicycles  will  be  as  thick  as  mosquitoes  on  the  Jersey  coast.  The 
country  will  be  covered  with  a  network  of  magnificent  highways, 


^  One  of  the  most  momentons  and  expressive  movements  in  modern 
history  is  the  persistent,  restiess,  and  marvelously  rapid  absorption  of 
he  rurai  population  into  city  life.  Read  carefully  the  census  records  and 
then  let  imagination  carry  you  into  the  future: 

Proportion  of  Populaiion  of  V.  8.  living  in  Cities  over  8,000i 

Fraction  of  Percentage  of 

Vear.  total  pop.  total  pop. 

1790  1  /30 3.35 

1800  1/25 4. 

1810  1/20 5. 

1820  1/20 5. 

1830  1/16 6.5 

1840  1  /12 8. 

1850  1/8  12. 

1860  1/6  17. 

1870  1/5  20. 

1880  1/4  22.5 

1890  1/3  29.2 

The  record  Indicates  that  more  than  a  third  of  our  people  now  live  In 
cities,  and  doubtless  half  the  population  will  soon  be  urban.  If  towns  are 
included  the  really  rural  population  is  already  a  minor  and  rapidly  dimin- 
ishing fraction.  In  Scotland  the  rural  population  is  diminishing  absolutely 
as  well  as  relatively— being  only  928,500  out  of  a  total  of  4,000,000  in  1891. 
But  the  most  astonishing  and  thought  compelling  facts  of  ail  in  this  relation 
are  those  that  concern  the  growth  of  some  of  our  largest  cities.  I  Insert 
a  couple  of  hints: 

Population  of  Chicago.  Poimliiiion  o:  New  York. 

1840    4,500  1800 60,000 

1880    503,185  1880 1.206.299 

1890    1,099,850  1890 1,515,301 

1898    1,800,000  ■     1898 2,000,000 

Greater  New  York 1898 3,549,000 

The  figures  for  1898  are  estimates  based  on  state  census  returns  since  1890. 
The  school   census  of  1892  gave   New   York   1,800,000,    so   that  2,000,000   for 


8 


PKELUDE. 


broad  and  smooth,  and  lined  with  beautiful  trees,  and  the  farmer 
can  live  in  the  city  or  near  it  and  go  to  his  fields  every  morning 
and  back  at  night  on  his  own  automobile  or  liquid  air  bicycle. 

Invention  is  building  the  cities  in  another  way.  Modern  machinery 
enables  four  men  to  plant,  raise,  harvest,  mill  and  deliver  to  the 
bakers  flour  enough  to  feed  a  thousand  men  one  year,  and  the  end 
is  not  vet.  Electricity  is  coming  to  the  farmer's  help.  It  is  found 
that  electrifying  the  seeds  will  increase  the  yield  50  per  cent.; 
electrifying  the  atmosphere  increases  the  crop  70  per  cent.; 
electrifying  the  ground  has  increased  the  product  300  per  cent. 
Why  not  electrify  all  three?  Why  not  electrify  the  hired  man  and 
the' hired  girl?  If  we  get  this  system  into  general  use  and  elec- 
trify the  seeds  and  the  ground  and  the  atmosphere,  and  then  go 
further  and  electrify  the  hired  man  and  the  hired  girl— by  giving 
every  youth  a  thorough  practical  education,  making  every  worker 
a  partner  in  the  business  and  cultivating  a  true  civic  patriotism 


1898  is  probably  below  the  truth.  Greater  New  York  does  not  include  Jersey 
City,  which  has  a  population  of  more  than  500,(m^wherefore  the  whole 
city  at  the  mouth  of  the  Hudson  numbers  over  4,000,000,  a  growth  of  50 
fold  or  more  In  a  century.  Chicago  appears  to  double  itself  in  about  lu 
years.  It  Increased  250  fold  In  50  years  and  promises  a  jecord  of  over 
700  fold  in  a  century  if  Its  present  rate  of  development  continues  till  l^u. 

Since  the  above  was  written  and  put  in  type  Columbia  Unn-ersity  nas 
published  a  500  page  book,  by  Dr.  A.  P.  Weber,  about  the  Growth  of 
Cities"  all  over  the  world  and  some  of  the  facts  are  of  so  much  interest 
In  this  connection  that  I  condense  a  few  of  them  in  the  following  paragrapU: 

In  the  whole  United  States  210,873  people  lived  in  6  cities  in  1800, 
whereas  18,284,385  lived  in  448  cities  in  1890.  While  the  population  of  the 
whole  country  has  increased  12  fold  in  this  century,  the  urban  population 
has  increased  87  fold.  The  rapid  increase  began  with  the  era  of  canals 
in  1820,  and  swelled  in  the  thirties  and  forties  with  the  advent  and  devel- 
opment of  railroads.  The  decade  ending  1850  lacked  but  1  per  cent,  of 
doubling  the  city  population.  In  the  fifties  the  gain  was  75  per  cent.,  in 
the  sixties  59  per  cent,  in  the  seventies  40  per  cent,  in  the  eighties  61  per 
cent.  From  1880  to  1890  our  manufactures  grew  enormously,  the  capital, 
number  of  employees,  and  net  value  of  product  increasing  100  per  cent. 
over  the  preceding  decade,  and  with  this  growth  the  number  of  towns  and 
cities  of  8,000  population  or  more  rose  from  286  to  448,  with  a  lift  of  pop- 
ulation from  11,318,547  to  18,284,385  persons.  One-half  the  urban  population 
of  the  United  States  is  in  the  North  Atlantic  States  and  four-fifths  in  the 
territory  north  of  the  Ohio  and  Missouri  rivers.  In  Massachusetts,  Rhode 
Island,  New  York  and  New  Jersey  more  than  half  the  people  live  in  cities, 
and  twelve  other  states  have  more  than  a  quarter  of  their  inhabitants  lu 
cities.  Dr.  Weber  gives  the  following  table  to  show  the  growth  of  cities 
in  the  United  States.  He  begins  with  cities  of  10,000  population  instead  of 
with  cities  of  8,000  as  in  my  table  at  the  beginning  of  this  note. 


aat$et  0/  OUiet. 

No. 

1800 
Population. 

No. 

1850                 1 
Population. 

No. 

1890 
Population. 

100,000-;- - 

6 

24 
86 

1,393,338 
878,342 
495,190 

28 
137 
180 

9,697,960 
5.202,007 
2  380110 

20  000 — 100,000 

'  s 

201,416 

10  000—  20,000 

Total,  10,000-f 

5 

201,416 

66 

2,766,870 

345 

17,230.077 

Tn  this  country  28  per  cent,  of  the  people  live  in  cities  of  10,000  or  more 
Inhabitants;  24  per  cent,  in  cities  of  20,000  or  more,  and  15  per  cent,  in 
cities  of  100,000  or  more.  England  and  Wales  are  further  on  the  road— 
62  per  cent,  of  their  people  live  in  cities  of  10,000  or  more;  54  per  cent,  in 
cities  of  20,000  or  over;  and  32  per  cent.  In  cities  of  100,000  or  more. 
Scotland,  Belgium.  Netherlands,  Saxony,  Prussia  and  Australia  also  have 
a  larger  percentage  of  their  people  in  cities  than  we  have.  The  rate  of 
advance  is  so  great,  however,  with  us,  and  the  growth  of  business  and  in- 
vention so  enormous  that  the  United  States  may  verv  likely  overtake  the 
older  nations  in  the  march  of  city  development  as  it  has  in  so  many  other 
lines  of  development.  Massachusetts  already  has  66  per  cent,  of  its  "popula- 
tion in  cities  of  10,000  and  over. 


PRELUDE.  9 

and  lofty  ideal  of  devotion  to  individual  and  social  service, — if  we 
do  all  this  along  with  the  coming'  improvements  in  transportation 
the  time  will  come  when  1/100  of  the  people  can  do  the  entire  agri- 
cultural work  of  the  country,  and  even  they  can  enjo}-  the  advan- 
tages of  citj-  life,  so  that  the  ichole  population  will  be  substantially  ] 
urban.  '■ 

With  the  concentration  of  population  has  gone  the  concentration 
of  wealth.  A  hundred  years  ago  wealth  was  quite  evenlj-  distributed 
here.  Now  one-half  of  the  people  own  practically  nothing, — one- 
eighth  of  the  people  own  seven-eighths  of  the  wealth,  1  per  cent, 
of  the  people  own  50  per  cent,  of  the  wealth,  and  1  /200  of  1  per  cent, 
own  20  per  cent,  of  the  wealth,  or  4000  times  their  fair  share  on  the 
principles  of  partnership  and  brotherhood. 

A  hundred  years  ago  there  were  no  millionaires  in  the  country, 
now  there  are  more  than  4000  millionaires  and  multimillionaires, 
one  of  them  w-orth  over  200  millions,  and  the  billionaire  is  only 
a  question  of  a  few  j'ears  more!  Alreadj%  it  is  said,  we  have  a 
billion  dollar  trust;  hundreds  of  others  from  ten  millions  up,  and 
a  total  trust  and  combine  capitalization  in  the  neighborhood  of 
eight  or  ten  billions,  and  all  this  congestion  of  wealth  and  power 
is  centering  in  the  cities. 

The  problem  of  the  city  is  the  problem  of  the  future,  and  the 
problem  of  the  citj'  is  the  problem  of  monopoh".  Diffusion  is 
the  ideal  of  civilization — diffusion  of  wealth  and  power,  intelligence, 
culture  and  conscience.  Instead  of  this  we  have  private  monopoly  of 
wealth,  private  monopolj'  of  government,  private  monopoly  of 
education,  private  monopoly  even  of  morality  and  the  conditions 
of  its  production.  Combination,  integration,  union  are  most  ex- 
cellent if  their  benefits  are  justly  distributed — integration,  plus 
diffusion  or  union  for  the  good  of  all,  is  the  problem  of  the  20th 
century. 

We  shall  not  attempt  in  this  book  to  deal  with  the  whole  prob- 
lem of  diffusion.  The  case  of  The  People  vs.  Monopoly  is  too  big  for 
full  treatment  in  a  volume  of  this  size,  so  we  shall  confine  ourselves 
to  a  few  of  the  chief  institutional  aspects  of  the  movement  toward 
a  more  perfect  democracy  or  self-government  in  political  and  in- 
dustrial affairs,  private  monopoly  in  politics  and  industry  being 
the  central  and  most  threatening  evil  of  our  time. 

Self-government  is  the  basic  principle  of  our  institutional  juris- 
prudence, resting  upon  historic  and  philosophic  proof  that  justice 
and  liberty  demand  self-government,  and  that  the  management  of 
their  own  affairs  is  one  of  the  most  powerful  means  of  elevating 
and  educating  the  people. 

Free  institutions  are  institutions  that  embody  the  principle  of 
self-government,  and  the  freest  institutions  are  those  that  carrj' 
self-government  nearest  to  perfection,  reducing  to  a  minimum  all 
external  control.  So  fundamental  is  the  principle  of  self-govern- 
ment in  our  law  that  it  is  held  by  high  authority  to  be  inherent  in 
our  system  of  government,  underlying  and  permeating  our  consti- 
tutions and  rendering  void  all  legislation  in  conflict  with  it.  even  tho 


1 0  PKELUDE. 

such  legislation  may  not  be  objectionable  in  the  light  of  any  ex- 
press provision  of  the  constitution  under  which  it  is  enacted.' 

But  while  it  is  clear  that  free  institutions  must  be  founded 
on  self-government,  and  our  constitutions,  statutes  and  theories 
of  government  are  saturated  with  the  idea,  j'et  the  law  does  not 
apply  the  principle  consistently  thruout.  In  several  respects  the 
application  is  defective,  the  three  following  being  within  the  scope 
of  this  book: 

1.  As  to  areas.  The  law  recognizes  the  right  of  self-government 
in  respect  to  state  and  nation,  but  not  in  respect  to  cities.  Muni- 
cipal corporations  are  creatures  of  the  legislature.  They  have  only 
such  powers  as  are  given  to  them  by  the  legislature,  which  may,  at 
its  jjleasure,  abridge  or  annul  these  powers  and  privileges;  divide 
them  or  consolidate  two  or  more  of  them  into  one  withovit  their 
assent,  attach  a  condition  to  their  continued  existence  or  abolish 
them  completely. 

The  principle  of  self-government  requires  that  a  city  should  be 
as  free  and  independent  in  its  sphere  as  states  and  nations  are  in 
theirs.  A  state  has  no  more  right  to  impose  its  judgment  on  a 
city  in  respect  to  the  city's  internal  business  than  the  nation  has 
to  impose  its  judgment  on  a  state  in  regard  to  the  internal 
business  of  the  state.  The  true  rule  is  that  national  interests 
should  be  governed  by  the  nation;  the  state's  peculiar  interests  by 
the  state;  the  city's  special  interests  by  the  city,  and  the  indi- 
vidual's personal  interests  by  himself,  the  presumption  being 
always  with  the  lower  group  and  the  principle  of  decentralization. 
Individual  liberty  should  be  left  as  large  as  possible,  personal  free- 
dom being  curtailed  only  where  the  public  good  clearly  requires 
it.  In  the  field  of  public  action  as  much  as  possible  should  be  left 
to  the  cities  and  towns,  no  business  being  given  to  state  control  ex- 
cept such  as  the  clear  interests  of  the  state  require  to  be  so  placed; 
and  lastly,  no  powers  should  be  exercised  by  the  national  govern- 
ment except  such  as  are  necessary  for  purposes  and  interests  of 
national  moment. 

The  full  control  of  streets,  the  power  to  grant  or  withhold  street 
franchises  and  the  right  to  own  and  operate  local  public  utilities 
should  belong  to  each  city  secure  from  the  possibility  of  legisla- 
tive interference.  The  line  between  state  and  municipal  action 
should  be  drawn  in  each  state  constitution  as  carefully  as  the  line 
between  state  and  national  action  is  drawn  in  the  Federal  Consti- 
tution. A  limited  sphere  of  local  activity  should  be  clearly  marked 
off  and  deeded  to  local  self-government,  beyond  the  reach  of  the  leg- 
islature; and  outside  the  special  local  sphere  a  city  should  be  free 
to  act  as  it  may  see  fit,  so  long  as  it  does  not  violate  a  valid  law  of 
the  nation  or  state,  reversing  the  present  rule  and  making  a  city 
free  to  act  except  where  justly  prohibited,  instead  of  being  pro- 
hibited except  where  it  has  received  permission  to  act.     Another 


HnrlW^o.^^Mil^h^'  !S  ^l^^l^  ^^-  S^*''^"'  ^8  Mich.  228;    see  also  People  vs. 
US  K' 426.  •  ''^'  °^°°^'  "^  ^°*^-  ^^2:    Evansville  vs.   State, 


FRET-DDE. 

plan  would  be  to  follow  the  method  of  the  national  constitution, 
and  specifj'  in  the  constitution  of  the  state,  the  powers  to  be  ex- 
-ercised  by  the  leg'islature,  and  the  guarantees  to  be  observed  in 
respect  to  individual  liberty,  and  then  leave  the  whole  residual 
sovereignty  to  the  niunicipalities. 

Some  of  our  states  have  gone  far  toward  the  accomplishment  of 
Municipal  Home-Rule  by  constitutional  amendments  enabling  cities 
to  make  their  own  charters.  But  these  home-made  charters  are  still 
subject  to  legislative  control,  and  municipal  lihcrty  Avill  never  be 
complete  till  the  city  has  the  right  to  manage  its  local  business 
affairs  according  to  its  own  discretion. 

2.  As  to  departments  of  life.  The  law  declares  in  favor  of  securing 
self-government  in  political  affairs,  but  comparatively  little  effort 
is  made  to  obtain  self-government  in  industrial  affairs.  Yet  the 
ajjplication  of  the  principles  of  self-government  and  democracy 
is  just  as  necessary  to  liberty,  justice  and  development  in  the  latter 
■case  as  in  the  former.  Oppression  by  an  aristocracy  of  industrial 
monopolists  is  as  bad  as  oppression  by  an  aristocracy  of  political 
monopolists.  The  educating  and  elevating  effects  of  managing 
their  industrial  affairs  are  as  valuable  to  the  people  as  the  edu- 
cating and  elevating  effects  of  managing  their  political  affairs; 
in  fact,  some  of  the  most  developing  and  most  creditably  handled 
subjects  in  municipal  government  have  been  the  making  of  roads, 
managing  of  schools,  supply  of  water,  gas,  electric  light  and  other 
public  utilities.  An  important  proviso,  however,  must  not  be  over- 
looked. The  whole  body  of  people  affected  by  a  street  railway 
service,  for  example,  maj*  properly  decide  all  questions  relating  to 
it,  provided  they  have  first  acquired  in  an  equitable  way  the  right 
to  control  it,  and  not  otherwise.  This  makes  it  clear  that  we  can- 
not in  fairness  expect  a  large  measure  of  industrial  self-govern- 
ment under  existing  ownerships,  but  it  may  be  obtained  thru  pub- 
lic ownership  in'  the  case  of  monopolies,  and,  in  other  cases,  thru 
the  development  of  copartnership  and  voluntary  co-operation. 
Private  owners  who  are  public  spirited  or  even  intelligently  selfish 
will  open  the  door  to  labor-copartnership,  and  aid  the  growth  of 
co-operation  and  public  ownership,  and  may  even  confer  industrial 
suffrage  on  the  workers  as  a  gift  where  good  conditions  make 
immediate  emancipation  wise;  much  may  be  accomplished  also 
thru  the  efforts  of  the  workers  to  become  part  owners  thru  public 
ownership  and  co-operation;  but  the  main  dependence  must  be 
th6  growth  of  enlightened  public  sentiment  thruout  the  commun- 
ity, an  awakening  of  the  whole  people  to  a  realizing  sense  of  the 
justice  and  expediency  of  co-operative  industry  and  the  public 
ownershix)  of  jmblic  utilities. 

3.  As  to  methods.  The  principle  of  self-government,  even  when 
applied,  is  generally  very  imperfectly  carried  out.  We  have  not 
even  political  government  bj'  the  men  to  any  considerable  extent. 

In  cities  we  have  government  bj'^  councils. 
In  states  we  have  government  by  legislatures. 
In  the  nation  we  have  government  bj'  congress. 


12  PRELUDE. 

The  people  have  little  direct  efficient  control.  They  are  sov- 
ereign de  jure,  but  not  de  facto,  except  at  election  time.  The  actual 
power  exercised  by  the  people  consists  chiefly  in  the  periodic  choice 
of  a  new  set  of  masters,  who  can  make  laws  to  suit  themselves,  and 
enforce  them  till  their  term  is  up,  regardless  of  the  will  of  the 
jjeople.  We  are  governed  by  an  elective  aristoa-acy,  which,  in  its 
turn,  is  largely  controlled  by  an  aristocracy  of  wealth.  Behind 
the  legislatures  and  congresses  are  the  corporations  and  the  trusts; 
behind  the  machines,  the  rings  and  the  bosses,  are  the  business 
monopolies,  the  industrial  combinations  and  the  plutocrats;  be- 
hind the  political  monopolists  are  the  industrial  monopolists. 

The  principal  remedy  under  this  third  division  is  Direct  Legis- 
lation, which  is,  indeed,  of  vital  importance  under  every  division, 
because  it  opens  the  door  for  every  other  reform.  No  one  who 
really  believes  in  self-government  can  refuse  to  support  the  initia- 
tive and  referendum,  for  they  merely  enable  the  people  to  veto  laws 
they  don't  want  and  secure  laws  they  do  want,  i.  e.,  they  enable 
the  people  to  govern  themselves. 

Restating  in  brief  the  remedies  mentioned,  with  some  others 
closely  related  to  them,  we  have: 

1.  Home  rule  for  cities  in  local  affairs. 

2.  Direct  Legislation,  or  the  initiative  and  referendum,  with 
which  we  may  name  civil  service  reform,  proportional  representa- 
tion, preferential  voting,  the  electric  ballot,  equal  suffrage,  effici- 
ent corrupt  practices  acts  and  the  popular  recall,  all  of  which,  are 
necessary  in  order  that  the  people  may  really  own  and  operate 
the  government  under  conditions  most  likely  to  secure  wise  leg- 
islation and  honest,  intelligent  and  economical  administration. 

3.  Co-operative  business  and  public  ownership  of  industrial  mo- 
nopolies, remembering  that  government  ownership  of  industry  is 
not  public  ownership  of  it,  unless  the  people  own  the  government. 
Public  ownership  of  the  government  is  essential  to  real  public  own- 
ership of  industry,  and  public  ownership  of  government  involves 
Direct  Legislation  and  civil  service  reform,  wherefore  these  must 
be  a  part  of  every  thorough  and  reliable  plan  for  the  public  owner- 
ship of  industrial  monopolies.  On  the  other  hand,  an  advance  in 
public  industry,  or  even  in  government  ownership  of  industry, 
tends  to  aid  the  movement  toward  good  government  in  two  ways: 
First;  It  helps  to  do  away  with  the  private  corporations,  which 
are  probably  the  chief  corrupting  influence,  and  certainly  one  of 
the  leading  obstacles  to  good  government  in  our  cities  to-day;  and 
Second;  it  increases  the  importance  of  governmental  affairs  and 
intensifies  the  disasters  resulting  from  corruption,  partisanship 
and  the  spoils  system,  and  so  rouses  the  interest  of  the  citizens 
and  impels  them  to  demand  reforms  that  will  guarantee  pure  and 
efficient  management.  Wherefore,  except  under  specially  adverse 
circumstances,  sufficiently  powerful  to  overcome  the  effects  just 
named,  government  ownership  of  industrial  monopolies  tends  to- 
ward good  government  and  public  ownership  of  monopolies,  both 


PKELCDE.  13 

of  which  tend,  of  course,  to  the  diffusion  of  wealth  and  power  and 
the  realization  of  a  more  perfect  democracy. 

4.  To  push  all  these  and  other  reforms,  non-partisan  leagues 
should  be  formed  in  city,  state  and  nation,  to  educate  the  people, 
turn  on  the  light  in  dark  places,  give  the  facts  persistent  and 
judicious  emphasis,  permeate  all  parties  with  the  truth,  call  false 
officials  to  account,  sustain  men  who  do  their  duty  and  develop  a 
civic  conscience  that  will  make  every  public  service  a  sacred  trust.' 

In  education  lies  the  final  hope,  for  at  bottom  it  is  a  new  intelli- 
gence and  a  new  ideal,  that  must  be  relied  on  to  mould  the  real 
to  a  more  perfect  form.  Individual  development  forces  a  change 
in  the  laws,  then  better  institutions  help  to  develop  a  nobler  man- 
hood.    By  such  interaction  civilization  is  built  up. 


'  For  information  concerning  such  organizations  address  Samuel  B. 
Capen,  "Municipal  League,"  Boston;  Edwin  D.  Mead.  Prest.  "Twentieth 
Century  Club,"  Boston;  Dr.  Charles  B.  Spahr,  Prest.  "Social  Reform  Club," 
New  York;  Hon.  Clinton  Rogers  Woodruff,  See.  "Municipal  League  of 
Philadelp^iia,"  and  of  "The  National  Municipal  League,"  Glrard  Bldg.,  Phila- 
delphia: B.  F.  Gilkison,  111  Nassau  street,  New  York  City,  Sec.  "League 
of  American  Municipalities;"  Eltweed  Pomeroy,  Newark,  N.  J.,  Prest. 
"Direct  Legislation  League;"  Rev.  W.  D.  P.  Bliss.  Chicago.  111.,  Prest. 
"National  Social  Reform  Union;"  also  the  "Citizens  Union"  and  the 
"City  Club,"  New  York;  "Citizens  Municipal  Association,"  Philadelphia, 
and  the  "Civic  Federation,"  Citizens'  Association"  and  "Municipal  Voters' 
League,"  Chicago.  Civil  service  associations  and  proportional  represen- 
tation   leagues   will   be   referred   to   hereafter. 

The  books  and  pamphlets  issuing  from  the  offices  of  President  Mead 
and  Secretary  Woodruff,  together  with  the  works  of  Dr.  Albert  Shaw  on 
"Municipal  Government"  in  Europe,  and  the  writings  of  Professor  Good- 
now.  constitute  invaluable  contributions  to  municipal  llteratui-e,  and  if 
it  were  not  that  I  had  a  share  in  its  composition  I  should  include  "Muni- 
cipal Monopolies."  edited  and  partly  written  by  Professor  Bemis,  as  quite 
indispensable  to  students  of  city  problems.  For  current  matter  the  official 
publications  of  the  various  cities,  and  such  periodicals  as  "Municipal 
Affairs."  "City  Government,"  "The  Review  of  Reviews,"  "The  Outlook," 
and  "City  and  State,"  are  of  the  greatest  use.  All  the  great  monthlies 
contain  occasional  matter  of  moment  in  this  relation,  and  finally  no  stu- 
dent of  progress  can  afford  to  overlook  Dr.  C.  F.  Taylor's  "Monthly  Talks" 
in  'The  Medical  World."  or  "The  Direct  Legislation  Record,"  edited  by 
President   Pomeroy. 


PRIVATE   MONOPOLY.      I. 

Till'  most  pressing  pioblom  of  the  aK<'  is  the  prol)lcin  of  monopoly. 
Private  monopoly  means  privilege,  unequal  rights,  breach  of  democracy^ 
It  means  congestion  of  wealth  and  power  and  opportunity;  antagonism 
of  interest  between  the  owners  and  the  public,  and  power  to  make  that 
antagonism  effective.  The  monopolists  aim  at  profit;  the  public  desire* 
service  at  low  cost.  Competition  generally  tends  to  low  rates,  but  monopoly 
In  private  hands  tends  to  extortionate  charges  and  unjust  prortts.  To  secure 
and  protect  such  profits,  monopolists  corrupt  legislatures  and  councils, 
water  stock,  hide  their  books,  issue  false  accounts,  make  fraudulent  con- 
tracts, bribe  public  oflicers,  control  elections  and  appointments,  perpetrate 
all  manner  of  frauds  on  the  itublic.  oppress  their  employees,  resist  regulation 
and  defy  the  law.  Yet  with  all  its  evils  monopoly  has  the  great  advantage 
of  saving  the  duplications,  debasements  and  wastes  of  competition.  The- 
problem  is  to  keep  the  advantages  and  get  rid  of  the  disadvantages.  Com- 
petition cannot  do  it  since  it  forfeits  the  advantages  and  is  moreover  im- 
practicable and  unmaintainable  where  men  have  once  learned  the  benetits 
of  unified  industry.  Regulation  will  not  afford  a  full  solution  of  the 
problem  because  (1)  it  cannot  remove  the  antagonism  of  interest  between 
the  owners  and  the  public,  which  is  the  main  root  of  monopoly  evils;  (2) 
it  cannot  eliminate  the  congestion  of  benefit,  tho  it  may  modify  this  con- 
gestion; and  (3)  it  cannot  prevent  the  existence  of  a  privileged  class.  You 
have  still  antagonism,  conijcstion  and  aristocracy,  instcail  of  harmony,  diffusion 
and  democracy.  Regulation  can  do  sometliing,  but  it  cannot  attain  to- 
harmony  of  interest,  or  full  diffusion  of  benefit,  or  equal  rights  and  true 
democracy. 

A  private  gas  plant  or  street  railway  will  be  run  in  private  interest.  It 
is  a  fundamental  maxim  of  business  that  property  is  to  be  managed  in  the 
interest  of  its  owners.  If  the  people  want  the  street  railways  run  in  tl^eir 
interest  they  must  own  tlieni.  Public  utilities  ought  to  be  managed  in 
the  public  interest,  and  not  in  any  private  interest,  and  therefore  ought  to- 
be  owned  by  the  public.  The  very  men  who  manage  the  great  monopolies 
in  the  interest  of  their  private  owners  now,  would  manage  them  equally 
well  for  the  public  if  the  public  were  the  owner.  But  if  you  leave  the 
private  Interests,  which  liave  the  managers  heart-allegiance,  succeed  in 
the  managers  will  use  all  their  power  to  evade  or  nullify  the  law,  or  control 
the  law-making  and  law-executing  ofHcers  in  the  interest  of  the  private 
owners  who  employ  and  pay  them,  and  for  whose  pockets  they  are  bound 
to  work  under  the  business  ethics  of  the  day.  If  the  public  .should,  thru 
regulative  measures,  succeed  in  taking  the  control,  which  is  the  essence  of 
ownership,  so  as  to  compel  a  management  in  the  public  interest,  we  should 
have  something  resembling  public  ownership  by  coercion  (with  borrowed 
capital  and  private  election  of  the  immediate  managers  to  be  watcht  and 
controlled  by  another  set  of  officers  chosen  by  the  public)  until  the  struggling 
private  interests,  whieh  have  the  managers  heart-allegiance,  succeed  in 
evading  or  defeating  the  law;  and  if  regulation  does  not  go  so  far  as  to- 
^^1*1.  ^  ^  **'  control,  the  substance  of  ownership,  and  establish  a  mongrel 
public  ownership  by  confiscation— if  any  margin  of  power  Is  left  the  mana- 
gers to  serve  the  Interests  of  tliose  who  still  hold  the  private  title  to  the 
property,  that  power  will  bo  used  to  make  the  still  existing  antagonisnv- 
of  interest  effective  against  the  public.  Regulation  leaves  one  set  of  men 
to  do  the  work  with  vast  wealth  and  power  in  tiieir  hands  and  everv  interest 
to  flo  the  work  the  way  we  don't  want  it  done,  and  puts  anotlier  set  to 
watch  the  hrst  and  keep  them  from  doing  it  their  wav.  creating  thereby 
tpe  strongest  motives  for  the  monopolists  to  buy  up  or  capture  the  regu"- 
mtors,  control  their  appointments,  or  corrupt  the  government  above  them. 
we  leave  the  antagonism,  and  drive  the  evils  It  causes  deeper  into  the  dark, 
ilii^Vo  i"^*^",'?!*'  of,  them  and  intensifying  others.  Instead  of  our  govern- 
ments  *^°°*™'""8   the   great    monopolies,    they   are   controlling   our    govern- 

n«...^',lo"^„''i^?,*''"''^*'P,',r''";iP'*'t<^  and  real,  brings  harmony  of  Interest  between 
n«,.  fwl  f^^.^H  "V^"*^  ^^  making  them  identical,  makes  every  citizen  a 
?.^.l:!S  <■  ^  ^  business,  thus  securing  the  maximum  dilTusion  of  benefit, 
nil-i. »  l^„£';'"''T"'y.  ""'^    ^'l"^'    '"'ghts.       It    eliminates    the    disadvantage* 


CONTENTS 


Chapter       Page 

Public  Ownership   I  17 

Direct  Legislation II  255 

Home  Rule  for  Cities Ill  387 

The  Merit  System  of  .Civil  Service IV  469 

Proportional  Representation V  474 

Preferential  Voting VI  484 

(or  Majority  Choice  of  Mayors,  Governors,  etc.) 

The  Automatic  Ballot VII     488 

(or  Voting  and  Counting  by  Machinery) 

Best  Means  of  Overcoming  Corruption.  .VIII     492 

(Encouraging  Experience  of  England,  498) 

Appendix 

Legislative  Forms I     505 

(Laws  and  Amenduieuts  on  I).  L.,  Home  Rule,  etc.) 
(Suggested  Forms  for  Future  Enactment,  516) 

Latest  Notes II     523 

Index  of  Subjects 543 

(Analytic  Treatment  of  Leading  Topics) 

Index  of  Persons  and  Places 582 


PKIVATE  MOXOPOLY.     II. 

John  Stuart  Mill  observed  that  monopoly  of  essential  services  Involved 
the  power  of  levying  taxes  on  the  community.  It  may  be  noted  further, 
that  these  monopoly  taxes  are  not  levied  for  public  purposes  nor  by  rlie 
people  or  their  representatives  as  all  good  taxes  should  be.  The  monopolists, 
or  controlling  owners  and  managers  of  private  monopolies,  not  only  exercise 
the  sovereign  power  of  taxation,  but  the  despotic  power  of  taxation  without 
representation  and  for  private  purposes.  If  the  matter  had  been  properly 
considered,  every  grant  of  a  monopolistic  franchise  or  privilege  would  have 
been  held  void  ab  Initio  upon  the  fundamental  principles  of  justice  and  the 
common  law,  because  it  involved  a  grant  of  sovereign  and  ultra-sovereign 
power  to  private  parties.  A  monopoly  controlled  in  private  interest  is 
sovereign  power  in  private  hands.  Only  the  sovereign  people  have  a  right 
to  monopoly,  for  only  the  people  have  a  right  to  the  sovereignty  involved 
in  monopoly,  and  only  public  ownership  can  transform  the  monopolistic 
pow<'r  of  taxation  into  a  power  of  taxation  with  representation  and  for 
public  purposes,  instead  of  taxation  without  representation  and  for  private 
purposes. 

Not  only  do  the  monopolists  exercise  the  power  of  taxation  without 
representation;  they  also  in  large  degree  determine  the  distribution  of  wealth, 
decide  which  industry,  which  class,  which  individual,  wliich  community, 
shall  prosper,  and  which  shall  not;  malie  and  unnialve  the  fortunes  of 
persons,  streets,  cities  and  states;  direct  the  government  and  control  legis- 
lation. Thus  again  we  find  monopoly  giving  its  owners  sovereign  powers, 
wherefore  again  we  say  that  only  the  people  have  a  right  to  own  a  monopoly, 
for  only  the  people  have  a  right  to  sovereign  power.  Monopoly  we  are  bound 
to  have;  it  is  an  economic  necessity;  the  only  question  is,  shall  the  people 
own  the  monopolies,  or  shall  the  monopolies  own  the  people? 

Public  ownership  of  water,  gas,  electric  light,  transit,  telegraph  and 
telephone  systems,  etc.,  is  simply  ownership  by  a  large  body  of  citizens 
Instead  of  ownership  by  a  small  body,  many  stockholders  in  place  of  few, 
and  equal  instead  of  unequal  holdings,  whereby  the  benefits  of  industry  are 
more  evenly  diffused,  and  the  conflict  of  interest  between  the  owners  and 
the  public  is  eliminated  by  malcing  the  owners  and  the  public  one  and  the 
same.    It  is  democracy  and  union  in  place  of  aristocracy  and  antagonism. 

The  change  of  monopoly  from  private  to  public  ownership  and  control 
means  a  change  of  purpose  from  dividends  for  a  few  to  service  for  all.  And 
this  change  of  purpose  resulting  from  unifying  of  the  interests  of  owners 
and  the  public,  is  the  source  of  the  improvements  experienced  under  public 
ownership  In  respect  to  cheaper  and  better  service,  purer  government,  better 
paid  and  more  contented  labor,  superior  citizenship  and  a  fairer  diffusion  of 
wealth  and  power.  Civilization,  manhood,  and  even  the  public  safety,  de- 
mands the  oliange.    (See  Chap.  I  and  Appendix  II  e.) 


Chaptek  I. 

PUBLIC   OWXEKSHIP. 

In  dealing  \vith  this  question  we  note  vnth  special  emphasis 
the  most  important  fact  that  puhUe  ownership  and  government 
0"\vnership  are  by  no  means  synonymous.  Russia  has  gov- 
ernment ownership  of  railroads,  but  there  is  no  public  own- 
ership of  railroads  in  Russia  because  the  people  do  not  own 
the  government.  Philadelphia  has  not  had  real  public  own- 
ership of  gas  works  because  the  people  do  not  own  the  coun- 
cils. AVhere  legislative  power  is  perverted  to  private  pur- 
pose©— where  the  spoils  system  prevails  and  the  offices  are 
treated  as  private  property — where  government  is  managed 
in  the  interests  of  a  few  individuals  or  of  a  class,  anything 
that  is  in  the  control  of  the  government  is  really  private 
property,  altho  it  may  be  called  public  property.  If  coun- 
cils and  legislatures  are  masters  instead  of  the  people,  they  are 
likely  to  use  the  streets  and  franchises  for  private  gain  instead 
of  the  public  good.  If  the  government  is  a  private  monopoly, 
everything  in  the  hands  of  the  government  is  a  private  mo- 
nopoly. At  the  heart  of  all  our  philosophy  about  the  public 
ownership  of  monopolies  lies  the  necessity  for  public  owner- 
ship of  the  government.  The  monopoly  of  making  and  ad- 
ministering the  law  underlies  all  the  rest.  If  the  people  are 
to  own  and  operate  w^ater  works,  street  railways  and  other  in- 
dustrial monopolies,  they  must  own  and  operate  the  govern- 
ment. It  follows  that  the  merit  system  of  civil  service  and 
the  initiative  and  referendum  are  absolutely  necessary  to  real 
and  complete  public  ownei-ship;  the  latter  to  prevent  private 
monopoly  by  abuse  of  legislative  and  judicial  power,  the 
former  to  prevent  private  monopoly  by  abuse  of  official  and 
administrative  power.  The  legal  title  to  property  may  be  in 
the  city  or  state,  and  the  people  may  get  the  whole  beneficial 
use  of  it  thru  the  action  of  honest  legislators  and  officials,  but 
2 


18  THE  CITY  FOR  THE  PEOPLE. 

no  reliance  can  be  placed  upon  the  continuance  of  such  re- 
sults if  the  doors  are  open  for  perversion  of  legislative  and 
administrative  power.  Control  is  the  essence  of  ownership, 
and  unless  the  people  have  the  ultimate  control  constantly  in 
their  own  hands,  so  that  they  can  compel  prompt  obedience 
to  their  will,  and  enforce  the  management  of  public  affairs 
in  their  interest,  the  soul  of  ownership  is  not  theirs  in  spite 
of  the  paper  title.  It  is  of  vital  importance  to  keep  in  mind 
the  fact  that  public  ownership  of  industrial  monopolies  re- 
quires public  ownership  of  the  government,  and  that  this  in- 
volves direct  legislation  and  a  strict,  nonpartisan  merit  sys- 
tem of  civil  service,  so  that  these  measures  are  integral  parts 
of   any  reliable  plan  of  public  ownership. 

To  state  the  case  in  another  way:  Government  is  a  public 
utility;  wherefore  the  doctrine  of  the  public  ownership  of 
public  utilities  involves  the  public  ownership  of  the  govem- 
m.ent.  But  public  ownership  of  the  government  requires 
direct  legislation  and  the  merit  system  of  civil  service,  which 
aie  therefore  essential  parts  of  the  doctrine  of  public  owner- 
flhip  of  public  utilities. 

It  must  not  be  forgotten  in  this  connection  that  putting 
the  legal  title  to  a  street  railway,  or  other  enterprise,  in  the 
people  may  be  the  means  of  rousing  them  to  demand  civil 
service  reform  and  direct  legislation,  in  order  to  transform 
the  paper  title  into  a  real  ownership,  and  make  it  certain  that 
the  property  will  be  managed  in  the  public  interest.  Such 
movements  must  be  carefully  managed,  however,  else  cor- 
porate power  may  win  the  field  before  the  public  spirit  or 
civic  patriotism  of  the  people  can  be  sufficiently  developed, 
and  thoughtless  persons  may  then  mistake  the  failure  of  paper 
titles  and  government  ownership  for  the  failure  of  real  public 
ownership. 

The  present  demand  for  public  ownership  is  largely  the  re- 
sult of  the  evils  experienced  from  private  monopoly.^     A 


„„Kii^  ^^^  "largely"  because  the  demand  is  partly  due  to  the  conviction  that 
8ecuilnrj}ff^^iP„  nf*y  •'If^^n  *°';'^  °*  co-operation  and  the  best  means  of 
IV^  Zl^^^i^l  .""^  ^^*^°*'*^,V  J^'i^'refore  it  Is  preferable  to  private  enterprise 
nonolv^  Pnr^Tr.Lr^  en  iRhtened  and  free  from  the  evils  of  private'  mo- 
mo^rP^■|kilS  t«  K  P''',P"i'."f  ■t.*^"^'^^'"'^  I'^^'^ts  upon  the  idea  that  learning  is 
Mblte  schools  thnn  i^,"""  ,f«*'-'bvted  among  the  whole  people  by  means  of 
public  schools  than  by  reliance  upon  private  Institutions. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  19 

monopoly  is  an  advantage  tending  to  shut  out  competition. 
Monopolies  in  industry  are  of  various  sorts.  A  business  or 
possession  which,  by  its  own  inherent  nature  tends  to  shut  out 
competition  is  called  a  natural  monopoly,  while  a  privilege  or 
immunity  established  by  legislation  or  combination  is  called 
an  artificial  monopoly.  The  distinction  is  convenient,  but 
it  is  doubtful  if  it  has  much  practical  value.  An  exclusive 
bridge  or  ferry  privilege  or  railway  franchise  may  constitute 
as  absolute  a  mono^wly  as  the  ownership  of  a  mine.  So  may 
an  agreement  for  reduced  rates  of  transportation,  or  exclusive 
supply  of  materials  and  products,  or  a  combination  shutting 
out  competition  by  the  weight  of  the  capital  involved  and  the 
risk  of  ruin  in  a  battle  with  the  combine.  Similar  evils  and 
similar  benefits  appear  to  attend  upon  private  monopoly  in 
all  its  varying  forms. 

Some  of  the  evils  that  often  attend  monopoly  in  private 
hands  are  excessive  charges,  enonnous  profits,  watered  stock, 
false  accounting  and  doctored  reports,  poor  service,  disregard 
of  safety,  discrimination,  fraud  and  corruption,  defiance  of 
law,  speculation  and  gambling,  congestion  of  wealth  and 
power,  lack  of  progressiveness,  ill  treatment  of  employes,  de- 
basement of  human  nature  and  denial  of  democracy.  These 
evils  do  not  all  develop  in  every  case.  In  some  cases  only  the 
congestion  of  power  is  present,  but,  as  a  rule,  private  monopoly 
with  nineteenth  century  human  nature  tends  to  produce  the 
evils  above  enumerated  and  now  to  be  briefly  discussed. 

The  Evils  of  Private  Monopoly. 

1.  Excessive  Charges.  One  reason  men  desire  monopoly  is 
the  power  it  gives  to  charge  more  than  a  fair  equivalent  for 
the  service  rendered.  The  owner  of  an  important  bridge  or 
ferry  monopoly  can  make  the  people  pay  several  times  as 
much  as  the  same  labor  and  capital  would  bring  in  the  open 
market,  and  a  street  railway,  or  gas  company,  or  telephone 
company  sometimes  possesses  more  power  to  tax  the  people 
than  the  city  government.  A  few  examples  will  make  the 
matter  clear. 


20  THE  CITY  FOR  THE  PEOPLE. 

The  charges  of  private  water  works  in  the  United  States 
average  43  per  cent,  excess  above  the  charges  of  public  water 
works  for  similar  service,^  and  the  public  rates  are,  on  the 
average,  considerably  above  the  cost  of  the  service  for  which 
a  charge  is  made.^ 

In  Indiana  the  average  revenue  per  family  in  private  water 
works  has  been  shown  to  be  double  the  average  cost  of  the 
servace,  as  disclosed  by  the  records  of  municipal  works.^ 

Of  the  fifty  largest  cities  in  the  country  nine  are  supplied 
with  water  by  private  companies.  These  cities  are  San  Fran- 
cisco, New  Orleans,  Omaha,  Denver,  Indianapolis,  !N^ew 
Haven,  Paterson,  Scranton  and  Memphis.  All  but  three  of 
them  refused  to  give  their  receipts  and  expenses  for  Mr.  Ba- 
kffr's  Manual  of  American  Water  Works,  1897,  and  one  of 
the  three,  Indianapolis,  did  not  state  oj^erating  expenses. 
San  Francisco  made  full  returns,  and  so  did  I^ew  Orleans, 
v/here  the  city  is  part  owner  and  has  an  agreement  that  keeps 
the  company  under  some  restraint."^ 

The  Indianapolis  company  reports: 

Average  consumption 9,000,000  gtillons. 

Debt  $1,000,000 

Capital  stock 500,000 

Interest  on  debt $55,000 

Taxes 13,052 

Revenue  from  City   10,000  for  street  sprinkling. 

Revenue  from  City 64,933  for  fire  protection. 

Gross  receipts   273,753 

Careful  estimates*  place  the  operating  expenses  in  Indianapolis 
at  a  sura  not  exceeding  $80,000  with  $24,000  for  depreciation,  where- 
fore it  appears  that  $117,000  will  cover  the  total  expenses,  aside  from 
interest.     Subtracting    this    from  the  total  receipts,   $273,753,   we 

,or^*'°J!I^''J*''""  "*  ^^  ^-  Baker  in  his  Manual  of  American  Water  Worl£S, 
1890.  He  liad  data  for  318  public  and  430  private  water  works  all  over  the 
country,  and  compared  the  total  family  rentals,  the  total  family  rental  being 
the  ordinary  family  or  household  rate,  plus  the  separate  charges  for  water 
closet,  bath  tub,  wash  bowl,  cow,  horse  and  carriage,  with  use  of  hose 
for  washing  the  latter,  and  hose  for  lawn  sprinkling. 

.  J*.  '^^^  ^P®*  referred  to  is  total  cost,  operating  expenses,  plus  taxes,  depre- 
ciation and  actual  interest  paid.  <       f 

'  Investigation  of  one  of  Prof.  Commons'  students,  1890.  Average  reve- 
nue per  family  in  the  23  private  plants,  |;9.78:  average  total  cost  per  family 
including  interest  for  the  30  public  plants,  !i!4.61,  and  the  family  consumpl 
tlon  was  nearly  one-third  larger  in  the  public  plants,  though  the  population 
having  pK"e^  plants.  ^  '^""^^^  ^"^^^  **"^"  the  population  of  the  cities 

*  This  Manual,  made  by  M.  N.  Baker,  associate  editor  of  The  Engineering 
cr''st  P^uf  R^ildhf^  ''nLp  v^"f  ^?  \  '^^f  Engineering  News  PubUsh  n| 
?n-bl*8ubJectof  wa^l^worls.''"'''''  '"  '"'  '''^'''''  «"^^°"^^   '^  t^«  ^""^^^ 

» The  first  geiieral  indication  of  operating  cost  I  got  by  tabulating  data 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  21 

have  a  profit  of  $156,000  for  the  capital  involved.  Taking  out  the 
$55,000  interest  on  the  debt  we  find  $101,000  clear  profit  for  the  mo- 
nopolists who  hold  the  $500,000  stock,  a  profit  of  20  per  cent,  a 
year. 

The  San   Francisco  company   reports: 

A    bonded    debt    of $9,975,000 

Capital   stock    16,000,000 

Of  which  there  is  paid  up  only 1,230,500 

Operating  expenses    $376,826 

Interest    533.838 

Taxes   102,156 

Total   expenses    1,012,820 

Revenue  from  consumers    $1,548,835 

Revenue  from  City  for  fire  protection 137,236 

Total    receipts    1,686,071 

The  operating  exi>enses,  taxes  and  reasonable  depreciation  on 
real  value  of  plant  amount  to  $660,000,  which  leaves  $1,026,000  profit 
on  capital.  Subtracting  $533,838  interest  on  the  debt,  we  have 
$490,000  clear  profit  for  the  stock,  or  more  than  40  per  cent,  a  year 
on  the  paid  value  or  actual  investment  represented  by  the  stock.* 


from  a  number  of  cities,  and  as  the  results  are  of  Intrinsic  Interest  I  give 
the  table  here: 

O".  ¥.x.  Indicated 
Arerag*  dailj      for  9,000.060  gal- 
Opermtlug  coasampiion       loDs  av.  output 

Expeasea  ia  gallons          under  similar 

conditions 

Providence,  R.  I $72,091  $8,905,000  $73,000 

Worcester,  Mass 55,000  6,500,000  76,000 

Springfield.   Mass 18,478  4,638.000  36,000 

Peabody,  Mass 6.125  906.000  62.000 

Columbus.    0 64.000  14,000,000  41.000 

Detroit,   Mich 107.000  40,000,000  30,000 

Toledo,    0 35,000  8,000,000  40.000 

Milwaukee,    Wis 118.630  25,291.000  40,000 

New  Orleans,  La 64.000  9,000,000  64,000 

Louisville,    Ky 71.000  16,800.000  40,000 

Allegheny,  Pa 80,000  28,000,000  30.000 

Chicago,    111 1,435,516  251,839,000  51,000 

Boston   440,000  50,800,000  74.000 

Philadelphia 1,113,470  215,000,000  46.000 

New  York  city 643,000  189,000.000  31.000 

Most  of  the  plants  are  public.  Other  things  equal,  the  proportional  In- 
dications, from  small  plants  would  be  too  high,  and  those  from  large  plants 
would  be  too  small.  Taking  into  account  the  cost  from  pumping  from 
driven  wells,  300  feet  deep,  the  use  of  water  power  and  natural  gas,  the 
rate  of  wages,  pressure,  character  if  surface,  etc.,  T  concluded  that  $80,000 
was  a  liberal  estimate  for  the  operating  cost  in  Indianapolis.  While  study- 
ing the  point  I  tried  to  get  an  estimate  from  an  engineer  based  on  personal 
Investigation  of  every  detail  of  the  Indianapolis  situation  on  the  spot.  This 
I  have  at  last  succeeded  In  doing. 

Mr.  John  W.  Hill,  a  noted  consulting  engineer  of  Cincinnati,  has  re- 
cently Investigated  the  Indianapolis  Water  Company  by  order  of  the  City, 
and  his  report  has  been  examined  and  approved  by  the  City  Engiueer.  On 
page  29,  the  operating  and  maintenance  expenses  for  the  year  ending  April 
1,  1898,  are  placed  at  $80,000.  The  average  daily  consumption  for  the  said 
year  was  10.260.000  gallons  or  IV^  millions  more  than  the  output  stated  in  the 
Water  Manual  for  1897,  so  that  my  estimate  of  $80,000  operating  expenses 
for  the  9  million  output  is  a  little  too  high.  The  results  of  the  two  methods 
of  estimate  are,  however,  remarkably  similar,  and  I  have  allowed  the  text 
to  stand  as  I  wrote  it  before  receiving  Mr.  Hill's  report. 

The  Income  of  the  Indianapolis  company  for  the  year  ending  April  1, 
1898,  was  $292,561.  which  means  a  net  profit  of  $130,000.  or  26  per  cent,  on 
the  stock  (after  paving  interest  on  the  debt).  The  value  of  the  plant  is 
about  $1,800,000.  or  $8CX).000  above  the  debt,  and  the  percenfage  of  profit 
on  this  is  of  course  much  smaller  (I514  per  cent.),  because  several  hundred 
thousand  dollars  have  been  put  into  the  plant  from  the  earnings,  but  the 
money  the  monopolists  purport  to  have  taken  out  of  their  own  pockets  and 
Invested  in  the  enterprise  is  represented  by  the  stock,  and  the  present  rate 
of  profit  on  that  Is  26  per  cent.  Yet  the  rates  in  Indianapolis  are  not  high, 
but  on  the  contrary  are  lower  than  the  rates  of  private  companies  usually 
are. 

•The  people  of  San  FianclscM  only  get  about  12  gallons  of  water  daily  for 


22  THE  CITY  FOR  THE  PEOPLE. 

In  view  of  such  facts  it  is  no  wonder  that  some  or  all  finan- 
cial items  are  "withheld"  by  a  large  proportion  of  the  private 
plants  all  the  way  thru  the  Water  Manual — no  wonder  that 
most  of  the  companies  in  the  above  named  cities  refused  to 
furnish  financial  data;  nor  that  the  Indianapolis  company 
aimed  to  avoid  the  appearance  of  evil  by  omitting  the  item  of 
operating  expenses. 

Speaking  of  the  benefits  of  public  ownership  of  water 
works  in  small  towns,  Professor  Richard  T.  Ely  says  in 
"Problems  of  Toniay:" 

"I  have  lookt  into  the  experience  of  a  whole  group  of  towns  in 
New  York  State,  and  they  all  tell  one  story.  *  *  *  The  experience 
of  Kandolph,  in  Cattaraugus  county,  New  York,  tells  the  story  for 
all.  A  private  company  wanted  to  put  in  water  works,  and  the 
lowest  bid  which  they  could  be  induced  to  make  was  $28,000,  and 
that  was  on  condition  that  the  town  should  subscribe  for  stock. 
The  charge  for  water  was  to  be  $10  for  a  household,  with  additional 
charges  for  extra  faucets,  closets,  etc.,  in  proportion.  Randolph 
finally  built  its  own  works  for  a  total  cost  of  $20,299.86,  and  with 
a  charge  of  $4  for  each  household,  instead  of  $10,  is  making  a  profit. 
Everybody  is  delighted  with  the  experiment." 

The  price  of  gas  does  not  appear  to  have  any  definite  rela- 
tion to  the  cost  of  production.  Bronson  Keeler  found  in 
1889  that  in  cities  manufacturing  under  closely  simi- 
lar conditions  the  selling  price  varied  from  75  cents  to  $16 
per  thousand  feet.'^  He  found  a  charge  of  $1.25  in  one  city 
and  $6  in  another  a  few  miles  away.  Out  of  820  plants  the 
prices  of  584,  or  71  per  cent,  were  multiples  of  50  cents,  and 
84  per  cent,  were  multiples  of  25  cents. 

In  1885  the  New  York  Senate  investigated  the  gas  compa- 
nies in  the  city  of  iSTew  York,^  and  discovered  that  down  to 


<'«V,^  yearly  payment  of  ?1.  In  Peabody  and  Springfield  the  people  get  40 
111,,  °i®  ,^u'i'^'  ^oJ  ^}  P.*"""  y^*^""!  '°  Worcester,  32  gallons;  In  Cincinnati,  60;  in 
Philadelphia  8i:  in  Boston,  100;  In  Chicago,  200;  in  New  York  citv,  290 
gallons  daily  for  ?1  per  year,  and  in  every  one  of  these  eight  public  systems 
there  is  a  margin  after  allowing  for  interest  and  depreciation  on  the  whole 
value  of  the  plant. 

'  See  Mr.  Heeler's  article  in  the  November  Forum,  1889. 

'Senate  Doc.  No.  41,  March  31,  1885.  The  reports  imraediatelv  became 
so  scarce  that  it  was  almost  impossible  even  for  a  gas  engineer"  to  get  a 
^Z^ll  }  ^^yu"  sueli  startling  revelations  of  stoclj  watering  and  enormous 
profits,  together  with  valuable  information  on  the  cost  of  gas,  and  contains 
so  many  things  that  the  companies  do  not  want  the  public  to  linow  that 
o,f^  K,?.'"™,^  ^,V'f;  According  to  the  belief  of  many  the  companies  bought 
=^£.«it  J".*^.A"f"  \^f  *i°?l^^  °"  ^^^  market  and  hushed  up  the  report  most 
speedily.       (Municipal  Gas,  p.  70.) 


PUBLIC  O^YNEESHIP  OF  PUBLIC  UTILITIES.  23 

the  year  of  the  investigation  the  price  to  ordinary  consumers 
had  been  for  the  most  part  $2.50  and  $2.25  per  thousand, 
and  that  more  than  half  of  such  price  was  clear  profit.  In 
1883  the  average  cost  of  gas  to  all  the  companies  was  60  cents 
in  the  holder  and  $1  delivered  at  the  burner,  while  the  ordi- 
nary price  was  $2.25,  and  the  receipts  of  all  the  companies 
averaged  $2.16.  In  the  year  of  the  investigation  the  com- 
panies made  a  price  of  $1.75,  and  the  following  year  it  was 
reduced  by  state  law  to  $1.25,  which  the  companies  were  still 
charging  in  1897,  altho  75  cents  a  thousand  would  then  have 
yielded  a  good  profit  on  the  real  investment,  as  was  proved 
by  the  evidence  brought  out  in  another  legislative  investiga- 
tion.» 

In  1892  gas  was  being  put  in  the  holders  in  "Boston  at  a 
cost  of  33  cents  per  M;  distribution  cost  20  cents,  allowing  7 
cents  for  depreciation,  and  20  cents  for  interest  on  an  allow- 
ance of  $4  investment  per  M  (which  is  more  than  fair),  we 
find  that  80  cents  per  M  would  yield  an  ample  profit,  yet  the 
companies  were  charging  $1.30  per  M.^^ 

In  Chicago  an  excellent  water  gas  is  put  into  the  holder  at 
a  cost  of  20  cents  per  M — 40  cents  at  the  burner  including 
taxes  according  to  the  statement  of  the  two  chief  Chicago 
companies  to  the  New  York  Stock  Exchange  in  1893  (and 
37^  cents  according  to  the  report  of  the  Mutual  Company  of 
Hyde  Park,  Chicago) — ^interest  at  5  per  cent,  on  the  actual 
value   of  the  plant  ($3.80  per  thousand  according  to  the 


'  Testimony  of  Prof.  E.  W.  Bemls,  the  leading  authority  on  this  subject 
in  the  United  States.  In  his  chapter  on  Gas,  In  "Municipal  Monopolies,"  p. 
588,  he  says:  "Gas  is  a  monopoly,  and  the  individual  consumer  has  no  pro- 
tection from  extortion  unless  it  is  given  by  the  city  and  the  state."  On 
page  591  he  says  that  75  cents  per  thousand  is  a  sufficient  rate  in  large  cities 
east  of  the  Rockies,  and  calls  attention  to  the  Cleveland  gas  case  (1892),  In 
which  it  was  proved  that  the  gas  cost  the  companies  38  cents  at  the  burnei:, 
including  taxes:  7  cents  is  euuf  for  depreciation,  and  15  cents  will  cover 
Interest,  or  20  at  the  very  outside:  so  that  65  cents  would  be  an  ample  total 
charge.  The  company  had  been  charging  $1.  The  city  ordered  a  reduction 
to  60  cents.  The  company  contested  the  order.  But  its  officials  were  forced 
to  admit  that,  aside  from  depreciation  of  about  7  cents,  gas  at  the  burner 
cost  less  than  40  cents  per  M.  The  price  was  finally  fixed  at  80  cents,  with 
a  special  payment  to  the  city  of  5  cents  per  M  (in  addition  to  the  ordinary 
taxes),  making  the  real  charge  75  cents  per  thousand  (Ibid,  591-2,  650). 

According  to  Prof.  James'  "Relation  of  Municipality  to  Gas  Supply," 
1887,  gas  could  be  sold  in  New  York  for  65  cents  a  thousand. 

•"  The  average  charge  for  gas  in  Boston  was  increased  8  cents  per  M  in 
1892  above  the  average  for  1891  (thru  the  abolition  of  discounts)  in  the  face 
of  profits  already  enormous  (30  to  60  per  cent,  on  investment),  and  in  the 
face  of  a  reduction  In  the  cost  of  producing  gas  from  40  cents,  in  1891,  to 
33  cents,  in  1892.  (See  Report  of  the  Legislative  Investigation  of  the 
Bay  State  Gas  Trust,  City  Print,  Boston.  Mass.,  1893,  pp.  61-63,  and  Prof. 
Bemls'  chapter  on  Gas  in  "Municipal  Monopolies,"  p.  589.) 


24  THE  CITY  FOR  THE  PEOPLE. 

Mutual  Company's  Eeport)  would  amount  to  19  cents,  where- 
fore, allowing  7  cents  for  depreciation,  it  is  clear  that  65 
cents  would  be  a  fair  pricCj  whereas  the  actual  charge  in  Chi- 
cago is  $1.  In  Topeka  the  gas  rate  is  $1.70;  in  Kansas  City, 
till  recently,  it  was  $1.75,  and  in  Trenton,  K  J.,  $1.70.  Ac- 
cording to  the  evidence  accumulated  by  Professor  Beniis,  75 
cents  to  85  cents  ought  to  be  more  than  sufficient  in  these 
places  to  yield  a  reasonable  profit  on  the  actual  value  of  the 
plant.  Professor  Bemis  says  that  in  Great  Britain  (where 
public  ownership  has  brought  the  companies  to  terms)  the 
average  price  of  gas  is  only  75  cents,  or  about  half  the  current 
American  price,  and  adds  that  there  is  no  reason  why  the  cost 
should  be  greater  here  than  in  England,^  ^  our  higher  wages 
being  offset  by  our  cheaper  coal  and  oil,  and  the  cost  of  ap- 
paratus being  about  the  same  in  the  two  countries.  He  says 
that  gas  can  be  put  in  the  holders  for  20  to  30  cents  per  M; 
distribution  will  average  15  cents,  including  taxes,  deprecia- 
tion 7  cents,  fair  investment  $3  per  M  in  large  cities,  $4  in 
smaller  cities;  50  cents  average  operating  cost,  70  to  75  cents 
total  average  price  on  a  reasonable  basis  of  6  per  cent,  profit 
on  actual  values.  (Even  this  is  probably  high.  See  Appen- 
dix II,  A.  2.) 

Electric  liffht  companies  levy  large  monopoly  taxes  on  pri- 
vate consumers  and  the  public.  For  commercial  lights  they 
charge  the  people  fifty  to  100  per  cent,  more  than  municipal 
plants,  ^2  and  their  charg-es  frequently  average  two,  three  and 
sometimes  four  times  the  total  cost  of  the  service,  operating 
expenses,  interest,  taxes,  insurance,  depreciation  and  all.^^ 

For  full  data  the  reader  is  referred  to  the  authorities  named  in 
the  notes.    A  few  cases  only  can  be  given  here. 

Prices  for  Cominercial  liights. 

Clinrge  by  Prlvnte  Plant.  ChaiRo  by   Public   Plant. 

Boston,  1  cent  per  meter  hour.  Braintree,   Mass.,  i/^  cent  per  meter 

■D       1  II         -.r  bour. 

Brookllne.   Mass.,   1   cent  per  meter  Swanton,    Vt..    1/3    cent    per    meter 

v     '""V     .       ,.       ,  hour. 

xsew    \ork    city,    1   cent    per   meter  Westfleld,   N.   Y.,   %  cent  per  meter 

Hour.  jjQjjj. 

Philadelphia,  %  cent  per  meter  hour.         Newarlj,    Dei.,   3/10  qent   per   meter 

Detroit,  $1  p(>r  lamp  month.  Wyandotte     (near     Detroit),     16  2/3 

¥foi„«.o.,„„    »«.  1.     o/^  cents   per   lamp   month. 

nwntV       '  ^"'"*'-  ^^  ''''°*^  P*"""  K"-  Coldwater  (near  Kalamazoo),  5  cents 

owntt.  pgj.  Kilowatt 

(Chicago,  1  cent  per  meter  hour.  Peru,  111.,  ^  cent  per  meter  hour. 

"  Municipal  Monopolies,  p.  627. 

«S5!°'-  ^-'onimons  in  "Municipal  Monopolies,"  p.  156. 

lUe  usual  private  company  charge  for  commercial  lights  is  15  to  20 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  25 

Many  more  instances  could  be  given  in  which  public  plants  make 
rates  for  commercial  lighting  that  are  Va  to  14  of  the  rates  of  pri- 
vate companies  in  neighboring  places,  where  conditions,  all  things 
considered,  are  as  favorable  for  low  cost  as  in  the  public  plants. 
The  density  of  business  in  a  large  cit3'  makes  up  for  the  increast 
cost  of  labor  and  construction.  It  must  not  be  forgotten  that  the 
difference  between  public  and  private  commercial  charges  does  not 
indicate  the  whole  excess  of  the  latter,  since  the  commercial  rates 
of  public  plants  are  usually  sufficient  to  yield  a  good  profit — the 
fair  price  or  actual  total  cost  (including  operating  expenses,  taxes, 
insurance,  depreciation  and  interest  on  real  value  of  the  plant) 
will  run  nearer  1/3  than  Vs  of  the  visual  commercial  charges  of  pri- 
vate corporations." 

In  the  early  years  of  electric  lighting,  many  cities  paid  two  to 
four  times  the  fair  price  for  street  lamps,  and  not  a  few  municipali- 
ties still  pay  double  the  value  of  the  electric  lighting  service.  The 
following  table  gives  a  few  facts  for  1890: 

Prices  Paid  to  Private  Companies  Per  Standard  Arc  Per  Year. 

San  Francisco,  $440. 

New  York,  $84  to  $182.  Washington,  $219 

St.  Louis,  $75. 
Philadelphia,  $177.  Brooklyn  (sub-arc),  $182. 

Boston,  $237. 
Cambridge,   $180.  Brookline,   $182. 

Springfield,  $218. 

Lowell,  $182.  Fall  Kiver,  $180. 

Worcester,  $200. 

St.  Louis  paid  $75  a  year  for  each  street  arc  of  2000  candle 
power  burning  all  night  and  every  night,  while  Philadelphia  paid 
$177;  Washington,  $219;  Boston,  $237,  and  San  Francisco,  $440  for 
the  same  service.  The  St.  Louis  rate  yielded  a  profit,  and  in  other 
cities  the  prices  were  sufficient  to  pay  the  operating  expenses, 
taxes,  depreciation  and  reasonable  interest  on  actual  investment 
were  $75  to  $85,  in  New  York,  Philadelphia  and  Boston,  a  little 
more  in  Springfield,  Cambridge,  Brookline,  Lowell  and  Worcester, 


cents  per  Kilowatt-hour.  Municipal  plants  generally  charge  10  cents  per 
Kilowatt-hour,  and  the  actual  cost  Is  only  4  to  7  cents,  or  between  5  and 
6  cents  on  the  average  of  ordinary  cases.  .("The  People's  Lamps,  Arena, 
.August.  189.5:  "Municipal  Monopolies."  1808.  pp.  156-103,  21.3-17  and  p.  2i8, 
where  Prof.  Bemis  says  that  the  cost  of  producing  a  thousand  watts  for 
street  lights,  including  even  interest  and  depreciation,  is  under  u  cents.  ) 
"  See  last  preceding  note. 


26  THE  CITY  FOE  THE  PEOPLE. 

and  about  $100  in  San  Francisco/'  With  fair  rates  the  taxpayers 
of  Philadelphia  woiild  have  saved  $100,000  on  street  arcs  in  the 
census  year;  Boston,  $125,000;  Brooklyn,  $177,000,  etc.,  and  the  sum 
total  saved  to  the  people  in  all  the  cities  named  would  have  gone 
above  half  a  million  dollars. 

Gradually  people  learned  something  of  the  facts,  and  lower  rates 
were  demanded,  but  the  companies,  for  the  most  part,  yielded 
slowly— they  were  protected  by  monopolistic  franchises  and  agree- 
ments, by  their  influence  with  public  officers  and  by  the  ease  with 
which  they  could  doctor  their  accounts  and  make  statements  of 
cost  difficult  for  the  people  to  controvert,  since  the  experts  in  the 
large  cities  were  practically  all  in  the  companies'  employ,  or  under 
their  influence.  Some  concessions  were  made,  however,  as  the 
following  figures  for  1894  demonstrate: 

Yearly  Price  Per  AU  Night  Arc-Reported  2000  C.  P.  Unless 
Otherwise  Marked. 

San  Francisco,  $200. 

New  York,  $146  to  $182.  Washington,  $182. 

St.  Louis,  $75. 

Philadelphia,  $160.  Brooklyn  (1200  c.  p.),  $182, 

Boston,  $139. 

Cambridge   (1200  c.  p.),  $115.  Brookline,  $146. 

Sprinfffield  (1200  c.  p.),  $75. 

Lowell,  $131.  Fall  River,  $160. 

Worcester,  $127. 

The  reduction  is  large  in  some  cases:  San  Francisco  from  $440  to 
$200;  Boston,  $237  to  $139;  Worcester,  $200  to  $127;  Springfield, 
$218  to  $75,  etc.  And  yet  the  number  of  lamps  is  so  much  greater 
than  in  1890  that  the  total  excess  is  larger  than  before.  Boston 
taxpayers  were  overcharged  $100,000  in  1894  for  electric  street 
lights;  New  York  paid  $330,000  too  much;  the  excess  in  Philadel- 
phia was  $425,000 — more  than  $1000  a  day,  and  the  sum  of  the  over- 
charges in  all  the  cities  named  was  a  good  deal  more  than  a  mil- 


"  For  the  evidence  of  this  see  data  in  my  articles  on  "The  Peoples' 
Lamps,"  Arena,  June,  1895,  et  seq. ;  the  report  of  the  Special  Committee  of 
the  Boston  Common  Council,  Oct.  17,  189.5,  conflrming  my  figures;  the  esti- 
mates of  Chief  Walker,  of  the  Electrical  Bureau  of  Philadelphia;  the  data 
of  cost  in  municipal  plants  given  later  in  this  chapter,  and  the  testimony 
of  ■\Vllllam  D.  Marks,  President  of  the  Edison  Electric  Light  Co.,  before  the 
Pennsylvania  Senatorial  Investigating  Committee,  Dee.  5,  1895.  The  city 
Of  Philadelphia  was  paying  $1G0  per  arc.  President  Marks  said  his  com- 
pany would  take  the  whole  5.S00  lights  at  flOO  each,  and  that  the  cost  would 
not  be  more  than  $80  to  |85  an  arc.  He  afterwards  told  his  stockholders 
uiat  at  the  $100  rate  the  company  could  make  .?20  on  every  arc.  The  Electric 
Trust,  fearing  that  Pres.  Marks  would  carry  his  point,  bought  up  a  con- 
trolling Interest  in  Edison  stock,  blocked  the  President's  plans,  and  forced 
his  retirement. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  27 

lion  dollars,  or  more  than  twice  the  total  excess  for  the  same  cities 
in  1890,  notwithstanding  the  reduction  of  rates. 

In  Philadelphia,  New  York  and  other  cities,  the  companies  said 
that  they  could  not  reduce  to  anything  like  the  St.  Louis  rate 
because  of  the  difference  in  the  price  of  coal,  yet  that  difference 
would  not  justify  a  difference  of  more  than  $5  per  arc  year  between 
St.  Louis  and  Philadelphia  or  New  York.'" 

Pittsburg,  in  the  very  heart  of  the  coal  region,  was  paying  $195 
per  arc  year — $55  more  than  Boston,  $35  more  than  Philadelphia 
and  21/2  times  as  much  as  St.  Louis,  or  $120  excess  per  lamp  year! 

The  chaos  of  prices  makes  it  clear  that  the  charge  for  electric 
light  bears  no  definite  relation  to  the  cost  of  production.  It  ap- 
pears to  depend  chiefly  upon  jwlitical  conditions — the  ratio  of  intel- 
ligent public  spirit  to  the  potcer  of  monopoly  in  the  control  of  the  city's 
affairs. 

In  Springfield  alone  did  enlightened  public  spirit  reduce  the  charge 
to  a  reasonable  iioint— her  rate  of  $75  per  sub-arc  (1200  c.  p.)  being 
equal  to  $S8  per  standard  arc  (2000  c.  p.),  which,  for  Springfield 
conditions  is  about  equivalent  to  $75  per  full  arc  in  St.  Louis. 

The  charges  to  private  consumers  frequently  continue  very  high 
after  reduction  of  public  rates.  For  example,  the  Worcester  com- 
pany continued  to  charge  private  consumers  $219  per  arc  after  re- 
ducing the  city  rate  to  $127;  the  Brookline  company  charged  pri- 
vate parties  $182  per  arc  and  the  city  $146,  and  the  Cambridge  com- 
pany- (189S)  charges  private  consumers  $160  per  arc  of  1,200  c.  p. 
burning  till  midnight,  tho  the  price  to  the  city  has  been  reduced  to 
$100  per  arc  of  1,200  c.  p.  burning  all  night  and  every  night. 

Some  reduction  has  occurred  since  1894.  In  1897  and  1898  Bos- 
ton paid  $128  per  arc;  Brooklyn,  $124;  Philadelphia,  $109  and  $146; 
Pittsburg,  $96,  and  New  York,  $146,  $164  and  $182  (for  arcs  that 
are  not  really  over  1200  c.  p.).  The  excess  is  still  enormoiis — $70 
to  $80  being  all  that  should  be  paid  in  any  of  these  cities. 

A  few  years  ago  an  investigation  revealed  the  fact  that  the  people 
of  Greater  Boston  were  paj'ing  the  electric  light  companies  a  mo- 
nopoly tax  exceeding  .$800,000  a  year,  and  the  excess  of  charges  in 
New  York  and  Philadelphia  Avas  much  larger  still. 

Street  rail  way  companies  in  our  larger  cities  are  prominent 
among  monopolistic  extortionists.  The  facts  indicate  that  the 
usual  5  cent  fare  is  nearly  or  quite  double  the  reasonable 
charge.  Buffalo  street  cars  carry  children  for  3  cents,  and 
the  average  of  all  fares  collected  is  3.6  cents,  yet  a  good  profit 
is  realized.     Recently  a  company  asking  for  a  franchise  in 


^■'  See  proof  in  "The  Peoples'  Lamps,'"  Arena,  June.  1895.  whore  it  is 
sliown  that,  considering  the  density  of  business,  the  cost  of  coal.  Ial>or. 
real  estate,  etc.,  the  difference  between  St.  Louis  and  Boston  would  be  about 
|5  or  $6  per  arc  j-ear.  $10  for  Washington,  $12  for  Springfield,  and  little  or 
nothing  for  New  Yorli  and  Philadelphia. 


28  THE  CITY  FOR  THE  PEOPLE. 

Buffalo  agreed  to  sell  three  tickets  for  10  cents,  making  a 
uniform  3  1/3  cent  rate.  A  syndicate  claiming  to  represent 
35  million  dollars  hag  offered  to  buy  up  all  the  old  lines  in 
Chicago  and  sell  tickets  10  for  30  cents,  good  for  the  hours 
of  working  people's  travel,  and  for  school  children  at  all 
hours.  And  President  Farson,  of  the  Calumet  Street  Rail- 
way, of  South  Chicago,  publicly  stated  in  1896,  when  a  fran- 
chise "with  5  cent  fares  and  little  compensation  was  about  to 
be  granted  to  the  General  Electric  Railway  from  the  heart 
of  the  city  to  Twenty-sixth  street,  that  for  such  a  franchise 
for  twenty  years,  if  he  could  have  it  without  dishonorable 
relations  with  the  city  government,  he  would  pay  $100,000 
to  the  city  and  give  a  straight  3  cent  fare.  Several  years 
earlier,  before  all  the  streets  in  Chicago  had  been  let  to  the 
street  railway  companies,  a  prominent  street  railway  financier 
offered  to  build  extensive  lines,  give  a  straight  3  cent  fare  and 
pay  a  considerable  bonus  to  the  city.^'''  Street  railway 
magnates  interested  in  the  Detroit  system,  and  thoroly 
familiar  with  the  business  in  that  city,  offered  to  run 
all  the  cars  in  Detroit  on  a  3  cent  single  fare  with  40 
tickets  for  $1  (a  2^  cent  fare)  and  pay  interest  on  the  cost  of 
acquiring  the  roads,  if  the  city  would  take  them.^^  When 
we  i-eraember  that  these  Detroit  capitalists  contemplate  busi- 
ness under  the  existing  load  of  fictitious  capitalization,  or,  per- 
haps, a  still  greater  load,  and  that  they  expect  to  make  a  good 
profit,  it  is  clear  that  the  rate  suificient  to  cover  operating 
expenses,  taxes,  depreciation  and  interest  on  the  actual  value 
of  the  plant  is  considerably  below  3  cents. 

The  cost  of  operation  on  the  electric  roads  in  our  cities  runs 
from  10  to  12  cents  per  car  mile.^»  The  taxes,  depreciation  and  in- 
terest amount  to  8  or  10  cents  a  car  mile,  bue  when  we  remember 
that,  far  the  larger  part  of  this  is  interest  on  bonds  and  stock, 
and  that  the  capitalization  is  usually  two  or  three  times,  and 
sometimes  more  than  three  times,  the  real  value,  it  appears 
that  4  to  6  cents  would  cover  all  proper  fixed  charges,  mak- 
ing the  total  proper  cost  on  electric  roads  in  such  cities 
as    Chicago,    New    York,    Buffalo,     Philadelphia,    etc.,    about    14 

"  Municipal  Monopolies,  p.  530. 

"  The  City  was  not  In  condition  to  effect  a  purchase  of  the  roads. 
It   is   reported    more   than    this   iu    some   cities,    but,    as   we   shall    see 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  29 

to  16  cents  a  car  mile.""  In  Chicago  and  Philadelphia  there  are 
5  passengers  per  car  mile;  in  Buffalo,  6;  in  Boston,  7;  in  New 
York  a  few  roads  have  about  5  passengers  per  car  mile;  the  Metro- 
politan and  the  Cross-town,  7;  the  Thirty-fourth  street  horse,  9, 
and  the  Broadway  cable,  12.  A  uniform  3  cent  fare  would  yield 
from  15  to  36  cents  per  car  mile  on  these  roads,  and,  except  on  the 
5-passenger  roads,  would  yield  a  profit  above  normal  interest,  with- 
out any  increase  of  traffic.  The  lowering  of  fares,  however,  would 
surely  enlarge  the  traffic,  thereby  raising  the  number  of  passengers 
per  car  mile,  and  reducing  the  car  mile  cost  at  the  same  time,  part 
of  the  new  traffic  going  to  increase  the  number  of  the  car  miles 
run  on  the  road,  which  tends  to  diminish  the  cost  of  each  car  mile. 
Considering  all  the  elements  involved,  it  is  probable  that  a  uniform 
2l^  cent  fare  would  be  sufficient  in  most  of  our  large  cities,  and 
there  is  not  a  little  reason  to  think  that  a  well-managed  railway 
owned  by  the  city  could  afford  to  make  a  2  cent  fare." 


later,  the  accounts  are  doctored.  Here  are  some  of  the  facts  with  the 
authorities: 

Street  Bailvoay  Operating  Cost. 
Electric  Roads.      Operating  Cost  per 

Car  Mile  in  Cents.  Authority. 

Engineer  of  the  Road. 

Co's  Report  to   Railroad   Commissioners. 

Co's  Reports.  (The  figures  include  taxes.) 

Co's  Reports. 

Statement  of  Gen.  Man.  to  Glasgow  Com 

Co's  Reports. 

Elec.   Review,  June  5,  1896,  p.  733. 

Co's  Reports.  (The  figures  include  taxes.) 

Co's  Reports.  (The  figures  include  taxes.) 

Mr.  Hlggius  in  St.  R.y.  Jour.,  1894,  p.  292. 

Mr.   Higgins  in  Street  Ry.  Jour.,  1894. 

President  of  the  Road. 

Co's  Returns  to  Railroad  Commissioners. 

Co's  Returns  to  Railroad  Commissioners. 

Co's  Returns  to  Railroad  Commissioners. 

City  Engineer.     (7.61  now.) 

Co's  Statement  to  Glasgow  Com. 

Glasgow    Com. 

Elec.  Review,  May  22,  1896,  p.  654. 

Elec.   Review,   May  22,  1896,   p.  654. 

President  Metropolitan  Road. 

Railroad  Commissioners. 

Railroad  Commissioners. 

General  Manager  Buffalo  Ry.  Co. 

Official  Report  of  Road. 

Statement  of  Oflieers  to   Glasgow   Com. 

Superintendent  of  Road. 
Co's  Statement. 

Elevated   Roads.  .     ^^    ^      -,  lon^         oao 

New  York  L  roads  13.        Mr.  Higgms  in  St.  Ry.  Jour.,  1894,  p.  362. 

Brooklyn  L  roads  11.        Mr.  Higgins  in  St.  Ry.  Jour.,  1894,  p.  362. 

2°  The  fixed  charges  amount  to  8..55  cents  per  car  mile  on  the  Third 
Avenue  cable.  New  York;  8  cents  on  the  Crosstown  horse;  9  cents  on  the 
Chicago  trolleys;  8.5  in  Boston  (elec);  10  cents  in  Buffalo  (elec);  8  cents 
in  Toronto;  7  cents  In  Montreal  (elec);  6.5  cents  in  Budapest  (underground 

^  ^*Fuller  data  on  the  cost  of  street  railway  service  may  be  had  by  writing 
Prof  Parsons  for  Street  Railway  Circular  No.  II,  5  cents  per  copy;  10  for 
25  cents;  25  for  50  cents;  60  for  $1;  500  for  .$5.  „„o<=finn 

=1  See  "The  Peoples'  Highwavs,"  Arena,  May,  189o,  where  the  question 
is  discussed  with  special  reference  to  Boston  and  Philadelphia.  Even  in 
the  latter  city,  if  the  roads  were  owned  by  the  City  free  of  debt,  a  .:  cent 
fare  would  answer.    (See  also  Appendix  II.  C.) 


New  York   (Met.    U.   Elec) 

10. 

New  York  (Union  O.  Elec.) 

12. 

Buffalo 

11. 

Niagara  Falls  &  Sus.  Bi 

ridge 

10. 

Philadelphia 

11. 

Rochester 

10. 

Washington 

9.27 

Chicago   (City  Ry.) 

13. 

Chicago  (av.   of  urban   r'ds.) 

14. 

St.  Paul 

12. 

Kansas    City 

11. 

Savannah 

11. 

New  Haven 

11.5 

Mllford  &  Hopedale 

8. 

Braintree  &  Weymouth 

6.5 

Toronto 

8.33 

Montreal 

10.50 

Budaiiest 

10.21 

Hanover 

9.3 

Zurich 

10. 

Horse    Roads. 

New  York  (Met.) 

17. 

New   York   (34th   St.) 

17. 

New  York  (2d  Ave.) 

19. 

Buffalo 

17. 

Glasgow 

17.5 

Montreal 

18. 

Cable. 

N.   Y.  3d   Ave. 

11. 

Metropolitan 

17.5 

30 


THE  CITY  FOR  THE  PEOPLE. 


Whatever  experience  may  show  to  be  the  precise  level  of  a  reas- 
onable railway  rate  in  our  cities,  there  is  not  the  slightest  doubt 
that  the  present  rates  are  altogether  too  high.  In  1894  a  franchise 
was  given  the  Detroit  Electric  Eaihvay  on  its  promise  to  give  3 
cent  rides  in  the  daytime  and  4  cent  rides  between  8  P.  M.  and 
5.45  A.  M.  at  night.  It  had  40  miles  of  road,  mostly  on  the  out- 
skirts of  the  citjs  on  routs  that  the  old  companies  had  considered 
too  unprofitable  to  cover.  The  old  companies  fought  the  new  one, 
and  then  practically  absorbed  it;  and  then,  according  to  the  con- 
fession of  one  of  their  chiefs,  did  their  best  to  ruin  the  new  line 
by  running  few  cars  upon  it,  and  giving  poor  service,  in  order  to 
make  the  low  fare  experiment  fail.  Yet  the  road  has  made  a  5 
per  cent,  profit  on  the  investment  each  year  from  the  start,  with 
less  than  four  passergers  per  car  mile  (owing  to  poor  location  and 
poor  service),  and  average  receipts  of  3  1/3  cents  per  jjassenger. 
If  a  poor  road  like  1  his,  working  under  decree  of  devastation,  can 
live  and  profit  on  3  1/3  cents,  how  much  less  fare  would  answer  on 
a  well  placed  line,  abundantly  patronized  and  favored  by  the  fullest 
efforts  of  the  magnates  for  its  success? 

Here  are  some  further  facts  in  regard  to  the  rates  of  fare  in  a 
number  of  progressive  cities  on  both  sides  of  the  water: 


Street  Hallway  Fares  in  Cents. 


Milan  ... 
Vieuuii  .. 
Berlin  . . 
Budapest 
London  . 
Belfast  . 
Glasgow 
Toronto  . 
Detroit  . 
Buffalo   .. 


Popnlation. 

440,000 

1,560,000 

1,800,000 

500,000 

4,000,000 

256,000 

840,000 

176,000 

280,000 

360,000 


Working- 
men's 
Rate 

1. 

1.6 


Children'! 
Rate 


3" 


General 

Rate 
for  Short 
Distance 

2 
2 

2% 

2 

1 

2 

1 

4 

3 


Averagy 

Fare 
on  Whule 
Traffic 

2.7* 

3 

2.7 

2.5 

2.2 

1.78 

4.2 

3.3 

3.6 


*In  Milan  cars  run  night  and  morning  at  a  1-cent  rate,  regard- 
less of  distance.  The  general  rate  is  2  cents  from  the  centre  all 
the  way  out,  without  regard  to  distance.  The  average  is  esti- 
mated. 

Vienna  has  the  zone  system  with  a  2  cent  fare  for  each  zone;  4 
cents  the  maximum  for  a  ride  regardless  of  distance,  with  free  tras- 
fers  to  any  part  of  the  city;  1  3/5  cents  workingmen's  fares  regard- 
less of  distance  on  special  cars;  special  rates  to  school  children, 
also,  the  public  authorities  have  a  voice  in  fixing  rates.  The  aver- 
age in  the  last  column  is  estimated. 

In  Berlin  the  average  fare  is  3  cents,  and  the  operating  cost  per 
passenger  is  a  trifle  over  a  cent  and  a  half. 

In  Glasgow  the  general  rate  is  1  cent  per  half  mile,  but  for  lon- 
ger distances  the  fares  are  proportionately  less,  the  average  fare 
charged  per  mile  over  the  entire  system  being  1.18  cents.  A  number 
of  long  runs  were  establisht  at  a  2-cent  fare  especially  for  working- 
men,  and  night  and  morning  cars  are  run  at  half  rates  so  that 
working  people  may  live  in  the  country  and  come  to  their  work 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  -'U 

every  day  in  the  citj'  at  small  expense.  The  Glasgow  roads 
became  public  property  in  1894.  A  record  made  a  couple 
of  years  before  showed  the  average  fare  under  private  owner- 
ship to  be  3.S4  cents  per  passengar.  In  1896  the  average  fare 
had  been  reduced  to  1.84  cents  per  passenger,  and  in  1898  it  had 
fallen  to  1.78 — a  drop  of  more  than  50  per  cent,  in  five  or  six  years, 
while  in  Boston  we  pay  the  5-cent  rate,  the  same  as  we  did  ten 
years  ago.  The  operating  cost  in  Glasgow  is  1..32  cents,  and  the 
total  cost  1.55  cents,  with  12  passengers  per  car  mile  and  horse 
power,  which  is  considerably  more  expensive  than  electric  traction. 

London  has  a  1-cent  rate  for  short  distances.  Liverpool,  Dublin, 
Belfast  and  Edinburgh  have  a  2-cent  short  ride  rate.  The  average 
of  all  the  fares  collected  in  these  five  cities  is  below  3  cents. 

Toronto  has  3-cent  tickets  good  from  5.30  t-o  8  A.  M.,  and  from 
5  to  6.30  P.  M.,  school  children's  tickets  2^4  cents,  good  from  8 
A.  M.  till  5  P.  M.,  and  general  4-cent  tickets  good  any  time  in  the 
day;  single  fare,  5  cents;  night  fares  are  double  the  day  rates,  ajid 
this  brings  the  average  fare  up  to  a  shade  above  4  cents. 

How  long  will  the  working  people  of  our  cities  be  content  to 
pay  monopolists  double  rates  for  street  car  service?  And  how 
long  will  intelligent  and  conscientious  city  officers  and  legislators 
be  content  to  permit  the  monopolists  to  mulct  the  people  in  this 
way? 

The  Bell  Telephone  Monopoly  charges  $24  to  $75  a  year 
in  small  places  for  services  worth  from  $6  to  $20,  and  in  large 
cities  $90  to  $240  for  services  worth  from  $30  to  $100.^2 
Comparing  the  long  distance  tariff  in  the  United  States  under 
private  monopoly  with  the  government  tariffs  in  England 
and  France,  which  are  like  ours  expressly  framed  on  the  scale 
of  distajice,  we  find  the  public  tariff  in  England  about  1/3 
of  our  private  tariff,  and  in  France  a  good  deal  lees  than 
1/3  of  our  tariff  on  long  distances — a  difference  in  charges 
far  too  great  to  be  accounted  for  by  any  existing  differences 
in  general  prices  or  cost  of  labor. ^^ 

For  the  telegraph  also  our  i)eople  have  had  to  pay  and  are  paying 
double  rates  to  the  Western  Union  monopoly .=^  And  even  the  rail- 
roads have  been  known  to  make  excessive  charges." 


"  See  the  writer's  chapter  on  The  Telephone  in  "Municipal  Monopolies." 
p.  330,  et  seq. 

"  Ibid.,  pp.  338-9. 

"  The  Washburn  Committee  of  the  National  House,  and  Postmaster 
General  Croswell.  examined  the  rates  and  distances  here  and  in  Europe, 
and  found  our  rates  more  than  double  the  rates  In  Europe,  mile  per  mile, 
and  when  intminl  rates  in  Europe  were  compared  with  internal  rates  here 
the  committee  found  that  the  rate  per  mile  In  England  was  less  than 
one-third  the  rate  per  mile  in  the  United  States,  and  In  France  less  than 
one-fourth   of   our   rate,    mile   per   mile   (House   Report,    114,   41st    Cong.    M 


32  THE  CITY  FOR  THE  PEOPLE. 

Monopolies  by  comUnation,  weight  of  capital,  or  privileg-e  secured 
by  agreement  with  the  owners  of  a  natural  monoijoly,  or  a  legisla- 
tive monopoly,  such  as  a  patent  or  a  franchise,  frequently  manifest 
the  same  tendency  to  unfair  charges. 

In  the  Bramkamp  wire  nail  case,*"  the  attorney  for  the  trust  ad- 
mitted that  the  combine  had  raised  the  price  from  80  cents  to  $2.50 
a  keg,  wholesale,  securing  thereby  a  naonopoly  profit  of  several 
million  dollars.  That  trust  went  to  pieces,  but  recently  another 
has  been  formed,  and  wire  nails  have  advanced  100  per  cent,  beyond 
the  ordinary  competitive  price." 

The  coal  combine  was  investigated  by  Congress  in  1893,  and  the 
report  declares  (1)  that  in  1888  the  extortions  of  the  coal  monopoly 
averaged  more  than  $1  a  ton,  or  39  million  dollars  for  the  year, 
and  (2)  that  from  1873  to  1886,  $200,000,000  more  than  a  fair  mar- 
ket price  was  taken  from  the  public  by  this  combination.  It  also 
appeared  that  in  1892  the  combine  raised  the  price  $1.25  to  $1.35  a 
ton  on  the  kinds  used  by  housekeepers,  tho  the  price  of  coal  was 
already  high,  and  the  cost  of  mining  diminishing  every  year. 
Vice  President  Holden,  one  of  the  leaders  of  the  combine,  testified 
before  the  New  York  Senate  Investigating  Committee,  that  "in 
advancing  the  price  of  coal  the  cost  of  production  or  transporta- 
tion is  not  considered  at  all." 

The  Linseed  Oil  Trust  in  1887  put  the  price  up  from  38  to  52 
cents  a  gallon,  or  nearly  five  million  dollars  additional  tax  on  the 
yearly  output.  In  the  same  year  the  Copper  Syndicate  put  up  the 
price  from  10  to  17  and  18  cents  a  pound,  or  thirty  millions  addi- 
tion on  the  yearly  output. 

A  Congressional  investigation  in  1893  brought  out  the  fact  that 
on  the  strength  of  a  rumor  that  the  internal  revenue  tax  was  to 
be  increast  by  Congress,  the  Whisky  Trust  raised  its  prices  25 
cents  a  gallon,  which  would  amount  to  an  additional  profit  of 
$12,500,000  on  its  yearly  output. 

In  1888,  just  after  the  Sugar  Trust  was  formed,  the  average  price 

"Th;*  T^^JU?:  ^'^^'  F„^^:    «^°''^   R'^P-    ^^«^-    15-    1872,    p.    24.    See   also 
Ihe  Telegraph  Monopoly,"  Arena,  Vol.  15,  pp.  400-403). 

telegraiflf  rates^   ^^"°°  *^°  ^^^^^  ^^°'   ^  ^^^^^  ^^^  following  contrast  in 

Ordinary  Rat*  per    Ordinary  Minimum    Average  Receipt 
Word  in  Cents  Charge  per  Mi  s-  per  Message 

sage  in  Cents  in  Cents 


France t  in  ^-^ 

Germany   ...:::::"  iv.  no  ^''^ 


Great  Britain i 

" 1 

Belgium'  .......■.■.■.■.■.■.■.■.■;.■.■:;;.■;:■  ^X%  H  a^, 

Switzerland    tT  JS  »% 

Austria    ^^  if 

United  States '.'.['.'.'.]'.'.'  2  to  7  oA  qi 

See  Arena,  vol.  16.  p.  6.37. 


8erL''on''"Tra'nspor{at\oI-'    ^'  '''''''^  '"  ""  *"*"^-'^  °"°>''-  "'  ^^^   Equity 


The  Iron  Age  ""Set  'l§''^';v''^°Q"'   ^"^  "^""'^   "«   ^""^   bushels   of   oats.       See 
"Review  of  Reviews,  Vol.  XIX,  p.  680.  i  .     i  / 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  33 

of  raw  sugar  was  the  same  as  in  1885,  but  the  average  price  of  re- 
fined sugar  advanced  so  that  the  difference^'  between  the  price  of 
raw  sugar  and  the  price  of  refined  sugar  was  76  per  cent,  naore 
than  in  1885  and  about  70  per  cent,  more  than  in  1887,  the 
year  the  trust  was  formed.  Since  then  refined  sugar  has 
fallen  in  the  market,  but  raw  sugar  has  fallen  more,  so  that 
the  difference  has  never  been  as  small  as  in  1885,  the  enlarge- 
ment being  70  per  cent,  in  1889,  16  per  cent,  in  1891,  50  per  cent, 
for  1892  and  1893,  23  per  cent,  for  1894-5,  27  per  cent,  for  1896  and 
32  per  cent,  for  1897.  For  a  dozen  years  we  have  paid  each  year 
a  good  deal  more  per  pound  for  refining  sugar  than  we  did  in 
1885  (altho  the  cost  of  refining  has  been  constantly  diminishing), 
and  our  sugar  bill  has  averaged  at  least  10  and  perhaps  20  millions 
a  year  more  because  of  the  trust.-'' 

The  Standard  Oil  is  another  monopoly  that  has  kept  prices  from 
falling  as  much  as  the  diminisht  cost  of  transportation  and  re- 
fining would  have  caused  them  to  fall  in  an  open  market^"  and 
at  times  it  has  lifted  prices  absolutely  as  well  as  relatively  in  spite 
of  the  vast  improvements  in  processes  of  manufacture,  great  cheap- 
ening of  transportation  bjv  the  pipe  line  service  and  the  falling 
price  of  crude  oil.  From  1894  to  1897,  for  example,  the  price  of 
refined  oil  went  up  14  per  cent.,  while  the  price  of  crude  oil  de- 
clined 6  per  cent.^ 

If  any  one  has  conscientious  scruples  or  business  interests  which, 
in  spite  of  the  facts  above  described,  persist  in  interfering  with 
his  imderstanding  that  private  monopoly  tends  to  extortion,  he  will 
be  introduced  to  tenfold  more  facts  that  tell  the  same  story,  if 
he  will  investigate  the  matter  thoroly  for  himself;  or  if  he  will  wait 
till  I  get  time  to  write  up  the  rest  of  the  materials  at  hand. 

THE  PROFITS  OF  PRIVATE  MOXOPLY. 

2.  Enormous  profits  result  from  excessive  charges,  and  the 
monopolistic  roll  in  wealth  while  the  working  masses  and  com- 
petitive classes  are  cheated  out  of  their  fair  share  of  the  world's 
wealth. 

In  private  ivafer  supply  we  have  seen  monopolists  taking 
20  to  40  per  cent,  profit  on  their  money  (see  above).    In  Chi- 


^  This  difference  is  what   goes  to  the  trust,   which  is  simply   a   refiner. 

^^  Review  of  Reviews,   Vol.   XIX,  n.  685. 

^  Ibid.,  p.  684.  A  monopoly  may  even  reduce  prices  below  what  they 
would  be  in  an  open  market,  and  yet  its  charges  may  be  unreasonable,  be- 
cause the  margin  between  the  charge  and  the  cost  of  production  is  too 
great,  the  public  not  being  accorded  a  fair  share  of  the  economies  effected  in 
the  business.  Finally  a  monopolistic  concern  may  temporarily  reduce  prices 
to  a  reasonable  level  or  even  below  it  in  order  to  crush  out  existing  or  threat- 
ened competition,  or  for  some  other  purpose,  But  the  fact  remains  that.  In 
proportion  to  the  strength  of  the  monopoly,  It  is  in  the  discretion  of  the 
monopolist  to  raise  his  prices  to  an  exorbitant  degree,  and  he  is  almost  sure 
to  fix  them  so  as  to  draw  to  himself  the  largest  possible  monopoly  profit,  or 
unearned  increment,  disturbing  to  the  utmost  the  fair  distribution  of  wealth. 


34  THE  CITY  FOE  THE  PEOPLE. 

cago  we  have  found  gas  profits  of  15  per  cent.^  According 
to  an  official  statement  in  the  Progressive  Age  July  1,  1891, 
the  Laclede  Company,  of  St.  Louis,  was  making  a  net  profit 
of  66  cents  per  thousand,  or  over  18  per  cent  on  the  cost  of 
duplication.  In  Topeka  and  in  Trenton  the  gas  profit  appears 
to  be  25  or  30  per  cent,  on  the  real  value  of  the  plant. 

In  JTew  York  the  gas  profits  of  the  past  have  been  enor- 
mous, and,  even  with  the  present  comparatively  low  rates,  the 
profits  run  about  25  per  cent,  on  actual  investment,  and  Con- 
solidated Gas  stock,  in  spite  of  generous  infusions  of  water, 
is  selling  to-day  at  213.  The  oldest  of  the  l^Tew  York  compa- 
nies has  paid  40  per  cent  yearly  in  cash  on  the  $750,000  actu- 
ally paid  in,  and  over  1000  per  cent,  in  stock  dividends  be- 
sides." 

The  New  York  Senate  investigation  of  1885  (Sen.  Doc.  41) 
brought  out  the  fact  that  "The  gross  sum  paid  for  the  ten 
past  years  by  the  gas  consumers  in  the  city  of  'New  York  to 
the  companies,  irrespective  of  any  other  source  of  income  to 
them,  was  $74,656,884.  Of  this  amount  nearly  half  was  clear 
profit,  viz,  $30,074,715.  *  *  *  During  the  last  ten  years, 
in  addition  to  costs  of  gas  and  10  per  cent,  on  the  share  or  nom- 
inal capital  of  the  companies  named,  there  has  been  paid  by 
the  consumers  of  New  York  city  about  $9,000,000.  *  *  * 
Taking  all  the  companies,  $4,941,000  have  been  paid  in  divi- 
slends  in  excess  of  10  per  cent,  on  the  nominal  capital  in  ten 
years,  and  the  works  have  been  increased  out  of  earnings  to 
the  extent  of  $6,413,000"— more  than  11  millions  above  10 
per  cent,  on  the  nominal  capital,  water  and  all.  "li  the  10 
j>er  cent,  annual  dividends  are  calculated  on  the  capital  actn- 
aJly  paid  in  by  the  stockholders,  it  would  appear  that  tlie  gas 
consumers  in  ten  years  have  not  only  contributed  suck  10 
per  cent,  dividend,  hut  a  further  amount  sufficient,  in  fact,  to 
nearly  duplicate  the  present  system  of  gas  supply.''  The 
dividends  on  stock  during  the  ten  years  were  in  nearly  all 
cases  from  8  to  35  per  cent.,  in  spite  of  the  water  or  inflation, 
which,  at  the  time  of  the  investigation,  amounted  to  about 


'Selling  price  $1  per  M,  operating  cost,  taxes  and  depreciation  45  cents, 
profit  5o  cents;  claimed  Investnunt,  i«;3.80  per  m.     (See  section  1). 
2  Municipal   Monopolies,  p.  503. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  35 

2/3  of  the  capitalization.  The  average  net  income  for  the 
Manhattan  Company  during  said  period  was  82  cents  per 
thousand  feet,  besides  $1,626,247  for  construction  and  repairs. 
In  the  Metropolitan  the  profit  averaged  85  cents;  in  the  Mu- 
nicipal, $1.03,  and  the  Mutual,  mth  an  average  price  of  $2.29, 
obtained  a  net  average  profit  of  $1.19,  or  a  net  average  in- 
come of  $1.08  per  thousand  feet,  besides  accumulating  a  sur- 
plus of  $2,809,327  and  expending  $616,341  for  repairs.  A 
steady  profit  of  nearly  40  per  cent,  a  year  on  the  real  value  of 
the  investment  is  pretty  good,  but  Boston  can  do  better  than 
that. 

The  legislative  investigation  of  the  Bay  State  Gas  Trust, 
in  1893,  revealed  the  fact  that  the  Bay  State  G-as  Company 
had,  in  the  preceding  year,  paid  out  $477,000  in  dividends 
and  interest,  and  that  the  total  cost  of  the  plant  was  $750,000, 
showing  a  profit  of  nearly  60  per  cent,  on  the  actual  invest- 
ment.^ 

In  the  Cleveland  gas  case  the  evidence  showed  that  the 
company  was  paying  cash  dividends  of  $1440  a  year  on  each 
original  investment  of  $1000,  besides  stock  dividends  amount- 
ing up  to  1892  to  a  total  of  $24,000  for  each  investment  of 
$1000.  The  original  investor  of  $1000,  without  further  pay- 
ment, was  receiving  an  innocent  looking  6  per  cent,  on  $24,000 
of  securiti^ — 144  V^i^  cent,  cash  profit  per  year  on  the  real 
investment  and  a  gift  of  new  securities  that  would  sell  in  the 
market  for  more  than  $24,000.* 

When  John  Mcllhenny,  of  Philadelphia,  was  asked  in 
court  his  opinion  of  this,  he  said:  ''That  is  not  an  unusual 
thing  in  this  growing  country  at  all.  It  is  about  the  history 
of  all  the  prosperous  gas  works." 


'  Report  of  the  Investigation,  revised  by  Mayor  Matthews  of  Boston, 
who  led  the  movement,  Rockwell  &  Churchill,  City  Printers,  Boston,  1803. 
The  company  admitted  receipts  of  $777,760  in  the  preceding  year,  and  placed 
the  operating  expenses  including  taxes  at  $318,837.  The  report  does  not 
state  whether  or  no  the  company  allowed  for  depreciation;  if  so  the  net 
profit  would  rise  above  60  per  cent.,  if  not  it  would  fall  somewhat  below 
60  per  cent,  on  the  investment.  Mayor  Matthews  estimated  the  total  ille- 
gitimate or  monopoly  profits  of  the  Gas  Trust  (several  Boston  comi)anies 
combined)  at  ?2,0Ck).000  in  3  years  and  10  months,  after  allowing  8  per  cent, 
on  the  capital  invested  which  he  deemed  a  legitimate  profit.  The  Gas 
Combine  In  about  four  years  had  succeeded  in  lifting  the  profits  of  the  com- 
panies from  $450,000  to  $874,000  a  year,  the  former  rate  being  already  too 
largo.     (See  Haverhill   Case  70  per  cent,  gas  profit,   Appendix  II  A.) 

■*  Municipal  Monopolies,  p.  592. 


36  THE  CITY  FOR  THE  PEOPLE. 

In  1890  electric  light  was  selling  in  Boston  at  a  profit  oi 
50  per  cent,  on  actual  values.  And  in  spite  of  the  great  reduc- 
tion of  rates  produced  bj  the  public  ownership  movement  and 
the  growth  of  intelligent  comprehension  of  the  facts,  electric 
light  is  still  sold  in  Philadelphia,  JSTew  York  and  numerous 
other  cities  at  rates  sufficient  to  jield  over  30  per  cent,  on  the 
real  investment.-^ 

The  Philadelphia  Traction  Company  requires  less  than  half 
its  receipts  for  taxes  and  operating  expenses,  so  that  it  has  over 
5^  millions  a  year  for  profit  and  depreciation.  If  we  estimate 
depreciation  at  5  per  cent  on  the  probable  cost  of  duplication, 
there  xsdll  still  be  4  millions,  or  16  per  cent,  profit  on  the  real 
value  of  the  plant.^     In  Detroit  the  Citizens'  Company  (the 


^  In  general,  all  above  $65  to  $70  per  standard  arc  year  is  profit.  Only 
in  a  few  cases  does  the  cost,  aside  from  interest  or  profit,  rise  to  |80.  Tlie 
operating  expenses  per  standard  arc  (2000  c.  p.  all  nigrlit  and  every  night) 
usually  run  from  |50  to  $60  with  coal  from  $2.25  "to  $3  a  ton.  For  taxes 
allow  $2  per  arc,  insurance  about  the  same.  For  depreciation  allow  3  to  5  per 
cent,  on  the  actual  value  of  the  plant,  an  amount  which  varies  from  $150 
to  $300— even  a  plant  as  good  as  the  Chicago  plant  with  all  its  underground 
construction  can  be  duplicated  now  for  $300  per  arc,  and  a  first  class 
plant  with  overhead  construction  can  be  built  for  $250  per  standard  arc 
or  its  equivalent.  (See  Arena,  Vol  14,  pp.  86  and  439  and  authorities  there 
cited;  also  Muncipal  Monopolies,  p.  209,  et  seq.).  With  these  data  the 
reader  can  test  the  electric  profits  of  his  own  place,  and  if  the  result 
indicates  a  high  percentage,  he  should  get  an  expert  to  make  an  accurate 
estimate,  or  make  It  himself  with  the  aid  of  the  facts  and  principles  set 
forth  in  the  authorities  just  quoted,  and  if  the  profit  still  figures  high 
he  should  rouse  his  fellow  citizens  to  demand  a  reduction  of  rates,  or 
better  still,  public  ownership  of  the  electric  plant. 

='  This  16  per  cent,  does  not  by  any  means  represent  the  profits  on  the 
money  actually  paid  in  on  the  stock.  Most  of  the  cost  has  been  paid 
out  of  earnings  and  the  12  milllions  derived  from  the  funded  debt.  The 
real  profits  of  the  monopolists  amount  to  20,  30,  40  and  even  67  per 
cent,  on  the  money  paid  in  on  stock,  as  appears  from  the  following  state- 
ment taken  from  p.  42  of  the  Railway  System  of  Philadelphia,  by  Professor 
F.  W.  Speirs  of  the  Drexel  Institute. 

"The  very  large  profit  on  actual  investment  in  Philadelphia  railways  is 
registered  in  the  price  which  these  operating  companies  pay  for  the  privilege 
of  exercising  the  franchises  of  the  original  companies.  The  following  table 
shows  the  net  return  which  the  present  stockholders  of  the  original  railway 
companies  are  receiving  on  paid-in  capital  stock  under  guarantee  of  the 
operating  traction  companies. 

The  lease  terms  of  the  principal  lines  of  the  Philadelphia  Traction  system 
provide  for  net  returns  on  paid-in  capital  stock  as  follows: 

Name  of  Company.  Annual  Dividend  on  paid-in 

Capital  Stock. 

Continental  20  7< 

Philadelphia  City  '.'.'.".'. 315 

Philadelphia  &  Gray's  Ferry 16.0 

Ridge  Avenue    40  g 

Thirteenth  &  Fifteenth  Streets!!.'!!!.'!.'!;.'!!!.';        65'6 
Union    3j  g 

West  Philadelphia !!!!!!!!!!!!!!!!!!!!!!!!     2o!o 

The  dividend  charges  of  the  Electric  Traction  Company  are  as  follows; 

Frankford  &  Southwark 27i 

Citizens    Q-7 

Second  &  Third  Streets!! !!!!!!'.'.'. ".'.'.■.■.■.■.■.■.■. ■.'.■.■.■.       25 

(Note  continued  on  next  page.) 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  37 

old  company)  realizes  14  per  cent,  profit  on  its  stock,  water 
and  all,  tlio  selling  6  tickets  for  25  cents,  mth  a  3  cent  fare 
(8  for  a  quarter)  night  and  morning.  In  Montreal  12  per 
cent,  profits  are  made  on  a  4  cent  fare  and  school  children 
2|  cents.  The  Metropolitan  Company,  of  Washington,  D.  C, 
makes  15  per  cent,  profit  on  the  cost  of  its  system.  The  Third 
Avenue  Gable  earns  $38,422  a  mile  net,  or  22  per  cent,  on 
the  actual  cost  of  the  road  and  its  equipment.  The  profit  on 
the  Broadway  line  is  probably  much  greater,  but  the  separate 
figures  are  not  at  hand.  The  whole  Metropolitan  system,, 
cable,  electric  and  horse,  netted  $8000  a  mile  in  1893  and 
$25,000  in  1897.  Mr.  Edward  E.  Higgins,  one  of  the  fore- 
most writers  on  street  railway  matters,  told  investors  in  1895 
that  in  cities  of  one  to  five  hundred  thousand  inhabitants  net 
earnings  of  15  to  25  per  cent,  on  the  actual  cost  of  duplicat- 
ing the  tangible  assets  might  be  expected  from  the  street  rail- 
ways.^ 

Another  high  authority  ^  says  that  in  1897  the  American: 
street  railways  were  earning  $150,000,000  gross,  and  40  or 
50  millions  net  return  on  the  investment.  And  the  increase 
of  profits  is  very  rapid,  in  spite  of  the  bicycle.  We  have  al- 
ready noted  the  tripling  of  net  earnings  on  the  Metropolitan 
system  from  1893  to  1897,  Further  proof  will  be  found  in 
the  following  circular  issued  by  the  Citizens'  Committee  of 
Boston  and  presenting  some  facts  from  the  Street  Railway 
Supplement  of  "The  Commercial  and  Financial  Chronicle," 
February  27,  1897.  It  shows  that  during  the  period  from 
1890  to  1897,  when  business  in  general  was  verj^  dull,  failing 
to  keep  pace  with  the  growth  of  population,  and  suffering  in 
many  places  an  absolute  decline,  yet  street  railw;ay  earnings 
enjoyed  a  marvelous  increase. 


The  Peoples  Traction  Companj-  has  pledged  the  following  dividends  oa 
paid-in  capital  stock: 

Germantown 24^ 

Green  &  Coates  Streets 40 

The  Thirteenth  &  Fifteenth  Street's  dividend  is  to  be  increased  to 
71.6  per  cent,  after  1900;  the  Frankford  &  Southwark  to  36  per  cent,  by 
1903;  and  the  Citizens  to  72  per  cent,  after  1899. 

1  "Street  Railwaay  Investments,"  p.  77. 

»The  Street  Railway  Journal,  Oct.,  1897. 


38  THE  CITY  FOE  THE  PEOPLE. 

Growth  of  Street  Bailway  Sjarnines. 

Per  cent,  of  Increase  Increase  Decrease 

In  Street  Railway          i'l  clearings  in  olearlnga 

Earnings  since  1890  since  ISUO  siiice  1S90 

New  York  -,  ^  n                    ^ 

Rochester   5o  J; 

Detroit     83  g 

Chicago   «5  H                   ,_ 

Philadelphia It  ^o 

Cleveland    08  Ig 

St.  Louis 68  3 

St.    Paul    66  18 

Baltimore    51  o 

Boston   55  13 

In  some  places  where  there  has  been  a  considerable  extension  of 
lines,  the  traffic  and  earnings  have  increased  at  still  higher  rates. 
For  example,  the  earnings  of  the  Worcester  roads  have  grovs^n 
170  per  cent,  and  the  trackage  over  200  per  cent,  since  1890,  while 
clearings  have  risen  only  16  per  cent.;  in  Springfield,  the  trackage 
and  earnings  have  grown  180  per  cent.,  while  clearings  were  sta- 
tionary; in  Buffalo,  the  trackage  and  earnings  have  increased  140 
per  cent.,  while  clearings  have  fallen  5  per  cent.;  other  similar 
cases  of  enormous  increase  of  earnings  are  chronicled.  Pittsburg, 
133  per  cent.,  while  clearings  fell  off  5  per  cent.;  New  Haven,  185 
per  cent.,  while  clearings  rose  but  12  per  cent..;  Hartford,  270  per 
cent.,  while  clearings  advanced  14  x>er  cent.,  etc. 

In  Boston  and  its  suburbs,  street  railway  traffic  has  nearly 
doubled  in  the  last  ten  years.  Since  1888,  the  first  year  of  the 
West  End  consolidation,  the  number  of  miles  of  track  operated 
by  the  company  has  increased  10  per  cent.,  while  the  passenger 
traffic  has  risen  80  per  cent.  If  such  results  have  been  achieved 
in  the  last  eight  years  of  severe  depression,  what  may  we  expect 
from  the  next  thirty  years  of  probable  prosperity  and  ever  accele- 
rating progress? 

Telephone  profits  amount  to  12,  20  and  even  30  per  cent, 
on  real  investment  in  towns  and  smaller  cities,  while  some  of 
the  charges  in  our  largest  cities  are  sufficient  to  yield  more 
than  100  per  cent,  clear  profit.  The  Bell  Company  proper 
reports  $21,000,000,  or  2/3  of  its  receipts  since  the  beginning 
as  clear  profit  above  all  expenses,  including  interest,  and  for 
1897  its  profit  was  $4,169,000,  or  4/5  of  the  gi-oss  receipts. 
In  a  jSTew  York  investigation  the  sworn  testimony  of  the 
officers  of  the  Metropolitan  Telephone  Company  showed  that 
its  net  profits  were  474  per  cent,  in  six  years  on  the  cash  capi- 
tal invested— 116  per  cent,  in  1885,  147  per  cent,  in  1886, 
145  per  cent,  in  1887,  etc.  While  the  rate  was  $60,  then 
raised  to  $150  and  again  to  $180,  the  company  netted  $2,843,- 
,454  in  six  years  on  an  original  cash  investment  of  $600,000. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  39 

The  o\niers  of  the  Western  Union  Telegraph  pay  all  ex- 
penses and  interest  on  bonds  and  then  have  left  a  clear  profit 
of  120  per  cent,  on  the  property  value  that  remains  after  sub- 
tracting the  amount  of  the  bonds  from  the  cost  of  duplicating 
the  plant.^ 

One  hundred  and  twenty  per  cent,  is  a  pretty  good  profit 
even  for  a  monopolist,  but  there  is  more.  The  Hon.  John 
"Wanamaker  says  that  "An  investment  of  $1000  in  1858  in 
Western  Union  stock  would  have  received  up  to  the  present 
time  stock  dividends  of  more  than  $50,000  and  cash  dividends 
equal  to  $100,000,  or  300  per  cent,  cash  dividends  a  year."^ 
Think  of  it,  getting  your  money  back  a  hundred  times  in  cash 
and  fifty  times  more  in  good  securities,  selling  now  at  98  in 
spite  of  all  the  water  in  them — 300  per  cent,  a  year  in  cash  and 
150  per  cent,  in  stock! 

The  net  profits  of  the  Tin  Plate  Trust  are  estimated  at  40' 
per  cent,  on  actual  values,  and  those  of  the  Wire  Trust  at  60 
per  cent,  a  year.^ 

The  Sugar  Trust  has  realized  profits  at  the  rate  of  ^14  per 
cent,  in  1888,  400  per  cent,  in  1889,  200  per  cent,  in  1893, 
etc.,*  and  some  of  its  members  at  least  are  now  receiving 
more  than  360  per  cent,  on  actual  values.^ 

The  Oil  Monopoly  has  been  known  to  make  530  per  cent, 
on  its  whole  capital  year  after  year,  and  soine  of  its  invest- 
ments and  enterprises  have  netted  it  as  high  as  800  per  cent. 


1  Arena,  Vol.  15,  p.  600. 

2  P.   M.   Gen'l  Wanamaker's   "Arguments  for  a  Postal   Telegraph,"   1890. 

3  Review  of  Reviews,   Vol.   XIX,   pp.   687,   688. 

*  See  data  for  these  conclusions  in  Henry  D.  Lloyd's  "Wealth  against  the 
Commonwealth,"  pp.  32,  33,  citing  investigations  by  committees  of  Congress 
and  the  New  York  Senate.  The  percentage  in  1893  Is  really  infinity  because 
the  ?10,000,000  bonds  more  than  covered  the  real  values,  which  were  placed 
at  $7,740,000,  excluding  refineries  that  had  been  closed  or  dismantled  by 
the  trust.  The  whole  $75,000,000  of  stock  was  therefore  water  as  well  as 
part  of  the  bonds.  So  that  the  15  millions  of  dividends  and  surplus  after 
paying  interest  on  the  bonds,  was  a  profit  on  pure  space,  rather  than 
200  per  cent,  on  the  $7,740,000  real  value  which  belonged  in  truth  to  the 
bondholders  and  not  to  the  stockholders. 

°  The  Trust  is  now  paying  12  per  cent,  on  its  common  stock.  The 
Brooklvn  refineries,  capitalized  at  $500,000.  were  brought  into  the  Trust 
at  $15,'000,000  in  stock.  So  that  in  respect  to  the  Brooklyn  Company  at 
least  the  watered  capital  appears  to  be  quite  30  times  the  real,  and 
12  per  cent,  on  the  stock  means  360  per  cent  dividends  on  real  values, 
to  sav  nothing  of  Brooklyn's  share  in  the  rapidly  accumulating  surplus  of 
the  Trust,  which  amounts  to  over  30  millions  (see  data  in  Review  of  Reviews, 
Vol.  XIX,  pp.  684-5). 


40  THE  CITY  FOR  THE  PEOPLE. 

a  year,  and  in  ooie  case,  thru  railroad  rebates,  over  3000  per 
cent,  profit  per  year  was  obtained.^ 

Do  you  realize  tbe  meaning  of  all  this?  Do  you  grasp  tbe 
full  significance  of  these  enormous  profits  and  the  excessive 
charges  on  which  they  are  based?  Do  you  perceive  that 
i  monopoly  in  private  hands  means  taxation  vnthout  repre- 
sentation and  for  private  purposes?  Do  you  know  that  our 
people  now  are  subjected  by  the  monopolies  to  a  taxation  by 
the  side  of  which  the  taxes  levied  by  King  George  and  his  Par- 
liament are  as  the  dust  in  the  balance  ? 

Taxation  without  representation  is  tyranny,  and  eveiy  mo- 
nopolistic franchise,  privilege  or  possessiou,  by  nature,  law  or 
agreement  is  a  transgression  of  our  liberties.  A  monopoly  in 
private  hands  gives  its  o^vner  the  power  to  collect  from  con- 
eumers  more  than  the  value  of  what  they  receive.  One  may 
(Siarge  the  fair  value  of  the  service  he  renders  without  a  mo- 
nopoly. The  advantage  of  monopoly — the  reason  men  strug- 
gle so  hard  to  obtain  it — is  the  power  it  gives  to  charge  more 
than  that  value.  In  other  words,  a  private  monopoly  confers 
the  inestimable  privilege  of  demanding  something  for  noth- 
isg,  and  involves  the  power  of  taxing  the  people  for  private 
purposes. 

If  these  magic  methods  of  accumulating  riches  were  equally 
diffused,  it  would  not  be  so  bad ;  but  the  working  people,  as  a 
rule,  are  not  represented  in  the  gas  and  electric  light  trusts, 
the  street  railway  companies,  the  sugar  trust  or  the  oil  mo- 
nopoly. They  have  to  sell  their  labor  and  produce  in  a  com- 
petitive market,  and  buy  very  largely  in  a  monopolized 
market. 

There  are  two  principles  of  the  common  law  that  are  of 
the  utmost  moment  to  students  of  monopoly.  The  first  is  that 
a  monopoly  is  void  as  against  public  policy.^     The  second  is 


•  Wealth  against  the  Commonwealth,   pp.   67,  99  and  100. 

» Chicago  Gas  Light  Co.  vs  .People's  Gas  Light  Co.,  121  111.  530; 
Richardson  vs.  Buhl,  77  Mich.  632;  see  also  68  Pa.  St.  173,  186;  50  N.  J. 
Eq.,  52;  130  U.  S.  396.  In  the  Michigan  case  Chief  Justice  Sherwood  said: 
"Monopoly  in  trade  or  in  any  kind  of  business  in  this  country  is  odious  to 
our  form  of  government.  *  *  *  Its  tendency  is  destructive  of  free  institutions, 
and  repugnant  to  the  instincts  of  a  free  people." 

In  the  Case  of  the  Monopolies  (11  Coke.  84,  h)  it  was  held  that  even 
the  sovereign  power  of  Queen  Elizabeth  was  incompetent  to  create  monopolies 


PUBLIC  OWI^ERSHIP  OF  PUBLIC  UTILITIES.  41 

that  a  legislative  body  in  a  free  country  has  no  power  to  tax 
for  private  purposes,  and  cannot  confer  such  power  on  any 
man  or  set  of  men.^ 

Erom  these  two  settled  principles  of  our  law  it  clearly  fol- 
lows that  no  franchise  or  monopolistic  pri\dlege  can  la^vf ully 
be  granted  in  America,  and  that  all  such  grants  actually  made 
arc  void  ab  initio.  The  established  rules  of  the  law,  logically 
carried  out,  would  render  utterly  void  every  monopolistic 
franchise  and  ownership  in  existence.  The  public  and  the 
public  only  may  lawfully  own  a  monopoly,  because  under 
such  ownership,  and  only  under  such  ownership,  does  the 
power  of  taxation  involved  in  monopoly  become  a  power  of 
taxation  for  public  purposes  and  not  for  private  purposes. 

All  this  is  clear,  and  yet  our  judges  would  probably  hesi- 
tate to  declare  a  legislative  franchise  void  to-day  even  if  the 
argument  against  its  validity  were  fully  and  strongly  urged 
(which  it  never  has  been  so  far  as  I  know).  And  they  would 
hesitate  because  of  the  long  line  of  such  enactments  in  the 
past,  and  the  disturbance  that  would  be  caused  by  an  adverse 
decision  at  this  late  day.  And  yet  it  is  perfectly  manifest  that 
the  fundamental  principles  of  republican  government  are 
broken  every  time  a  franchise  is  granted,  and  every  mo- 
ment a  monopoly  is  maintained  by  aid  of  the  law  instead 


because  they  were  detrimental  to  the  Interests  of  the  people.  And  if  the 
"Divinely  Commissioned  Ruler"  of  the  people  may  not  inflict  this  injury 
upon  their  interests,  by  what  authority  can  it  be  done  by  the  servants 
of  the  people,  elected  to  conserve  their  interests,  not  to  defeat  them?  An 
agent  must  be  loyal  to  his  principal's  interests,  and  the  moment  he  ceases 
to  be  so  his  authority  vanishes.  This  is  bed  rock  in  the  law  of  the  civilized 
world. 

'  A  legislative  bodv  can  tax.  or  authorize  taxation,  for  puUic  purposes 
only  (U.  S.  Supreme  Court,  20  Wall,  at  664,  U.  S.,  487,  58  Me.  590,  2  Dill. 
353.  Cooley  on  Taxation,  p.  116  and  cases  cited)  and  taxation  for  the 
benefit  of  an  enterprise  in  private  control  is  not  for  a  public  but  for  a 
private  purpose,  and  is  bevond  the  sphere  of  legislative  power.  (Judge 
Dillon  in  27  la.  51,  and  58  Me.  590.     See  also  20  Mich.  487.) 

It  makes  no  difference  whether  the  constitution  says  anything  about 
it  or  not.  The  provisions  of  the  constitution  are  not  the  only  limitations 
on  legislative  power.  There  are  others  that  inhere  in  the  very  substance 
of  republican  institutions,  underlying  the  constitutions  as  essential  to  the 
very  purposes  for  which  the  constitutions  exist,  and  therefore  impliedly 
recognized  by  the  creation  and  maintenance  of  said  constitutions.  (The 
U.  S.  Supreme  Court  In  20  Wall.  See  also  Judge  Dilllon  in  27  la.  51; 
25  la.  540;  and  39  Pa.  St.  73.)  These  cases  and  many  others  declare  that 
legislative  power  is  limited  by  the  great  principles  of  justice  for  the  enforce- 
ment of  which  government  is  instituted,  that  acts  in  violation  of  these 
principles  will  be  held  void  by  the  courts,  although  no  provision  of  the 
constitution  can  be  found  to, condemn  them,  and  that  the  taking  ot  Aa 
property  to  give  it  to  B,  or  the  Identical  act  of  giving  B  a  power  whereby 
he  mav  help  himself  to  A's  propertv  is  beyond  the  limits  of  legislative 
authority.  And  what  the  legislature  cannot  lawfully  do  directly  because  of 
the  injustice'  of  the  act,  it  cannot  lawfully  accomplish  indirectly  under  the 
guise  of  a  franchise. 


42  THE  CITY  FOB  THE  PEOPLE. 

of  ])cing  swept  into  the  list  of  illegalities,  as  it  should  be.  The 
people  are  bitter  in  their  denunciation  of  trusts,  and  Congress 
has  passed  severe  laws  against  them  for  the  sole  reason  that 
they  are  monopolies.  Whereby  we  have  the  serio-comical 
spectacle  of  a  government  creating  monopolies  with  one  hand 
and  enedavoring  .to  choke  them  with  the  other — declaring 
absolutely  void  all  monopolies  formed  by  agreement  among 
men  because  monopoly  is  in  its  nature  contrary  to  public 
policy,  and  sustaining  exactly  similar,  in  some  cases  identical, 
monopolies  established  by  the  agents  of  the  people  without  an 
atom  of  authority  to  do  it,  but  thru  a  flagrant  breach  of  their 
trust  and  in  violation  of  the  fundamental  principles  of  free 
institutions. 

WATERED  STOCK  AND  INFLATED  CAPITAL. 

3.  Overcapitalization  is  the  twin  sister  of  extortion.  Both 
arise  naturally  from  the  desire  to  squeeze  as  much  wealth  as 
possible  out  of  the  people  and  to  keep  the  people  quiet  during 
the  process.  Get  a  franchise,  issue  a  lot  of  stock,  keep  enuf 
of  it  to  retain  control  of  the  enterprise,  sell  the  rest,  build 
your  plant,  bond  it  for  all  it  is  worth,  and  recoup  all  you 
put  into  the  concern,  then  double  up  the  stock  and  keep  ad- 
ding to  it  as  the  business  grows,  so  that  an  actual  profit  of  20, 
50  or  100  per  cent',  on  the  real  investment  will  be  only  5  or 
6  or  7  per  cent  on  the  bonds  and  stocks,  and  so  appear  on 
the  face  of  the  accounts  to  be  only  a  reasonable  profit,  not 
likely  to  arouse  opposition  or  set  in  motion  the  legislative  or 
administrative  machinery  for  the  reduction  of  the  rates — 
such  is  the  normal  monopolistic  plan.  And  if  some  public- 
spirited  citizen  should  stir  things  up  and  obtain  a  law  or  ordi- 
nance or  order  reducing  rates,  the  monopolist  can  take  the 
matter  into  the  courts  and  protect  his  extortions  in  large  de- 
gree by  showing  that  much  of  the  bonds  and  stock  have  come 
into  the  hands  of  "innocent  purchasers  for  value,"  wherefore 
he  must  be  allowed  to  make  interest  and  dividends  on  the  whole 
capitalization,  else  the  said  innocent  holders  will  be  cheated 
out  of  a  fair  return  and  their  property  practically  confiscated, 
which  would  be  a  very  wicked  thing  if  it  were  caused  by 


PUBLIC  OAVXEKSHIP  OF  PUBLIC  UTILITIES.  43 

legislative  reduction  of  rates  acting  on  a  condition  of  grievous 
overcapitalization,  but  is  perfectly  justifiable  if  caused  by  the 
stock  manipulation  or  the  profit-absorbing  tendencies  of  the 
monopolist  himself.  Water  in  the  capital  is  useful  also  in 
protecting  the  monopolist  from  public  ownership.  Dilute 
tlie  figures  so  that  the  profits  will  seem  quite  small,  and  the 
people  will  let  things  go  on  till  the  business  pays  5  or  6  per 
cent,  or  more,  on  the  whole  capitalization,  and  the  stock  rises 
to  par  in  the  market,  water  and  all,  and  then  if  the  people 
get  to  reading  "foolish"  books  on  public  questions,  or  be- 
come disgusted  with  corporate  monopolies  by  direct  expe- 
rience, and  begin  to  demand  public  ownership  of  gas,  electric 
light  works,  or  street  railways,  or  whatever  line  you  may  be 
in,  you  can  get  the  legislature  to  pass  a  law  (if  it  has  not 
already  done  so)  requiring  that  cities  desiring  public  owner- 
ship of  public  utilities  shall  buy  out  existing  plants,  and  the 
courts  will  make  the  cities  pay  full  market  value,  the  effect 
of  which  ^\^ll  be  to  keep  your  city  from  going  into  public 
o\vnership,  or  to  give  you  several  times  the  value  of  your  plant 
if  it  does. 

Some  facts  regarding  overcapitalization  may  indicate  the 
extent  of  the  evil.  Tor  gas  plants  in  large  places  $3  per 
thousand  feet  of  output  is  a  fair  capitalization,  $4  being  about 
the  limit.^  Yet  in  many  states  the  average  gas  capitalization 
rises  to  $8  or  $10  per  thousand.    In  1890  BroAvn's  Gas  Direc- 


1  In  Massachusetts,  in  1897,  there  were  six  gas  companies  outside  of 
Boston  having  an  output  of  more  than  60  million  feet  each,  and  free  of  the 
complications  in  accounts  which  result  from  the  union  of  electric  light 
and  gas  works.  These  companies  were  in  Cambridge,  Fall  River,  Haver- 
hill, Lowell,  Springfield  and  Worcester,  and  their  average  capitalization 
was  $2.87  per  thousand  feet  of  output.  The  Mutual  Co.,  of  Hyde  Park, 
Chicago,  reports  S2.69  stock  per  M.  It  has  no  bonds,  and  all  it  claims  In 
surplus  and  tangible  assets  amounts  to  $3.80  per  M.  The  capitalization  in 
Richmond  is  $3;  in  Philadelphia  and  in  Wheeling  about  the  same.  For 
Washington  it  was  $3.25  in  1890,  and  $2.59  in  Milwaukee. 

Professor  Bemis,  our  highest  authority  on  gas,  says  that  in  Great  Bri- 
tain the  total  capital  that  has  been  raised  or  borrowed  by  the  public  gas 
companies  averages  $2.99  per  M.  of  annual  output,  and  in  the  case  of  the 
private  companies,  $3.27.  The  average  "capital  employed" — apparently  the 
structural  value— in  eight  leading  public  plants  and  ten  private  companies 
was  $2.60  and  $2.46  per  M.  The  Professor  says  there  is  no  reason  why  gas 
construction  should  cost  more  here  than  In  England,  and  in  cities  of  200.00C 
or  more  east  of  the  Rockies,  he  says,  the  cost  of  duplication  would  rarely 
exceed  $4  per  M.  The  data  collected  by  Prof.  Bemis,  Prof.  James  and  Mr. 
E.  C.  Brown,  editor  of  The  Progressive  Age,  indicate  that  in  places  of  5,000 
to  25,000,  where  the  population  is  scattered, .  the  real  investment  is  usually 
from  $4  to  $6  per  M;  in  places  of  35,000  or  more  it  is  $3  to  f5,  and  In  places 
above  200.000  It  is  $3  to  $4.  (See  Bemis  on  Municipal  Ownership  of  Gas, 
Amer.  Econom.  Assoc,  pp.  42-5,  and  his  chap,  on  Gas  in  Municipal  Monopo- 
lies, pp.  624-5,  627,  590.  591.  598,  608;  also  Brown's  gas  directory  in  Progres- 
sive Age  for  1890,  and  Prof.  E.  J.  James'  "Relation  of  the  Modern  Munici- 
pality to  the  Gas  Supply,"  Pub's  of  Econ.  Assoc,  Vol.  I,  1886-7.) 


44  THE  CITY  FOR  THE  PEOPLE. 

tory  placed  the  capitalization  at  $9  in  Eochester  and  St.  Paul^ 
$13  in  Jei-sey  City,  $11  in  San  Francisco,  $14  in  Baltimore, 
$19  in  St.  Louis  and  $20  in  'New  Orleans.  The  present  capi- 
talization in  JSTew  York  city  is  $10,  and  in  Boston  it  is  $42 
per  thousand  feet  of  annual  output.^ 

The  Mutual  Company  of  Chicago  has  been  bought  by  the 
People's  Company,  which  issued  $5,000,000  of  bonds  in  place 
of  the  Mutual  stock,  representing  $2,119,667  of  tangible  as- 
sets. This  made  the  capitalization  $9  per  thousand  feet,  a 
figure  which  holds  true  of  all  the  Chicago  companies.  Their 
capital  is  two-thirds  water,  and  their  60  millions  of  securities, 
representing  20  millions  of  structural  value  and  40  millions 
of  free  gift  by  the  people,  are  above  par.  In  one  Chicago 
gas  case  it  was  affirmed  on  oath  that  only  $100,000  had  ever 
been  paid  in  in  cash  to  the  company,  whose  stock,  in  1887, 
was  about  5  millions,  and  which,  in  that  year,  issued  a  divi- 
dend in  bonds  of  7|  millions,  while  the  stockholders  almost 
doubled  their  stock  in  a  consolidation  of  companies  then 
effected.^  This  shows  more  than  2  of  water  to  1  of  solid  since 
1887,  and  an  original  investor  of  $1,D00  has  now  $175,000 
of  securities,  or  17,500  per  cent,  on  his  investment,  without 
counting  the  cash  dividends  he  has  received. 

In  Boston  in  the  eighties  the  Bay  State  Gas  Company  was 
capitalized  at  $5,000,000  on  an  actual  capital  expenditure  of 
$750,000.4  j^^^  ^l^g  "Boston  Gas  Syndicate,"  or  "Gas 
Trust,"  formed  in  1889  by  the  Bay  State  and  four  other  com- 
panies, added  $13,365,000  illegitimate  capitalization  to  the 
$4,640,000  lawful  capitalization  of  the  component  compa- 
nies, making  a  total  capitalization  of  $17,000,000,  or  nearly 
4  times  the  honest  figure.* 

The  growth  of  the  water  evil  in  Boston  has  been  aston- 
ishing.    In  1888  the  gas  capitalization  in  Boston  was  about 


=  See  below  for  Boston  figures.  The  New  York  Senate  investigation  of 
1885  found  the  gas  capitalization  In  New  Yorli  city  at  that  time  $8.75  per 
M.  and  stated  that  the  fair  capitalization  would  be  about  $3  per  M  of  an- 
nual output. 

'  Municipal  Monopolies,  593. 

*  The  Matthews  Legislative  Investigation  of  the  Boston  Gas  Trust,  Dn- 
mutilated  report,  City  Print.,  1893,  pp.  6,  47,  48,  95.  There  were  some 
patents  stated  at  $250,000,  in  addition  to  the  ■^750,000  spent  in  constructing 
works  and  laying  pipes,  but  there  was  no  evidence  to  show  that  the  Bay 
State  ever  paid  a  dollar  for  the  patents,  or  that  they  had  any  value.  There 
was  no  entry  on  the  Bay  State's  books  of  paying  anything  for  patents. 


PUBLIC  0W2v'ERSHIP  OF  PUBLIC  UTILITIES.  40 

$4  per  M,  which  was  not  unreasonable,  but  now  (1898)  the 
Boston  companies,  as  a  whole,  present  one  of  the  worst  cases 
of  dropsy  to  be  found  in  the  history  of  diluted  capital.  The 
amount  of  water  in  their  composition  is  astounding,  their 
total  capitalization  being  in  round  numbers  $99,000,000, 
or  $42  per  thousand  feet  of  annual  output,  which  is  more 
than  ten  times  the  fair  capitalization  per  thousand  in  this 
city.^ 

The  water  in  the  stock  values  of  Philadelphia  street  rail- 
ways averaged  5  to  1  in  1897,  and  is  now  about  7  to  1.  If 
we  consider  the  relation  between  stock  values  and  amounts 
paid  in  we  shall  find  it  19  to  1  for  the  Thirteenth  and  Fif- 
teenth street  lines,  16  to  1  for  the  Citizens',  10  to  1  for  the 
Ridge  avenue,  etc.^ 

When  the  Lynn  and  Boston,  Lowell,  Lawrence  and  Haver- 
hill street  railways  were  consolidated,  the  capitalization  was 
increased  from  $27,000  to  $60,000  a  mile,  or  about  125  per 
cent.,  nearly  the  whole  increase  of  which  was  water.  The 
West  End  consolidation  doubled  the  capitalization  of  the  Bos- 
ton companies,  and  as  their  capitalization  was  already  in  ex- 
cess of  the  cost  of  duplication,  it  is  a  mild  statement  to  say 

'  The  Boston  capitalization  is  over  4  times  the  New  York  and  nearly  5 
times  the  Chicago  capitalization,  tho  both  of  these  are  principally  water. 
In  1888  the  Boston  companies  had  an  output  of  1,161,000,000  feet  and  a  capital 
of  ?4,500,000,  or  a  little  less  than  if;4  per  M  of  output.  In  1898  they  have 
twice  the  output  and  23  times  the  capitalization  of  ten  years  before,  or 
11%  times  as  much  capital  per  M  instead  of  less,  as  should  be  the  case  with 
the  growth  of  the  output.  (See  figures  of  Prof.  Gray  and  Prof.  Bemis.  Mu- 
nicipal Monopolies,  p.  599.)  According  to  the  report  of  the  Gas  Commission 
for  1890,  the  capitalization  of  the  Boston  Gas  Co.  was  under  $2  per  thousand 
of  output,  while  the  Bay  State  Gas  Co.,  then  in  its  second  complete  year 
of  operation,  was  capitalized  at  $36  per  thousand. 

'According  to  figures  for  January,  1897,  given  by  Professor  F.  W.  Speirs, 
of  Drexel  Institute,  pp.  43,  47,  of  the  "Street  Railway  System  of  Philadel- 
phia," the  market  value  of  the  stock  of  all  the  street  railway  companies  of 
Philadelphia  exceeds  $120,000,000;  the  funded  debt  is  about  $12,000,000; 
the  amount  of  paid  capital  stock  is  about  $50,000,000,  and  the  total  cost  of 
the  construction  and  equipment  of  all  the  roads  is  about  $36,000,000,  or 
$76,400  per  mile  for  the  447  miles  of  track— $56,300  per  mile  if  the  cost  of 
paving  from  curb  to  curb  is  subtracted.  And  as  the  returns  to  the  Secretary 
of  State  refer  presumably  to  original  cost  the  present  cost  of  duplication 
is  probably  less  than  $50,000  per  mile.  The  par  capitalization,  or  amount 
of  debt  and  stock  at  par  values,  was  $108.301. 800.  or  $242,280  per  mile  of 
track,  nearly  5  times  the  actual  value.  The  market  capitalization  of  $132,- 
000,000.  or  $290,000  per  mile,  was  nearly  6  times  the  real  value  of  the  rail- 
way plant,  and  about  4  times  the  total  expenditure,  paving  and  all.  If  the 
debt  is  subtracted  from  the  total  duplication  value,  paving  and  all,  we  find 
water  in  the  stock  values  to  have  been  5  to  1. 

Since  Professor  Spiers  wrote,  the  Philadelphia  stocks  have  advanced  so 
as  to  increase  the  market  capitalization  $42,800,000,  for  which  $1,620,000 
must  be  subtracted  for  t-he  Hestonvllle  shares  owned  by  the  Union  Trac- 
tion,   leaving  $40,180,000  increase,   referable  to  the  447  miles  under  consid- 


4(j  THE  CITY  FOB  THE  PEOPLE. 

that  over  half  the  capitalization  of  the  West  End  in  1889  was 
baseless.  The  Massachusetts  Board  of  Railway  Commission- 
ers says  that  part  of  the  increase  of  $12,477  capitalization  per 
mile  "^for  all  the  Massachusetts  companies  in  1892-3  was 
"stock-watering  pure  and  simple,"  and  that  many  companies 
did  not  write  off  proper  depreciation^ 

The  three  leading  Chicago  street  railway  systems  have  a 
par  capitalization  of  $130,000  a  mile  of  track,  with  a  market 
valuation  of  about  $200,000  a  mile,  while  they  can  be  dupli- 


eratlon  wherefore  the  total  market  capitalization  Is  now  $380,000  per  mile. 
ILd  the  water  in  the  stock  values  7  to  1.  The  relat ions  be  ^^'een  stock 
values  and  the  amount  paid  In  are  shown  In  the  last  column  below. 

Street  Railicau  Stock  Values  and  Amounts  Paid  In. 

Relation  be- 
\raount  Market  Present      t«e*n  Stock 

WMK  OF  COMPWY.  Par  Value.      paid  in  Price.  M"''^'      yal««*  »■'<» 

>AMh  Oh    nuii-AM.  per  Share.        Jan.  1897.     Price'99    Amounts 

paid  in. 

Continental $50  $29.00  $131  |145  5  to  1 

Philadelphia  City 50  23.7o          172  208  8  to  1 

Philadelphia  and  Gray's  Ferry 50  2o.00            82i^  101  4  to  i 

Rldjre  Avenue  50  28.00           244  301  lU  to  i 

Thirteenth  and   Fifteenth   Sts 50  16.7o          227y2  311  1|  to  1 

FrankfordandSouthwark ....50  5O.0.  334  450       ^9  to  1 

Second  and  Third'  Sts'. '.'. 50  40.00  237  300         7  to  1 

Germantown  50  21.66  125  loO         7  to  1 

Gre^n  and  CoaVes  Sts.  .  • 50  15.00  I3234  140         9  to  1 

Philadelphia  Traction 50  50.00  69%  100         2  to  1 

Union  Traction  50  10.00  QVa  43         4  to  1 

Union  Traction  stock  is  the  chief  variable,  the  Union  Traction  being  the 
consolidating  companv,  that  has  gathered  all  the  rest  under  its  wings  and 
guaranteed  dividends  on  the  stock  of  the  absorbed  roads.  A  new  assess- 
ment of  $7%  a  share  has  been  made  by  the  Union  Traction,  making  tiie 
total  paid  in  $17%  Instead  of  $10,  as  in  1897.  The  other  figures  In  the  paid-in 
column  remain  the  same.  , 

The  company  has  6  cars  per  mile  of  track.  When  Prof.  Spelrs  wrote,  in 
1897,  the  Union  Traction  system  included  all  the  street  railways  in  Philadel- 
phia except  the  Hestonville  line.  The  next  year  that  was  brought  Into  the 
Union,  but  its  miles  and  capitalization  have  been  subtracted  from  present 
totals,  so  as  to  deal  with  the  same  system  Prof.  Spelrs  wrote  about. 

'  Since  then  something  has  been  done  toward  more  effectively  restricting 
overcapitalization  of  street  car  lines  in  Massachusetts,  and  the  average  capi- 
talization has  fallen  from  $53,000  per  mile,  in  1894,  to  $44,683  in  1897.  In 
the  central  states  the  average  capitalization  was  $91,500  per  mile  in  18U<. 
and  in  the  middle  states,  $1.38.600.  Prof.  Bemis  thinks  the  fair  capitaliza- 
tion in  Massachusetts  would  be  in  the  neighborhood  of  $35,000  per  mile, 
and  cites  the  splendid  road  in  Springfield  (with  3  cars  to  a  mile  and  180,864 
passengers  per  mile),  which  cost  $33,987  a  mile,  could  be  duplicated  for 
$31,500,  and  is  capitalized  at  $30,829  a  mile.  (Municipal  Monopolies,  p.  5.>5.; 
My  own  investigations  lead  to  the  conclusion  that  $25,000  to  $35,000  a  mile 
is  sufficient  for  a  trolley  road,  except  in  very  large  cities.  In  1896,  wiien 
the  West  End  claimed  about  !i:84,000  a  mile.  Mr.  E.  E.  Higgins  (Editor  of 
the  Street  Railway  Journal,  N.  Y.  city,  a  very  high  authority  entirely 
favorable  to  the  private  companies)  estimated  the  cost  of  duplication  for 
Boston  at  $62,682  a  mile  as  the  maximum  (St.  R'y  Jour.,  March,  1896).  He 
referred  to  this  estimate  as  high,  and  in  another  series  of  articles,  in  wliich 
the  companies  were  not  named,  but  identification  was  easy  by  the  data. 
he  said  the  system  might  possiblv  be  duplicated  for  60  per  cent,  of  its 
capitalization— about  $51,000.  Paving  would  add  probably  $8,000  a  mile. 
The  present  stock  and  bond  capitalization  is  $86,000  for  each  of  the  304 
miles  owned  by  the  company.  It  operates  315  miles  (300  overhead  trolley 
and  15  horse)  and  has  eight  to  nine  ears  per  mile. 


PUBLIC  OW^'ERSHIP  OF  PUBLIC  UTILITIES.  47 

cated  for  $60,000  a  mile.s  The  North  Chicago  Railway, 
worth  about  $60,297  a  mile,  is  capitalized  at  $146,346,  face, 
$246,000  market  value,  and  a^eesed  at  $5,000  a  mile.  The 
West  Chicago,  worth,  with  the  tunnels,  about  $61,70t),  is 
capitalized  at  $149,500  face,  $186,000  market  value,  and 
assessed  at  $5,445  a  mile.  Out  of  about  $50,000,000  of  stock 
issued  by  the  eighteen  companies  in  Chicago  and  its  suburbs, 
about  $31,000,000  is  pure  water  from  the  start.  In  a  num- 
ber of  companies  the  stock  is  all  water.  For  example,  the 
Chicago  and  Jefferson,  $1,000,000,  all  water;  the  Chicago 
Electric  Transit,  $1,500,000  stock,  all  water;  the  [North  Side 
Electric,  $1,500,000,  all  water;  the  North  Chicago  electric, 
$2,000,000,  all  water;  the  Cicero  and  Proviso,  $2,500,000 
stock,  all  water,  etc.^     Even  an  issue  of  bonds  is  sometimes 


«  Rppcit  of  Illinois  Bureau  of  Labor  Statistics  for  1896.  Report  of  Special 
Comniittft'  of  City  Councils  oh  the  Street  Railways  of  Chicago,  1898,  see 
folding  table  opposite  p.  70  and  also  p.  306;  Municipal  Monopolies,  pp.  513-4. 

The  Spec.  Com.,  p.  306,  states  the  par  capitalization  of  the  three  sys- 
tems at  33  million  stock  and  30  million  bonds,  63  million  total;  the  cost  of 
duplication,  ?28,858,000,  and  the  overcapitalization,  $34,400,000,  or  $70,600 
per  mile  each  for  the  487  miles  of  track.  The  North  Chicago  and  West 
Chicago  guarantee  30  to  35  per  cent,  dividends  on  stock  of  some  of  the  leased 
lines  (pp.  294-301). 

The  three  companies— "West  Chicago,"  "North  Chicago"  and  "Chicago 
City"— have  390  miles  overhead  trolley,  82  miles  cable  and  15  miles  horse, 
487  total.  The  Illinois  Bureau  of  Labor  Statistics,  1896,  went  into  the 
question  of  cost  in  great  detail  and  with  the  estimates  of  expert  engineers, 
real  estate  men  and  the  statements  of  street  railway  financiers  arrived  at 
the  following  conclusions:  (1)  That  at  the  maximum  the  cost  of  the  cable 
systems,  with  50  cars  to  the  mile  and  all  machinery,  power  houses,  etc., 
belonging  with  them,  would  average  $136,000,  aside  from  land  and 
tunnels,  while  $100,000  a  mile  was  probably  nearer  the  truth.  (2)  That 
$40,000  a  mile  was  ample  for  the  overhead  electric  systems,  aside 
from  land  and  tunnels.  (3)  That,  Including  land  and  tunnels,  $60,000  a  mile 
was  a  reasonable  estimate  of  the  cost  of  duplicating  the  whole  of  the  three 
systems,  electric,  cable  and  horse.  The  land  of  the  companies,  valued  by 
experts,  amounted  to  $7,000  a  mile  for  the  whole  system,  with  an  average 
of  twelve  cars  to  the  mile,  and  the  tunnels  averaged  $4,000  a  mile  when 
the  cost  was  spread  over  the  whole  487  miles. 

On  the  estimates  of  competent  engineers  and  statistics-  of  actxial  con- 
struction, the  Bureau  found  that  the  42%  miles  of  ordinary  construction 
on  the  five  L  roads  could  be  duplicated  for  $250,000  a  mile  of  double  track, 
Including  stations;  equipment  and  power  plant,  $75,000— $325,000  total, 
aside  from  right  of  way.  On  the  2V4  miles  of  loop,  $750,000  per  mile  was 
allowed  for  construction  and  $500,000  per  mile  for  "frontage."  The  average 
total  per  mile  was  $373,280  aside  from  damages  or  right  of  way. 

"In  not  a  single  instance  was  a  cent  paid  for  the  stock  (of  the  L  roads), 
an  aggregate  of  over  $49,000,000  of  water,  pure  and  simple."  Adding  up 
the  actual  receipts  from  sales  of  bonds  it  was  found  that  the  total  moneys 
received  by  the  L  companies  and  alleged  to  have  been  Invested  footed 
up  to  $33,203,000,  or  $754,000  per  mile,  the  difference  between  this  sum 
and  $373,280,  or  $380,(X)0,  representing  the  cost  of  the  right  of  way  and 
the    'millions   divided   among  the  original   promoters.'  " 

»  See  letter  of  Mr.  Vanderlip,  quoted  in  1896,  report  of  111.  Bureau  of 
Lab.  Statistics:  "I  find  in  an  examination  of  the  street  railway  companies 
that  there  is  a  total  of.  roundly,  $31,000,000  of  stock  issued  by  various  local 
street  railway  companies  that  represents  absolutely  no  investment.  The 
capital  stock  of  practically  all  the  street  railway  companies  organized  in 
the  last  few  years  represents  no  money  investment."  A  dozen  cases  of 
total  water,  such  as  those  cited  in  the  text,  are  then  stated,  and  also  the 
case  of  the  Chicago  Pass.  Ry..  which  "lias  $2,000,000  of  capital,  half  of 
which  is  paid  for  and  half  represents  no  Investment." 


48  THE  CITY   FOR  THE  PEOPLE. 

almost  wholly  water.  For  example,  $3,413,050  of  the 
$4,100,000  first  mortgage  bonds  issued  by  the  West  Chicago 
Street  Railway  Company  for  the  purchase  of  the  $625,100 
of  Chicago  West.  Div.  Ry.  stock  at  $650  a  share,  represented 
no  investment,  and  is  therefore  water  in  the  form  of  bonds.^^ 

On  the  five  L  roads  of  Chicago  there  was  put  a  capitaliza- 
tion of  $1,555,000  per  mile.  They  could  probably  be  dupli- 
cated for  $373,280  a  mile,  aside  from  righc  of  way,  and 
$754,000  a  mile  was  all  that  was  received  for  the  securities  of 
the  roads — all  there  was  to  cover  construction,  land  damages 
and  the  millions  divided  among  the  original  promoters.  One 
of  the  roads,  the  Lake  street,  had  $18,000,000  of  liabilities 
in  1896,  on  an  officially  stated  investment  of  $3,317,000 
for  7^  miles  of  road,  nearly  $6  of  liabilities  for  every  $1  of 
actual  cost. 

The  market  value  of  the  St,  Louis  street  railways  is  4^ 
times  the  actual  cost.^^ 

The  Milwaukee  trolleys  are  capitalized  at  $100,000  per 
mile  of  track  face  value  of  stock  and  bonds,  yet  the  company 
admitted  in  court,  May,  1898,  that  the  whole  plant  could  be 
duplicated  for  $36,037  per  mile.^^ 

The  Cleveland  roads  have  an  authorized  capital  of  $145,000 
per  mile,  have  issued  $136,000  a  mile,  only  claim  $66,600 
a  mile  houn  fide  investment;  could  be  duplicated  for  $29,000 
a  mile,  or  $39,000  a  mile  with  the  paving,  and  report  for  tax- 
ation only  $10,400  a  mile.^^ 

The  Capitol  Traction  Company,  Washington,  D.  C,  is 
capitalized  at  $333,300  a  mile,  and  could  probably  be  dupli- 
cated for  less  than  $125,000  a  mile.^^ 


1898°  p"  3(fl*  substantially  from  Rep.   Spec.   Com.  of  Chicago  City  Council, 

nf  T^nhnr//.  A?-  ^*''^?Mf^-  Franchises  by  Lee  Meriwether.  Commissioner 
Pn«r«S4i- nr^'^^"""'  1?96  p.  22.  Market  capitalization,  .S37,987,000;  actual 
Brooklyn  V^vn^V.So!?^^''*^  ''^''V,^'  54-246.000.  The  figures  relate  to  1895.  The 
lirooKiyn  Investigation   was  the  same  year. 

Rep"  IVir''"^*'*'    Electric    Ry.  &  L.  Co.    vs.    City    of    Milwaukee,    87    Fed. 
13  ..The  Street  Ry.  Problem  of  Cleveland,"  by  Dr.  Wm.  R.  Hopkins    1896 

fZe-  a  nni/Z°;LP.?-  ^^I-^^'  373-^170  miles  overhead  trolley  and  10  milea 
caoie,  a  little  more  than  4  cars  per  mile. 

mile*?fl'r''r.n^«Jrn?H.it"°  ^?-  "*  ,^'ashington  reports  to  Congress  ?105.660  a 
l^v  with  over  i4^l^nr=  ^1"lPn',<^nt.  etc.  of  its  22  miles  of  underground  trol- 
a  a"!;'ls"only'|l60.a)0Tm?/^*''  ""*"  ''''  ^«^"'  capitalization,  land,  Junk  pile 


PUBLIC  OWXEESHIP  OF  PUBLIC  UTILITIES.  49 

In  Toronto  the  $33,000  of  bonds  per  mile  is  probably  enuf 
to  duplicate  the  road  (overliead  trolley),  and  the  $66,000  of 
stock  per  mile  appears  to  be  all  water.  In  Brooklyn  it  ap- 
peared from  an  investigation  in  1895  that  the  stock  was  7 
water  to  1  solid,  and  by  the  returns  for  October,  1898,  it 
seems  that  the  whole  of  the  32  millions  of  stock  and  half  the 
21  milKons  of  bonds  have  no  basis  of  tangible  property,  but 
represent  the  capital  value  of  the  franchise  right  of  taxing 
the  people  beyond  the  fair  price  of  the  service  rendered.^  ^ 

The  following  table  represents  approximately  the  situation 
in  the  principal  street  railways  of  New  York: 

New  York  Street  Railway  Inflation. 

Cost  of  duplicat-   Probihle 
Xnminal  capl-     3(arket  capi-     ing  ihe  system       water  in 
talizatiOD  per       talization  per   probably  does       market 
mile  oftrack.        mile  of 'rack,    not  exceed  (per      capitaliza- 

mlle  of  track).       tion  is 
about 

Third  Avenue  Cable $526,316      ?1,080,000      |150,000         6  to  1 

Metropolitan  System  —  Lines 

owned  and  leased,   horse,   cable 

and  electric  472,700  640,000         90,000  6  to  1 

Metropolitan    lines    owned — cable, 

electric  and  horse 1,130,000       2,350,000       100,000       22  to  1 

The  Third  avenue  has  14  miles  of  road,  and  28  miles  of 
track.  It  claims  for  each  mile  of  track  $228,000  for  road 
construction,  $200,000  per  mile  for  equipment  (cars,  machin- 
ery, land,  buildings  and  fixtures),  and  $50,000  per  mile  for 
right  of  way.    But  these  claims  cannot  be  sustained. 

A  hig-h  official  of  the  company  testified  before  the  Special  Com- 
mittee of  the  New  York  Assembly  (1896,  Vol.  11,  p.  1164)  that  the 
cost  of  the  most  difficult  cable  construction  on  the  line  (as  difficult 
as  anj"^  in  the  city,  he  said)  had  footed  up,  aside  from  real  estate, 
less  than  $100,000  per  mil-e  of  double  track,  and  coiild  be  duplicated 
for  considerably  less  than  that.  On  some  streets,  where  the  diffi- 
culties were  less,  the  cost  had  been  only  about  $60,000  per  double 
mile.  So  that  the  company's  claim  of  $456,000  for  the  road  con- 
struction per  mile  of  double  track  is  5  or  6  times  the  true  value, 
according  to  the  evidence;  $50,000  a  mile  of  single  track  is  a 
maximum. 

As  to  the  second  item,  the  Illinois  Bureau  of  Statistics  (1896)  has 
shown  that  $90,000  a  mile  of  track  is  a  maximum  for  cars,  ma- 
chinery, po\s-er  houses,  storage  houses,  etc.,  on  a  cable  road  with  50 
cars  to  the  mile.  The  Third  avenue,  with  half  that  many  cars, 
should  not  figure  over  $60,000  at  the  outside.  Land  should  not  go 
beyond  $15,000  per  mile,  which  is  more  than  twice  the  value  found 


"  See  section   13,   Gaynor  note. 
4 


60  THE  CITY   FOR  THE  PEOPLE. 

by  the  Illinois  Bureau  for  the  Chieag-o  electric  and  cable  systems, 
with  an  average  of  12  cars  to  the  mile. 

An  estimate  of  $125,000  per  mile  of  track  for  everything  except 
the  right  of  way  would,  therefore,  seem  fair,  especially  in  view  of 
the  facts  First,  that  the  Columbia  Raihvay  Company  of  Washington 
has  built  and  equipt  a  first-class  cable  road,  with  7  cars  per  mile, 
at  a  cost  of  $85,850  per  mile  of  track,  aside  from  land,  and  Second, 
that  the  engineering  data  collected  by  the  Illinois  Bureau  indicate 
$100,000  per  mile  as  the  reasonable  cost  of  the  cable  systems  in  Chi- 
cago complete,  aside  from  the  land. 

As  to  the  claim  of  $50,000  a  mile  of  track,  or  $100,000  per  mile  of 
road  for  right  of  way,  it  may  be  noted  that  such  entries  are  of 
doubtful  character.  (See  Eep.  of  Spec.  St.  Ey.  Com.  N.  Y.  Assembly, 
1896,  p.  1095.)  The  Railroad  Commissioners  could  not  tell  me  of  anj^ 
sums  paid  to  the  city  or  state  for  the  franchise,  nothing  but  the 
annual  license  fees  and  taxes,  which,  of  course,  do  not  belong  in  the 
capital  account.  I  could  find  nothing  to  justify  this  entry  of 
$1,443,000  in  the  account  for  capital  expenditure,  so  I  wrote  to  the 
company  and  received  word  from  the  Secretary  that  "this  sum  does 
not  represent  the  specific  payment  to  the  city  for  rights  of  waj^ 
but  it  does  include  all  payments  made  since  the  incorporation  of 
the  company,  in  1853,  for  legal  services  and  other  services  and  expenses 
properlj-  chargeable  as  items  of  expense  for  rights  of  way."  The 
italics  are  mine.  In  the  case  of  the  Broadway  franchise  we  know- 
that  "legal  services  and  other  services  and  expenses"  in  obtaining 
the  right  of  way  cost  the  company  $500,000,  without  any  "specific 
payment  to  the  city,"  and  the  thing  got  out  and  the  railway  officers 
and  the  aldermen  were  indicted;  but  I  am  at  a  loss  to  understand 
how  any  legitimate  expenses  of  organization,  procurement  of 
charter,  etc.,  could  possibly  foot  up  to  $1,443,000.  As  a  matter  of 
fact,  most  of  the  city  companies  make  no  entry  for  the  cost  of  right 
of  way.    I  cannot  find  such  an  entry  even  in  the  Broadway  account! 

Suppose  we  allow  $200,000  for  organization  and  other  expenses 
properly  chargeable  to  right  of  way  (and  that  is  more  than  double 
the  cost  of  everything  in  this  connection  that  is  visible  to  the  pub- 
lic) ;  with  28  miles  of  track  that  would  be  $7,000  a  mile  for  "right 
of  way."  Then  we  shall  have  $132,000  total  cost  per  mile.  Even  if 
we  allow  $90,000  a  mile  on  the  second  item,  instead  of  $75,000,  we 
shall  still  have  but  $150,000  per  mile  of  track,  Avhich  is  less  than 
one-third  of  the  face  of  the  bonds  and  stocks  per  mile,  and  one- 
seventh  of  their  market  value. 

The  Metropolitan  Street  Kailway  Company  owns  50  miles 
of  track  (about  half  horse  and  half  cable  and  undergTOund 
electric)  and  leases  177  miles  (about  100  miles  horse  and  the 
rest  cable  and  electric). 

Horse  track  can  be  built  in  New  York  city  for  $6,500  a  mile. 
(Testimony  of  Secretary  of  the    Central    Crosstown,    one    of    the 


PUBLIC  OWNEKSHIP  OF  PUBLIC  UTILITIES.  51 

Metropolitan  roads,  Eep.  of  Spec.  Com.  N.  Y.  Legis.,  1896,  p.  1097. 
His  accounts  showed  $103,200  a  mile  for  construction  of  road,  which, 
he  said,  could  be  duplicated  for  $6,500  a  mile.)  Cars,  9  to  a  mile, 
$6,000  to  $7,000.  Horses,  40  to  60  per  mile,  $2,500  to  $4,500.  For  land 
and  buildings,  $18,000  per  mile  seems  a  liberal  estimate.  (See  be- 
low.) General  equipment,  office  furniture, organization  expenses  and 
other  incidentals  perhaps  $4,000.  A  total  of  $40,000  a  mile  at  the 
outside,  with  $30,000  to  $35,000  as  probably  nearer  the  real  values.* 

In  dealing  with,  the  electric  and  cable  roads  it  may  be  well 
to  st^te  a  few  facts  in  tabular  form:  cost  per 

Mile  of  Track. 

Electric  road  construction,  including  overhead  work $12,000 

IS.  Y.  Spec.  Assembly  Com.  Rep.,  1896,  pp.  694,  910,  973. 

Albany    trolley    track,    90    pound    girder    rails    (including 

$4,000  a  mile  for  overhead  work).  Spec.  Com.  Rep 11,477 

"Huckleberry  Road,"  with  90  pound  girder  rails  and  over- 
head construction  (Spec.  Com.) 11,000 

Metropolitan,   Kansas  City,   electric   road   construction 15,000 

Syracuse  trolleys,  $13,000  per  mile  of  track  and  $3,000  over- 
head, total  road  cost,  aside  from  paving 16,000 

(Testimony    of   officials    of   the   roads   to    Spec.    Com.) 

Springfield  trolley,  (Mass.),  (3  cars  and  180,808  passengers 
per  mile),  cost  of  the  system  complete,  road  construc- 
tion, equipment,  etc.,  entire  tangible  assets 33,503 

Could  be  duplicated  for  $31,500  a  mile.     (Co.'s  reports  , 

and  valuation  of  engineer  of  Mass.  Rd.  Comssn.) 

Calumet  Electric,   So.   Chicago,   complete 33,333 

(111.  Labor  Bureau  Rep.,  for  1896.) 

Chicago  General  Ry.,   complete 28,752 

(111.  Labor  Bureau.) 

North  Chicago  Electric  and  North  Shore,  complete 35,000 

(Mr.  Louderback  in  Mason,  Lewis  &  Co.'s  Investment 
Supplement,  Feb.,  1897.) 

Chicago  Electric  Transit,  complete,  with  power  machinery 

sufficient  for  many  contemplated  extensions 45,800 

(111.  Labor  Bureau.) 

Milwaukee  trolley  system  complete 36.000 

(Admission  of  Co.  in  Court.) 


♦See  Rep.  of  Special  Com.  N.  Y.  and  Mr.  Hlgglns'  estimate  la  Street. 
Ry.  Journal,  March,  '96.  Mr.  Hlgglns  gets  a  total  of  $45,000  a  mile  as  the 
cost  of  duplication  for  a  flrst-class  horse  line  in  a  giant  city,  but  he  esti- 
mates track  construction  at  $15,000,  horses  at  $100  each,  etc.,  his  figures 
being  considerably  above  the  cost,  as  shown  by  testimony  before  the 
Special  Committee,  by  the  statements  of  contractors,  and  in  many  instances 
by  the  reports  of  the  companies  themselves.  The  Central  Crosstown  of  New 
York,  for  example,  reports  the  cost  of  658  horses,  with  harness,  as  .«88.650, 
or  less  than  $59  per  horse.— Rep.  N.  Y.  Rd.  Com..  1898,  pp.  1314,  1.S17.  The 
Forty-second  street  road  reports  the  cost  of  145  new  horses  as  .$8,200.  or 
about  $56  each.— Ibid,  p.  1.332.  As  to  track,  gee  data  already  given.  Mr. 
Hlgglns  estimates  land  at  $10,000  and  buildings  at  $8,000  a  mile,  and  9  cars 
to  a  mile  $8,000.  The  real  estate  estimate  I  have  not  the  means  of  testing, 
but  the  Fort.v-second  and  Manhattan  reports  the  cost  of  190  horse  cars  as 
averaging  $630  each,  and  the  Second  avenue  reports  the  cost  of  375  cars 
as  averaging  $750,  and  250  of  the  cars  are  electric. 


62  THE  CITY  FOE  THE  PEOPLE. 

Cleveland  overhead  trolleys,  with  paving  $39,000  a  mile, 
probable    cost    of    duplication,    complete,    aside    from 

paving    29,000 

(Dr.  W.  K.  Hopkins). 

/hiladelphia  Traction  system,  complete,  maximum  cost, 
including  $20,000  a  mile  for  asphalt  and  granite  paving 
curb  to  curb,  $76,000,  (Prof.  Spiers) ;  probable  cost  of 
duplicating  road,  w^ithout  paving,   is  under.... 50,000 

West  End  Trolleys,  Boston,  maximum  $62,000  (E.  E.  Hig- 
gins,  St.Ry.  Jour.,Mar. '96,  figuring  track  and  overhead 
construction  at  $22,000  per  mile  of  track,  without  pav- 
ing, which  is  considerably  too  high),  cost  of  duplica- 
tion aside  from  paving  is  probably  not  above  $55,000  or 
at  the  outside    60,000 

Mr.  Badger  (Electrical  World,  Oct.  31,  1891),  gives  the 
average  total  investment  per  mile  of  track,  real  estate, 

road  and  equipment  for  45  horse  roads 31,093 

And  for  22  trolley  roads 27,780 

He  says:  "As  fine  and  substantial  roadbed  as  electric 
car  ever  ran  over  was  built  at  a  cost,  exclusive  of  pav- 
ing, of  about  $5,000  per  mile.  "Overhead  construction 
$2,500  to  $5,000,  with  iron  poles,  etc."  concluding  "Thus 
we  have  as  an  extremely  liberal  estimate,  $26,000  per 
mile,  exclusive  of  real  estate,  buildings  and  paving,  for 
a  road  suitable  for  the  heaviest  metropolitan  traffic." 
($7,000  of  the  estimate  was  for  cars.)  "And  it  is  a  fact 
that  a  good  and  satisfactory  road  can  be  built  and 
equipt  for  $20,000  a  mile." 

Estimated  cost  of  overhead  trolley  system  of  highest  char- 
acter in  giant  city,  complete  (aside  from  land,  with  5.7 

cars   per  mile) 70,000 

(Keport  of  Mr.  Pearson,  Engineer  of  the  Metropolitan 
Ey.  Co.,  New  York,  to  the  City  of  Liverpool,  1897.  For 
each  additional  car  per  mile,  add  about  $5,000). 

Cost  of  underground  trolley  system  of  highest  character 
in  giant  city,  complete,  aside  from  land,  with  5.7  cars 
pel    mile 96,000 

Metropolitan  Underground  Trolley,  Wash.,  reports  con- 
Bti-uction  and  equipment,  complete,  aside  from  realty 
(13   cars   per   mile) 105,660 

Cable  system  in  giant  city,  complete,  aside  from  land, 
maximum  estimates,  with   50  cars  per  mile,   and  full 

equipment,   average 140,000 

Reasonable  estimate,   omitting  old   cars,  etc 100,000 

(111.  Labor  Bureau  and  their  engineers.) 

Cable  road  construction  (testimony  of  Third  Ave.  officers, 
Eep.  N.  Y.  Spec.  Com.),  less  than  $50,000  a  mile,  Com- 
plete system,  aside  from  right  of  way 125,000 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  53 

Columbia  Cable  Ry.,  Washington,  reported  cost,  complete, 

(aside  from  land),  with  over  7  cars  per  mile 85,830 

Metropolitan  Cable,  Kans.  City,  $50,000  a  mile  road  con- 
struction,  $20,000   a  mile   machinery,   real   estate,   etc., 

with  6  cars  to  a  mile,  total 70,000 

(Mo.  Labor  Bureau,   citing-  St.   Ry.   Journal  and  Vice 
Pres.  Holmes,  of  the  Metropolitan  system.) 

Land  for  electric  and  cable  systems  in  g-iant  cities,  ave- 
rages $7,000  per  mile  of  track,  by  expert  estimates  of 
the  actual  possessions  of  the  leading  Chicago  Cos. 
"Eeal  Estate,"  (including  land  and  buildings,  except 
the  repair  shops),  is  stated  for  the  Metropolitan  St. 
Ry.,  of  Kansas  City,  as  $10,200  a  mile.  (Mo.  Labor 
Comssrs.  Rep.,  1896,  p.  56,  citing  the  St.  Ry.  Journal 
and  Vice  Pres.  Holmes,  of  the  Metropolitan  Ry.)  The 
West  End  Claims  $17,000  per  mile  for  "Real  Estate," 
which  means  land  chiefly  as  the  power  stations,  car 
houses  and  shops  are  named  in  other  items.  Mr.  E.  E. 
Higgins  (St.  Ry.  Journal,  Mar.  1896),  puts  land  at 
$9,000  a  mile  for  the  West  End,  eliminating  what  is 
not  needful  for  the  street  railway  system,  a  street  rail- 
way company  has  no  right  to  hold  a  lot  of  land  for 
other  than  street  railway  purposes  and  capitalize  it  as 
part  of  the  railway  system  for  passengers  to  pay  divi- 
dends on.)  If  $7,000  a  mile  covers  land  in  the  Chicago 
systems  and  $10,200  land  and  buildings  in  Kansas  City 
and  $9,000  the  land  required  in  Boston,  it  is  surely 
liberal  to  allow  for  land  in  New  York 15,000 

Some  data  relating  to  the  cost  of  L  roads  and  the  history 
of  the  Jklanhattan  Elevated,  of  New  York,  may  be  useful 
here: 

Elevated  road,  including  stations,  actual  cost,  in  Brooklyn, 
1892-3,  $297,000  per  mile  of  double  track;  could  be  du- 
plicated perhaps  for  $250,000.  Equipment  returned  by 
N.  Y.  L  roads,  $124,000  per  mile,  double  track.  Total 
per  mile  of  single  track,  therefore  not  over 210,000 

Cost  of  L  roads  in  Chicago,  according  to  111.  Labor  Bureau, 
for  entire  L  system,  road,  stations,  cars,  buildings, 
land  and  all,  $325,000;  for  straight  road,  including 
loops,  $373,280  per  mile,  double.  Per  mile  of  single 
track  this  would  indicate    190,000 

For  the  proiiosed  Boston  Elevated  (13.4  miles  of  road),  the 
engineers  of  the  ISIass.  Rapid  Transit  Comssn.  (Rep. 
1892,  pp.  85,  251)  estimated  road  construction  without 
stations  at  $443,000  per  mile  of  road;  passenger  stations, 
$100,000;  shops,  yards,  trains,  coaling  and  watering 
stations,  eqiiipment  entire,  $157,000.  Land  damages, 
$51,000.     Total,   $751,000   per   mile   of  road.     Indicating 

for  construction  per  mile  of  single  track 350,000 

And  for  land   damaq-es 25,500 


64  THE  CITY  FOR  THE  PEOPLE. 

The  Engineer  of  the  Boston  L  Co.  estimates  for  10  miles 
of  road  electrically  equipt,  $297,000  a  naile  for  road, 
$389,000  for  stations  and  equipment,  and  $300,000  to 
$500,000  a  mile  for  land  damages.  A  total  of  about 
$1,000,000  a  mile  of  road  or  per  mile  of  track,  aside 

from   land   damages    345,000 

And  for  land  damages 300,000  to      400,000 

The  difference  as  to  the  land  damages  between  the 
company  engineer  and  the  state  engineer  seems  very 
great,  but  as  I  do  not  know  the  details  of  the  com- 
pany's estimate,  I  cannot  compare  it  with  the  other. 

In  the  light  of  these  facts  the  history  of  the  New  York  L 
roads  is  of  much  interest  to  the  student  of  overcapitalization. 

In  1879  the  New  York  Elevated  and  the  Metropolitan  Elevated 
were  practically  consolidated  in  the  hands  of  the  Manhattan  by 
leases  for  999  years.  The  Manhattan  agreed  to  pay  to  each  of  the 
old  companies  interest  on  8%  millions  of  bonds  and  6V2  millions 
of  stock,  and  issued  13  millions  of  its  own  stock  for  jiro  rata  dis- 
tribution among  the  stockholders  of  the  old  companies,  making  the 
total  capitalization  43  millions  upon  an  actual  capital  expenditure 
of  221/2  millions.  Subtracting  the  bonds  we  find  that  23  millions 
of  stock  represented  about  514  millions  of  capital  expenditure^ 
4  times  the  original  cost  and  probably  over  5  times  the  present 
value.  The  stock  of  the  old  companies  was  largely  water,  and  the 
$13,000,000  issued  by  the  Manhattan  was  "only  a  pyramid  of 
water  on  a  pedestal  of  transparent  fraud."  (Report  of  the  Board 
of  Railway  Commissioners,  Assembly  Doc.  No.  162,  1883.) 

The  stock  and  bonds  of  the  Manhattan  now  amount  to  86  mil- 
lions face  and  95  millions  market  value,  or  $2,640,000  per  mile  of 
double  track,  yet,  as  we  have  seen,  it  could  probably  be  duplicated 
for  $500,000  or  $600,000  per  mile  of  road  (or  $700,000  at  the  very 
outside),  plus,  perhaps,  $50,000  to  $200,000  land  damages— a  total 
cost,  say,  of  $400,000  per  mile  of  single  track.  This  estimate,  how- 
ever, must  not  be  taken  as  having  anything  like  the  conclusiveness 
of  the  valuations  of  horse  and  electric  roads,  because  of  the  indefinit- 
ness  of  the  land  damage  items.  There  is  a  chance  here  for  some 
one  to  make  a  valuable  contribution  to  the  science  of  this  subect 
by  ascertaining  what  the  L  roads  of  New  York  actually  did  pay 
for  land  damages. 

Returning  to  the  surface  lines  let  us  study  the  leading 
system  in  the  light  of  the  data  tabulated  above. 

The  Metropolitan  system  has  8  cars  per  mile  on  the  horse 
lines  and  an  average  of  14  on  the  cable  and  electric.  Taking 
the  highest  applicable  figures  indicated  by  the  above  data, 
with  allowance  for  legitimate  organization  and  franchise  ex- 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  55 

penses,^^  we  have  a  maximmn  of  $40,000  a  mile  horse  and 
$150,000  a  mile  cable  and  electric  for  the  cost  of  duplication.^" 
This  gives  an  average  value  of  $95,000  per  mile  of  road 
owned,  call  it  an  even  $100,000.  Taking  the  whole  system  as 
125  miles  horse  and  104  miles  cable  and  electric,  the  high- 
est figures  given  for  either  sort  of  road,  the  average  value  per 
mile  of  track  would  be  under  $90,000.  The  stock  and  bonds 
of  the  Metropolitan  and  the  leased  lines,  less  the  securities  of 
the  leased  lines  held  bv  the  Metropolitan,  gives  an  outstanding 
face  capital  of  $472,700  per  mile  of  track,  and  at  present  quo- 
tations the  market  capitalization  is  $640,000  per  mile  of  track, 
or  7  times  the  true  value.  The  bonds  and  stock  of  the  Metro- 
politan Company  alone,  after  subtracting  its  holdings  in  the 
bonds  and  stocks  of  leased  lines,  etc.,  gives  a  face  value  capital- 
ization of  $1,130,000  per  mile  of  track  owned,  and  the  market 
capitalization  is  $2,350,000  per  mile  of  track  o^vTied,  or  more 
than  23  times  the  real  value. 

The  way,  or  rather,  one  way,  in  which  large  overvaluations^ 
arise,  was  explained  to  the  Special  Committee  of  the  New- 
York  Legislature  by  Mr.  Caswell,  bookkeeper  of  the  Albany - 
Railway.  He  said  that  the  size  of  the  construction  account 
was  due  to  the  fact  that  it  had  been  receiving  all  the  charges 
for  construction  since  the  road  was  first  built — everything 
that  went  into  the  road,  buildings,  stables,  power  house,  etc., 
since  1863;  one  expenditure  piled  upon  another,  with  no 
subtraction  for  depre<?iation  or  extinction  of  property,  so 
that  the  capital  account  represented,  not  the  present  real 
value  of  the  plant,  but  that  value  plus  the  value  of 
dead  horses,  worn  out  machinery  and  old  tracks  long 
since  torn  up.      (Special  Report  St.  Rys.   N".  Y.,  1896,  pp. 


'"  So  far  as  I  can  learn,  the  Metropolitan's  claim  for  rigrbt  of  way  is  very 
small.  I  have  several  annual  reoorts  of  the  New  York  Railroad  Commis- 
sioners, and  find  that  only  two  of  the  twenty-live  lines  in  the  system  make 
any  entry  for  franchise  or  right  of  way  in  their  returns,  and  it  is  well  known 
that  the  companies  did  not  pay  either  city  or  state  for  their  privileges  any- 
thing except  their  yearly  taxes  and  license  fees.  In  one  case  we  know 
that  the  right  of  way  did  cost  ?500,000,  but  it  was  paid  to  the  aldermen  and 
lobbyists,  and  Is  not  entitled  to  be  considered  as  part  of  the  legitimate  cost 
of  duplication.  (See  Report  on  the  Broadway  Surface  Railroad  Co.,  New 
York  Senate  Doc,  No.  79,  1886.)  There  is  no  entry  for  right  of  way  in  the 
company's  accounts,  but  there  is  an  entry  for  "Overhead  and  undergroutid 
construction,  superintendence  and  organization  expenses,  law  expenses,  etc., 
$4,130,464,"  and  perhaps  the  $500,000  comes  in  there. 

"  The  real  value  of  a  railway  s-ystem  is  below  the  cost  of  duplication. 
New  cars  and  rails,  etc.,  are  worth  more  than  those  that  are  partly  worn  out.. 


56  THE  CITY  FOR  THE  PEOPLE. 

t)95-6;  see  also  p.  1096.)  The  valuations  returned  by  the 
companies  include  the  cost  of  all  preceding  roads  in  tlie  same 
location,  along  with  the  cost  of  the  present  road,  and  some- 
times other  items  not  mentioned  bj  Mr.  Caswell. 

Looking  at  the  facts  of  the  preceding  section  about  profits, 
and  of  the  present  section  on  overcapitalization,  it  is  no  wonder 
that  Mr.  E.  E.  Higgins,  Editor  of  the  Street  Railway  Journal 
and  author  of  "Street  Railway  Investments,"  advises  investors 
that  street  railways  in  large  cities  "are  among  the  safest  and 
most  profitable  in  the  entire  range  of  capital  investment, 
*  *  *  dividends  on  stocks  being  with  few  exceptions  regu- 
lar and  satisfactory,  in  spite  of  the  extreme  overcapitalization 
of  costs." 

If  the  bonded  debt  of  the  Western  Union  Telegraph  Com- 
pany is  subtracted  from  the  cost  of  duplicating  the  operative 
plant,  the  water  in  the  stock  appears  to  be  about  18  to  1.^* 
The  Sugar  Trust  bought  the  Brooklyn  refineries  at  30  times 
their  former  capitalization,  making  the  payment  in  sugar 
stock,  which  is  now  quoted  at  120  preferred  and  180  common, 
so  that  the  water  in  the  present  market  capitalization  repre- 
senting that  transaction  is  probably  not  less  than  40  to  1. 
When  the  nominal  stock  of  the  Sugar  monoiKrly  was 
$75,000,000,  Henry  D.  Lloyd  said  it  was  all  water,  as  the 
value  of  the  plants  was  more  than  covered  by  the  $10,000,000 
of  bonds.^® 

According  to  a  member  of  the  Congressional  Committee 
that  investigated  the  Oil  Trust  in  1888,  $6,000,000  was  the 
value  of  the  "works"  on  which  the  trust  had  issued  $90,000,- 
000  of  stock,  which  sold  in  the  market  at  a  valuation  of  $160,- 
000,000.20  The  stock  now  amounts  to  more  than  $97,000,000 
nominal  or  face  value,  and  it  is  selling  at  525,  wliich  gives  it 


^"  The  Telegraph  Monopoly,  Arena,  March,   '96. 

i»  "Wealth  against  the  Commonwealth,"  p.  33,  citing  legislative  investi- 
gations. 

The  American  Newspaper  Publishers'  Association  has  made  a  statement 
signed  by  157  daily  newspapers  to  the  effect  that  the  entire  output  of  the 
Paper  Trust  could  be  produced  by  a  present  investment  of  $15,000,000;  sn 
American  consumers  of  newspapers  are  forced  to  pav  dividends  on  an  in- 
flated and  wholly  fictitious  capitalization  of  at  least  $40,000,000. 

The  market  capitalization  of  the  Tin  Plate  Trust  is  $29,000,000,  and 
Its  properties  are  worth  about  $12,000,000.  (Review  of  Reviews,  Vol.  XIX, 
pp.  686-7.) 

«>  Lloyd,  p.  82. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  57 

a  market  value  of  $509,250,000 — ^over  a  half  billion  of 
value,  most  of  which  represents  nothing  but  the  monopoly 
privilege  of  taxation  without  representation. 

Take  the  Red  Manual  of  Haven  and  Stout  or  the  Hand 
Book  of  Securities,  DeHaven  and  Townsend,  40  Wall  street, 
and  run  your  eyes  down  the  columns  of  quotations  of  the  va- 
rious bonds  and  stocks.  Whenever  you  find  a  specially  high 
quotation,  turn  to  the  name  opposite  the  figure,  and  almost 
always  you  will  find  a  gas  company  or  street  or  steam  railroad, 
telegraph  or  telephone,  or  a  trust  or  some  other  recognized  mo- 
nopoly, or  else  a  banking  institution.  Consolidated  Gas,  213; 
Chicago  and  Alton,  170;  Equitable  (?)  Gas,  213;  Commer- 
cial Cable,  180;  I^ke  Shore,  215;  Metropolitan  Street,  260; 
New  York  Mutual  (?)  Gas,  290;  Pennsylvania  Goal,  350; 
Pullman  Car,  216;  Sugar,  180;  Oil,  490;  U.  S.  Trust  Co., 
1,290;  N^ew  York  Life  and  Trust,  1,275;  Central  Trust, 
1,411;  Fifth  Avenue  Bank,  3,205;  Chemical  Bank,  4,150— 
such,  are  some  of  the  figures  that  meet  us  as  we  run  over  the 
columns.  $4,150  is  a  pretty  good  market  price  for  a  share 
whose  par  value  is  $100.  You  may  issue  $4,000  of  stock  for 
every  $100  paid  into  the  business,  or  you  can  issue  $100  of 
stock  and  let  the  excess  of  profits  of  your  monopoly  of  po- 
sition, infiuence  or  possession,  swell  it  to  $4,000  of  market 
values,  or  you  may  overissue  in  part  and  let  the  stock  swell  the 
rest  of  the  way  up  to  your  profits.  In  either  case  your  capital- 
ization is  inflated.  If  your  business  is  regarded  as  semi-public 
by  the  people,  and  they  show  an  interest  in  examining  your  ac- 
counts, it  is  safer  to  overissue  the  stock.  If  gas  consumers  saw 
on  the  face  of  the  returns  that  they  were  paying  20,  30  or  60 
per  cent,  on  the  money  actually  invested,  they  would  be'  rush- 
ing to  the  Commissioners  to  have  the  rates  reduced.  But 
issue  a  lot  of  stock  and  get  it  into  the  hands  of  "innocent  pur- 
chasers" and  you  are  comparatively  safe. 

Senously  the  inflation  of  capital,  or  watering  of  stock  of  the 
inanimate  order,  is  a  most  pernicious  practice,  protecting  the 
enormous  extortions  of  monopoly  by  hiding  them  from  the 
people,  checkmating  reduction  of  -fares  by  commissions  or 
boards  of  regulation  by  confronting  them  with  the  innocent 


68  THE  CITY  FOR  THE  PEOPLE. 

holders  of  purchased  stock,  and  compelling  the  people,  when 
they  come  to  buy  the  plant,  to  pay  several  times  its  value. 

FALSE  STATEMENTS  AND  SUPPKESSION   OF   FACTS. 

4.  False  accounting,  misleaiHng  statements  and  suppres- 
sion of  important  facts  are  favorite  methods  of  keeping  the 
people  in  the  ignorance  so  neceesary  to  the  continued  exis- 
tence of  the  great  monopolies.  The  monopolists  know  that 
their  mastery  over  the  people  conld  not  last  one  single  day 
if  the  people  knew  what  they  know. 

Various  instances  of  this  evil  of  deception  by  commission 
and  omission  have  already  been  given.  We  have  seen  the 
private  water  companies  refuse  to  state  their  expenses  and 
profits.  We  have  found  gas  companies  and  street  railways 
rejiresenting  their  values  at  many  times  tlie  real  figures,  and 
stating  the  cost  of  construction  at  2,  3,  5,  10,  even  16  times  the 
truth.  In  fact  the  whole  section  on  overcapitalization  is  in  evi- 
dence here  since  the  paying  of  apparently  moderate  dividends 
(5  or  6  per  cent.,  perhaps)  on  an  inflated  valuation,  which 
makes  the  real  dividend  on  actual  value  an  immoderate  one 
(20,  50,  200  per  cent.,  perhaps),  is  in  itself  a  most  serious  form 
of  suppression  and  deception.  A  few  examples  on  other  lines 
may  be  of  use. 

We  have  seen  the  Bay  State  Gas  capitalized  at  $5,000,000  on  an 
actual  investment  of  $750,000,  which  was  the  whole  capital  expen- 
diture down  to  1893,  according-  to  the  proof  in  the  Matthews  In- 
vestigation.^ 

We  may  note  here  tlie  mass  of  contradictions  presented  by  the 
company's  statements  to  state  officials: 

Valuations  of  Bay  State  Gas  Property  as  per  Official  Returns. 

Sworn  Returns  Sworn  Htiun.s  Sworu  Returns  A<-cssor~' 

Year  to  Tax  to  Secretary  to  Gas  Valuations 

ConimisBionori  of  Siate  Commissioners 

1886  $25,000.00  ?725,956.16  $725,956.16  $76,000 

1887  500,000.00  876,956.16  876,956.16  202,000 

1888  500,300.00  770,317.28  833,912.91  501,300 

1889  500,300.00  779,451.52  4,974.554.74  526,300 

1890  500,300.00  5,047,145.24  5,038,726.49  526,300 

1891    4,972,191.49  5,141,774.12  5,130,732.10  631,500 

1892    5.022,773.28  5,193,149.33  5,125,006.44  661,500 

The  investigation  resulted  in  a  sort  of  compromise  compelling 
the  company  to  cut  down  its  capitalization  to  two  millions.     Just 

*  Report  01  Bay  State  Gas  luvestigation.  City  Print,  1893,  p.  47. 


PUBLIC  OWXERSHir  OF  PUBLIC  UTILITIES.  59 

before  this  was  done  the  company  reported  to  the  Gas  Commission 
(p.  162,  Rep.  of  Jan.,  1894): 

BAY    STATE   GAS    COMPANY. 

Real  Estate  i 

Machinery  and  Manufacturing  Appliances..    >  S4.954.330. 
Street  Mains   j 

Now  the  investigation  did  not  change  the  real  estate,  machinery 
or  pipes,  but  only  the  paper  capitalization,  j-et  the  company's  next 
report  to  the  Gas  Commission  (Eep.  of  Jan.,  1895,  p.  xi,  App.  A) 
contains  the  following: 

BAY    STATE   GAS   COMPANY. 

Ileal  Estate  "i 

Machinery  and  Manufacturing  Appliances. .  .V  91,056.379. 
Street  Mains   j 

The  land,  buildings,  machinery  and  pipes  had  shnink  three  mil- 
lions in  one  year  because  the  legislature  had  cuOhe  bogus  bond 
and  forced  down  the  capitalization  by  the  said  amount.^  The  as- 
sessors did  not  appear  to  find  any  change  in  the  property,  for  they 
assessed  it  at  $661,500  after  the  bond  reduction,  the  same  as  before. 

In  1892  the  cost  of  gas  in  the  holders  in  Boston  was  33.3  cents 
per  M,  and  the  cost  of  distribution  19.4  cents,  yet  the  Bostdn  Com- 
pany reported  these  costs  as  $1.02,  instead  of  52.7  cents.^  The 
Gas  Commissioners  knew  the  truth,  but  suppressed  it.  When  the 
Investigating  Committee  appointed  by  the  legislature  ordered  the 
Commissioners  to  supply  information,  the  Hon.  George  Fred. 
Williams,  counsel  for  the  city  of  Boston,  went  to  the  office  of  the 
Commisssioners  to  get  a  copy  of  the  returns  of  the  gas  companies. 
A  clerk  brought  the  copy  and  gave  it  to  one  of  the  Commissioners, 
who  took  it  and  tore  out  the  last  leaf,  saj'ing  to  the  clerk,  "What 
did  you  put  that  in  for?"  ^ 

That  leaf  contained  a  statement  of  the  actual  cost  of  making 
and  distributing  gas,  and  it  was  only  with  the  greatest  difficulty 
that  Maj'or  Matthews  and  Mr.  Williams  succeeded  in  obtaining  the 
facts.  The  companies  did  not  wish  the  people  to  know  the  truth, 
and  the  Commissioners  allowed  false  statements  to  go  out  to  the 
people  year  after  year  in  their  reports;  refused  to  allow  examina- 
tion of  these  returns,  tho  a  part  of  the  public  records  of  the  office; 
kept  the  facts  to  themselves  during  suits  for  reduction  of  rates, 
protecting  the  companies  from  just  reductions  and  entailing  a 
waste  of  time  and  money  that  would  have  been  unnecessary  if  the 
facts  knoAATi  to  the  Commissioners  had  been  brought  to  light  and 
acted  upon;  sought  to  suppress  the  facts  even  when  ordered  by 
legislative  authority  to  supply  them,  and  after  all,  when  the  "ver- 
batim" report  of  the  investigation  was  published  under  authority 
of  the  state,  all  these  vastly  important  data  were  omitted,  and 
Mayor  ^latthews  had  to  have  a  corrected  edition  of  the  report 
published  by  the  city  in  order  to  get  the  facts  to  the  people. 


'  See  Municipal  Monopolies,  p.  589. 

=  See  the  City  Report  of  the  Investigation  issued  by  the  Mayor,  1893,  pp. 
21.  17,  14.  9. 


60  THE  CITY  FOR  THE  PEOPLE. 

The  West  End  Street  Railway  Company,  of  Boston,  for  several 
years  reported  an  average  operating  cost,  with  electric  traction,  of 
25.8  cents  per  car  mile,  while  the  reports  of  companies  in  New 
York,  Buffalo  and  Chicago,  and  the  statements  of  railway  officials 
in  Philadelphia  and  New  York  showed  the  cost  in  those  cities  to 
be  10  or  11  cents,  or  12  cents  at  the  outside.  The  West  End  reports 
gave  a  higher  operating  cost  per  car  mile  with  electric  traction 
than  was  shown  for  horse  traction  by  the  former  reports  of  the 
same  company.  This  was  absurd  for  it  was  well  known  that  elec- 
tric traction  was  much  cheaper  than  horse  power.  To  cap  the 
climax,  the  general  manager  of  the  West  End  told  a  committee 
from  Glasgow  that  electric  traction  had  reduced  the  company's 
car  mile  operating  expenses  20  per  cent.'  One  of  the  street  railway 
circulars  prepared  by  the  writer  and  issued  by  The  Citizens'  Com- 
mittee called  attention  to  the  contradiction,  and  the  next  year  the 
West  End  report  was  so  adjusted  as  to  show  a  car-mile  cost  about 
1-5  below  the  old  horse  reports,  but  still,  in  all  probability,  very 
much  above  the  truth,  as  were  also  the  old  reports.^ 


^  Rep.  of  Glasgow  Com.  on  Mechanical  Traction,  1896,  p.  25. 

*  See  The  People's  Highways,  Arena,  May,  1895,  for  several  other  im 
probable  statements  in  ^\'est  End  reports.  The  portion  of  the  circular 
referred  to  above  was  substantially  as  follows: 

The  West  End  reports  an  operating  cost  in  1896  of  24.5  cents  a  car 
mile,  and  its  reported  cost  of  operation  from  1891  to  1896  inclusive  gives 
an  average  of  25.8  cents  a  car  mile  with  electric  traction,  or  more  than 
twice  the  cost  in  New  Yorl£,  Philadelphia  or  Chicago.  How  can  it  be?  It 
is  not  the  long  .cars,  for  Philadelphia,  New  York,  Chicago,  etc.,  have  the 
long  car — it  cannot  be  wages,  for  New  York  electrics  pay  as  much  as 
the  West  End,  and  Detroit  wages  are  almost  the  same;  it  cannot  be  the 
cost  of  coal,  for  the  difference  due  to  this  cause  should  not  exceed  1 
cent  on  each  car  mile  as  between  Boston  and  New  York,  Rochester,  Buffalo 
or  Detroit.  It  may  be  difficult  to  believe  that  the  company's  reports  are 
Incorrect,  but  it  is  quite  as  difficult  to  believe  that  the  legitimate  cost  of 
electric  traction  in  Boston  under  good  management  should  be  as  much  as 
the  reported  cost.  Not  only  do  the  data  of  other  roads  oppose  such  a 
conclusion,  but  the  West  End's  own  reports  are  equally  conclusive  against 
It.  In  1889  the  company  reported  the  car  mile  cost  as  24.7  cents,  96  per 
cent,  of  the  mileage  being  made  with  horses.  In  1888,  the  whole  mileage 
being  with  horses,  it  reported  the  cost  of  operation  as  24.8  cents  per  car  mile. 

Now  it  is  a  universally  recognized  fact  that  the  operating  cost  with 
electric  traction  Is  much  less  than  with  horses.  Mr.  C.  L.  Rossitur, 
President  and  General  Manager  of  the  Brooklyn  Heights  Companv,  savs 
that  the  car  mile  cost  with  the  trolley  is  about  half  the  cost  with  horses. 

Mr.  J.  S.  Badger,  in  the  Electric  World  for  October  31,  1891,  brings 
together  the  statistics  of  22  trolley  roads  and  45  horse  roads  and  shows 
that  the  average  cost  with  electric  traction  is  less  than  one-half  the  average 
with  hoiise  power— these  averages  will  not  permit  as  precise  a  conclusion  as 
is  possible  where  the  two  modes  of  traction  are  tried  In  the  same  cltv, 
°^\  ^"f7  "'^^'•^  much  weight  as  tending  to  corroborate  the  specific  statements 
of  leading  experts. 

4.U  P^^sident  Vreeland  of  the  Metropolitan  Companv,  New  York  City,  savs 
that  if  he  could  have  the  trolley  he  could  easilv  operate  at  12  cents  a  car 
mile,  the  sixteen  million  car  miles  that  now  cost  him  17  cents  ivith  horses. 
fclectrle  experience  in  New  York  indicates  that  he  would  have  been  justified 
In  placing  the  cost  of  the  trolley  mile  below   12  cents. 

The  Special  Committee  of  Glasgow  that  went  to  many  cities  for  the 
express  purpose  of  comparing  electric  travel  with  horse  travel,  savs  on  page 
dy  or  their  report  that  the  testimony  everywhere  was  that  electric  traction 
8  cheaper  than  horse  power,  and  that  its  adoption  results  in  a  marked  and 
Immediate  increase  of  the  traffic;  34  per  cent,  in  Hamburg.  50  per  cent. 
In  Rouen,  etc  ,  thus  conferring  a  double,  benefit  on  the  companies. 
^*  *T^*""-S.P1''U^*1  ?f' "  '^  ^^^  statement  that  Mr.  Sergeant.  General  Manager 
T?  M  li^^*  End  Street  Railway,  made  to  the  Glasgow  Committee  (Glasgow 
J.»n^'.„^P*"'\^*'^^?i''^''',l^^^'  P-  25).  to  the  effect  that  the  adoption  of 
^ifflif  ""  °"*^  ^^^^^  ^'  !'«'■  <^ent.  to  the  revenue,  and  "reduced  the 
^?^r^.!  u^M^^P^'S^ff  P»';  car  mile  by  20  per  cent."-a  statement  in  strong 
contradiction  of  the   West   End  reports 


PUBLIC  OWXEKSHIP  OF  PUBLIC  UTILITIES.  61 

The  Boston  Kapid  Transit  Commission  found  that  the  Manhat- 
tan Elevated  of  New  York  charged  up  new  construction  to  ope- 
rating expenses.'  Their  construction  account  is  full  enough  to  get 
along  without  feeding  for  a  long  time,  and  it's  just  as  well  not  to 
let  the  people  know  that  a  2-cent  fare  is  more  than  enough  to  cover 
the  normal  cost  of  operation  on  a  well-constructed  L  road  in  one  of 
our  big  cities.^ 

Sometimes  when  the  people  or  their  officers  demand  an  investi- 
gation the  monopolists  succeed  in  packing  the  committee.  A  fla- 
grant case  of  this  sort  occurred  in  Philadelphia  in  1894.  Mayor 
Stuart  asked  councils  to  make  an  appropriation  for  a  municipal 
electric  light  plant.  Councils  were  dominated  by  the  Electric 
Trust,  the  president  of  one  of  the  chief  companies  being  a  leading 
councilman,  and  many  others  being  interested  more  or  less,  so 
they  did  not  wish  to  do  as  the  Mayor  desired.  They  could  not 
afford,  however,  to  ignore  a  request  behind  which  there  was  so 
much  force  of  reason  and  public  sentiment,  so  they  called  for  esti- 
mates of  cost  and  appointed  a  committee  loaded  with  men  inter- 
ested in  and  acting  for  the  electric  companies. 

The  Director  of  Public  Works  and  Chief  Walker,  of  the  Electrical 
Bureau,  returned  careful  estimates,  showing  that  a  2000  full-arc 
plant  could  be  built  for  $318  per  arc  and  operated  for  $58.50  a  year, 
or  $72,  including  depreciation  (3  per  cent,  on  %  of  the  plant,  which, 
the  chief  said,  was  sufficient),  taxes  and  insurance  (at  1  per  cent, 
each).  Interest  would  add  $9.50  more,  making  $81.50  total,  an  esti- 
mate which  was  high,  as  the  chief  said  he  intended  it  to  be.  The 
chairman  of  the  committee  (in  reality  an  attorney  of  the  Electric 
Trust),  instead  of  conducting  the  investigation  in  a  judicial  man- 
ner, instituted  a  determined  attack  upon  Chief  Walker  and  Director 
Beitler  and  their  recommendations,  endeavored,  in  every  way, 
to  magnify  the  cost,  and  gave  the  closing  argument  to  Mr.  Cowling, 
manager  of  a  company  a  large  part  of  whose  business  would  be 
gone  if  he  could  not  keep  the  city  from  making  its  own  light,  and 
who  testified  that  the  cost  of  an  arc  light  per  year  was  $146  (a 
statement  shown  to  be  utterly  false  by  overwhelming  testimony 
in  the  Senatorial  Investigation,  already  referred  to,  in  the  same 
city  the  following  year).  The  councils  refused  to  make  an  appro- 
priation, as,  of  course,  they  intended  to  do  when  they  packed  the 
committee  with  the  enemies  of  the  measure,  and  to  justify  their 
refusal  the  ridiculous  figures  of  Mr.  Cowling  and  the  chairman's 
nonsense  were  printed  in  pamphlet  form  and  spread  broadcast; 
Mt  the  chief's  estimates  were  not  put  into  the  pamphlet.^ 

The   publication   of   false   statistics   and   the   making   of   solemn 


*  Report  of  Rap.  Tr.   Commission  of  Mass.   Legislature,  1892,  p.  91. 

'  See  estimates  of  engineers  placing  operating  cost  on  the  proposed  Boston 
L  at  38  or  39  per  cent,  of  receipts  on  a  5-cent  fare,  or  less  than  2  cents 
for  operation   (Rep.    Mass.    Rap.   Transit   Com.,   p.   90). 

3  Arena.  Vol.  14,  pp.  457-8.  See  Journal  of  Select  Council  of  Philadelphia, 
Oct.  5,  1893,  to  March  30,  1894,  for  the  full  record. 


62  THE  CITY   FOK  THE  PEOPLE. 

aftinnntions  that  gas,  electric  light,  transit,  etc.,  cost  as  much,  or 
almost  as  much,  as  the  existing  charges  of  the  companies  con- 
stitutes a  favorite  pastime  of  the  monopolists.  Rarely  has  a  city 
begun  to  talk  of  public  ownership  but  that  the  movement  has  been 
met  by  assertions  of  the  private  companies  that  under  the  particu- 
lar conditions  in  that  city  the  service  cost  about  as  much  as  was 
being  charged  for  it,  and  that  the  city  would  lose  money  if  it  went 
into  the  business;  and  rarely  has  a  city  disregarded  these  state- 
ments and  established  municipal  owTiership  without  discovering 
that  such  assertions  were  utterly  baseless.  It  will  not  do  to  rely 
upon  corporation  statistics  without  disinterested  corroboration. 

"If  the  city  of  Des  Moines,  four  years  ago,  had  accepted  the  sta- 
tistics offered  by  its  water  company,  it  would  not  have  reduced  the 
water  rates  33  to  40  per  cent,  by  municipal  control;  nor  would  the 
Supreme  Court  of  Iowa  have  pronounced  these  rates  reasonable 
had  it  been  guided  by  the  showing  of  the  water  company's  expense 
of  operation,  including  interest  on  excessive  capitalization,  exorbi- 
tant salaries  to  officials,  etc. 

"Neither  would  the  city  now  be  under  contract  for  the  erection 
of  a  municipal  lighting  plant,  to  cost  $105,000,  which  the  con- 
tractors agree  to  operate  for  $65  per  arc  burning  all  night  and 
every  night  if  heed  had  been  given  to  the  statistics  by  which  the 
General  Electric  Company  proved  (?)  that  such  a  plant  could  not 
be  built  for  less  than  $250,000,  and  might  cost  $350,000,  and  could 
not  be  operated  for  less  than  we  were  then  paying,  namely,  $126 
per  lamp.  Instead  of  accepting  these  'statistics'  we  relied  on  the 
estimates  of  our  engineers  as  to  the  cost  of  erection  and  operation, 
and  they  corresponded  almost  exactly  with  the  terms  of  the  con- 
tract we  succeeded  in  securing."  ^ 

If  Kockford,  111.,  had  paid  attention  to  corporation  statistics  it 
would  still  be  paying  $125  per  arc  instead  of  $52.  The  city's  en- 
gineer estimated  the  cost  of  producing  light  under  municipal 
ownership  at  $5G  per  arc.  The  electric  company  declared  it  could 
not  be  done,  and  exhausted  every  means  to  defeat  the  movement, 
but  at  the  last  minute,  when  the  citj-  was  about  to  contract  for  a 
municipal  plant,  the  company  offered  to  furnish  light  at  the  rates 
estimated  by  th^  city's  engineer  if  the  city  would  abandon  its  in- 
tention of  building  a  municipal  plant.  The  city,  preferring  to  own 
its  own  pole  line,  contracted  with  the  old  company  at  $52  per  2000 
candle  power  lamp  burning  all  night  and  every  night. 

The  monopolies  exceedingly  dislike  the  daylight;  publicity  is 
not  congenial  to  their  retiring  dispositions.  When  in  the  course 
of  trial  their  books  have  been  called  for  they  have  even  abandoned 
important  suits  rather  than  bring  their  books  into  court.  The  gas 
and  electric  companies,  railways,  telephones.  Sugar  Trust  and 
Standard  Oil  agree  in  refusing  to  furnish  materials  for  a  complete 
biography.     Even  in  Massachusetts,  where  the  companies  are  re- 


\ono"^^^  subst.Tiitiall.v  from  Mayor  MacVicar  in  the  Progressive  Age,  Feb. 


PI'BLIC  OAVXEESHIP  OF  PUBLIC  UTILITIES.  63 

quired  by  law  to  make  returns,  the  big  electric  light  companies  omit 
some  facts,  like  the  amount  of  current  sold  for  motor  purposes, 
etc.,  the  absence  of  which  makes  it  impossible  to  make  exact  com- 
parisons or  reach  entirely  definite  conclusions.  The  Sugar  Trust 
systematically  conceals  its  books  from  investigating  committees, 
and  even  refuses  to  give  the  information  required  by  the  Census 
laws.*  The  Standard  Oil  not  on'y  keeps  its  books  and  facts  from 
legislative  committees,  but  it  has  been  known  to  refuse  for  years 
together  to  make  any  tax  return  in  a  state  where  it  had  manj- 
millions  of  property  subject  to  taxation;  ^  it  has  not  hesitated  at 
perjury  when  necessary  to  conceal  inconvenient  facts;  "  and  it  is 
strongly  suspected  of  having  procured  the  mutilation  of  public 
documents,  the  theft  of  testimony  taken  by  a  Congressional  Com- 
mittee and  the  abstraction  of  court  records  containing  facts  it 
wished  to  suppress.* 

•      POOR    SERVICE. 

5.  Poor  Sn'vicr  and  Laci:  of  Service,  the  not  so  generally 
characteristic  of  private  monopoly  as  high  charges  and  exces- 
sive profits  are,  nevertheless,  sufiicientl  j  prevalent  to  be  named 
among  the  evils  of  monopoly  in  private  control.  The  mo- 
nopolist does  not  aim  at  service,  but  dividends.  Service  must 
yield  to  profit  except  where  the  law  intervenes  and  manages 
to  get  itself  enforced,  or  in  the  extremely  rare  case  of  a  mo- 
nopoly whose  OAvners  have  tender,  public-spirited  consciences 
of  sufficient  power  to  govern  them  in  their  business  relations. 
Fortunately,  however  dividends  are,  to  a  considerable  extent, 
dependent  on  effective  service.  If  the  gas  wont  bum,  people 
will  use  electric  light,  or  oil,  or  acetylene.  If  the  street  rail- 
ways behave  too  badly,  the  people  will  use  busses  and  bicycles. 
There  is  no  such  thing  as  an  ahsolnte  and  compulsory  mo- 
nopoly as  yet.  A  monopoly  is  an  advantage  tending^  to  shut 
out  competition.  But  competition  in  the  shape  of  possible 
substitutes  is  not  yet  shut  out  from  any  line  of  business.  If 
wagon  transfer,  bicycle  travel  and  the  street  railways  in  a 
great  city  should  come  under  one  control,  or  the  Standard  Oil 
should  get  command  of  all  the  oil  wells  at  one  end  and  of  all 
the  gas  and  electric  light  franchises  of  a  city  at  the  other,  we 


♦  Review  of  Reviews,  VoL  XIX.  p.  685. 

1  Lloyd's  Wealth  against  the  Commonwealth,  Chap.  XIII,  p.  166,  et  seq. 

'  Ibid.,  59,  86,  89,  95,  96. 

'Ibid.,   p.  83. 


(54  THE  CITY  FOR  THE  PEOPLE. 

sliovild  begin  to  realize  what  monopoly  could  do  in  the  way 
of  exorbitant  rates  and  imperfect  service.  We  have  not  eix- 
perienccd  the  full  possibilities  of  monopoly,  but  wo  have  some 
broad  hints,  and  among  them  is  the  lesson  that  private  mo- 
nopoly tho  opposed  to  the^  adulterations  of  competitive  manu- 
facture, nevertheless,  in  various  other  ways  tends  to  poor  and 
insufficient  service. 

In  any  of  our  larger  cities,  day  after  day,  hundreds  of  cars  may 
be  seen  crowded  to  overflowing — seats  full,  aisles  so  densely 
crowded  that  the  conductor  can  scarcely  wedge  his  way  thru  to 
get  the  fares,  and  both  platforms  loaded  to  the  pressure  of  a  mob — 
and  if  you  ask  the  managers  for  better  service  they  tell  you  that  the 
people  on  the  straps  make  dividends.  That  was  the  explanation  of 
a  West  End  official,  I  am  told,  when  his  attention  was  called  to 
the  crowded  cars  by  a  sufferer  who  often  had  to  stand  up  half  or 
three-quarters  of  an  hour  going  from  his  home  to  his  office  and 
back  in  cars  where  the  people  were  hanging  in  festoons  on  the 
straps  and  riding  outside  in  every  available  fashion,  and  who  has 
frequently  counted  90  people  on  a  car  at  a  time — "strap  passengers 
make  dividends,"  said  the  railway  officer,  and  doubtless  he  was 
right.  The  more  people  in  a  car  the  smaller  the  expense  per  pas- 
senger for  wages  of  conductor  and  motorman,  maintenance  of 
track,  production  of  power,  etc.,  and  the  larger  the  part  of  each 
5-cent  fare  that  can  go  to  the  profit  account. 

Warming  the  cars  is  important  both  for  comfort  and  health, 
and  the  means  of  doing  it  properly  are  well  understood,  yet  the 
service  is  poor  in  this  respect  on  many  street  car  lines.  In  mod- 
erate weather,  when  it  doesn't  make  much  difference,  the  Boston 
electrics  are  nicely  warmed.  But  when  the  thermometer  drops  to 
zero  the  radiators  go  to  sleep.  Being  unequal  to  the  task  imposed 
upon  them  they  get  discouraged  and  retire  from  active  service. 
On  the  Elevated,  in  New  York,  the  cars  are  generally  comfortable, 
even  in  the  coldest  weather.  But  on  Broadway  the  cars  are  heated 
with  stoves  that  behave  in  anything  but  a  civilized  and  enlightened 
manner.  If  you  get  near  the  stove  you  think  you  are  sitting  on  a 
gridiron  in  Dante's  Inferno,  and  if  not  near  the  stove  you  think 
you  are  with  Peary  at  the  pole.  In  Philadelphia  almost  all  the  cars 
are  cold. 

The  bad  service  rendered  by  many  electric  light  companies  is 
matter  of  common  complaint.  The  2000  candle  power  arcs  con- 
tracted for  in  New  York  city  were  repeatedly  declared  by  the  City 
Bureau  of  light  to  be  really  little  more  than  1000  candle  power. 
Philadelphia  pays  inspectors  to  test  the  arc  lights  nightly,  to  see 
if  the  companies  are  living  up  to  their  contracts.  Many  times  the 
lamps  fall  far  below  the  agreement.  The  latest  report  at  hand 
shows  that  over  7000  lights  were  deducted  from  the  bills  of  the 
various  companies  during  the  year.     The  Aegis  of  March  3,  1893, 


pcBLic  ow:s-ERsnir  of  public  utilities.  G5 

p.  168,  gives  a  list  of  35  cities  in  20  states  whose  lamps  were  ex- 
amined by  experts  and  found  to  be  far  below  the  contract  require- 
ment. 

Our  telegraph  and  telephone  service  is  much  inferior  to  that 
afforded  hy  many  of  the  public  and  co-operative  plants  in  Europe. 
Complaints  of  the  poor  service  of  the  Western  Union  Telegraph 
are  multitudinous.  It  manifests  itself  in  sloA\Tiess,  inaccuracy,  in- 
sufficient facilities,  failure  to  guard  the  secrecy  of  messages,  ab- 
sence of  proper  co-ordination  with  the  telephone,  use  of  antiquated 
methods,  etc.  It  is  no  uncommon  thing  for  a  person  to  send  a 
message  and  then  get  on  a  train,  or  mail  a  letter,  and  reach  desti- 
nation in  person  or  by  post  before  the  arrival  of  the  telegram. 
Professor  Richard  T.  Ely  and  the  late  President  Francis  A.  Walker 
have  testified  to  the  inferiority  of  our  service  as  compared  with 
that  of  Europe,  and  Professor  Simon  Newcomb,  of  Yale,  says  that 
the  telegraph  service  in  the  United  States  is  the  poorest  in  the 
world.' 

Our  telephone  service  is  not  only  inferior  in  universality,  but 
for  the  most  part  also  in  quality'  and  convenience.  ^Ve  have  no 
express  talks,  no  telephonograms,  no  telephoning  of  mail  matter, 
and  practically  no  telephoning  of  telegrams.^  No  one  who  has  not 
given  special  attention  to  the  subject  can  have  any  conception  of  the 
improvment  of  our  telephone  service  easily  possible  under  a  well 
co-ordinated  sjstem,  offering  low  rates  and  making  service  the  main 
object. 

Private  companies  for  the  supply  of  water,  gas,  electric  light, 
transportation,  telegraph  and  telephone  service,  etc.,  avoid  the 
small  towns  and  sparsely  populated  districts,  because  they  can 
get  more  profit  on  their  money  in  dense  populations,  and  they  do 
not  care  Avhether  the  countrj-  is  well  served  or  not.  Many  towns 
woiild  be  without  any  general  water  supply  if  public  enterprise 
had  not  been  willing  to  enter  where  private  enterprise  would  not. 
A  considerable  number  of  towns  of  3000  or  5000  people  and  villages 
of  less  than  3000  inhabitants  now  successfully  operating  electric 
light  plants  would  probably  not  be  enjoying  the  privilege  of  well- 
lighted  streets  if  they  had  waited  for  the  private  companies.' 

The  neglect  of  small  towns  and  country  distr'icts  by  the  Bell 
Telephone  Monopoly  is  one  of  the  most  emphatic  points  in  its  his- 
tory-. In  many  parts  of  Europe  the  whole  rural  population  is  as 
well  supplied  with  telephones  as  the  people  of  large  towns  in  most 
of  our  states.  In  Norway,  Sweden  and  Switzerland,  where  the 
service  is  public,  there  is  one  telephone  to  each  85  persons.  In  the 
United  States  the  figure  is  165.  Massachusetts,  the  home  of  the 
Bell  company,  and  a  few  of  our  cities,  are  well  telephoned,  but  for 


*  For    details    and    numerous    facts    see    my    articles    on    The    Telegraph 
Monopoly,  Arena,  Vol.  15,  p.  948,  et  seq. 

*  See  my  chapter  on  The  Telephone  in   Municipal  Monopolies. 

'  See    remarks   of   Prof.    Common*!,  and  admissions  of  Mr.   H.  A.  Foster, 
a  writer  opposed  to  municipal  ownership:    Municipal  Monopolies,  p.  66. 

5 


66  THE  CITY  FOR  THE  PEOPLE. 

the  most  part  little  has  been  done  to  develop  the  service  to  any- 
thing- like  its  proper  proportions.  Even  our  best  cities  are  far  be- 
hind some  of  the  leading  telephone  centres  of  Europe,  as  the  fol- 
lowing table  shows: 

Ratio  of  PTiones  to  Population. 

No.  of  Persons  No.  of  Persons 

To  i-ach  Telephone  To  each  Telephone 

Stockholm,  Swed.,  State  System  23  New  York,  Private  System.....  108 

Chrlstiiinia,  Norway,  Mmiic.     "  30  Greater  New  York,  Priv.  Sys'm  120 

Trondhjem,   Norway,    Munic.  "  38  Philadelphia                    "           "  170 

Grlmstad,   Norway,   Co-op.       "  25  Boston   and   Suburbs    "           "  60 

Berne,   Switz.,   State                  "  40  St.  Louis                                      "  127 

Geneva,   Switz.,   State               "  30  Chicago  129 

Not  all  the  state  s3^stems  in  Europe  do  better  than  our  comi)anies 
in  the  distribution  of  service — some  state  ownership  is  by  no 
means  pnblic  ownership,  and  even  real  public  ownership  is  not 
always  in  the  front  rank  of  progress  and  enlightenment;  but  the 
examples  given  show  how  far  our  companies  are  from  giving  our 
people  the  full  possibilities  of  the  telephone  service. 


DISBEGAED  OF  SAFETY. 

6.  Dhregard  of  Public  Safety  is  a  twin  evil  with,  the  last. 
Grade  crossings,  that  kill  and  maim  their  thousands  every 
year;  stoves  that  are  dangerous  in  case  of  accident;  carelessly 
placed  or  improperly  protected  electric  light  wires,  that  injure 
lu'CPien,  interfere  with  the  extinguishment  of  conflagrations, 
and  not  infrequently  cause  them ;  overhead  trolley  wires,  that 
even  Verkes  admits  are, a  menace  to  life  and  property;  single 
flangt  rails  obstructing  the  streets  and  wrenching  the  wheels 
of  innocent  carriages;  fenderless  cars  or  heavy  iron  battering 
rams  instead  of  true  fenders;  leaky  gas  pipes  left  to  contami- 
nate the  air,  and  sometimes  neglected  till  they  cause  terrific 
expiations;  beef  that  is  more  dangerous  to  life  than  Spanish 
bullets,  and  oil  below  the  standard  test  required  by  law — such 
are  a  IW  examples  of  the  tendency  of  private  monopolies  to 
disregard  the  safety  of  the  public. 

In  1890  a  committee  of  the  New  York  legislature  found  that  "six- 
teen deaths  were  directly  traceable  to  the  poor  insulation  and  bad 
arrangement  of  the  wires  of  the  electric  light  companies  of  New 
York  city."  Fire  Marshal  Swene,  of  Chicago,  reported  231  fires 
caused  by  electric  light  wires  and  lights  during  two  years  in  that 
city.  In  his  address  to  the  twenty-eighth  annual  meeting  of  the 
National  Board  of  Underwriters,  President  Skelton  said:  "Concur- 
rent action  regarding  our  greatest  enemy,  electricity,  seems  to  be 
imperative.     There  has  been   plenty  of  evidence  that  fires  caused 


PUBLIC   OWJfEESHIP   OF   PUBLIC   UTILITIES.  67 

by  electricity  are  growing  alarmingly  frequent,  and  inspections 
show  that  but  few  buildings  in  any  community  are  safely  wired. 
This  great  and  increasing  danger  cannot  be  ignored.  It  threatens 
the  very  life  of  fire  insurance."  In  Boston  we  have  had  emphatic 
object  lessons  on  the  danger  of  the  wires;  they  have  not  only 
originated  a  number  of  disastrous  fires,  but  almost  always  thev 
greatly  hinder  the  subduing  of  the  flames,  and  injure  more  fire- 
men than  all  other  perils  put  together.  The  firemen  very  justly 
dread  them  more  than  they  do  the  fire. 

Every  one  who  reads  the  newspapers  knows  the  fearful  record 
of  the  trollej^  cars.^  In  Brooklyn  alone  they  killed  104  persons  in 
two  years,  according  to  the  press  reports.  In  New  York  city  the 
cable  cars  used  to  swing  at  full  speed  round  the  dangerous  cunre 
at  BroadAva3'  and  Fourteenth  street,  and  so  many  accidents  oc- 
curred that  the  place  became  known  as  the  "Dead  Man's  Curve." 
Within  two  weeks  I  have  read  of  four  trolley  accidents,  in  one  ot 


1  The  Philadelphia  Press  of  August  12,  1899,  in  an  editorial  on  the  Bridge- 
port disaster,  brings  out  clearly  the  facts  that  very  little  care  is  taiien  by 
many  companies  in  the  selection  of  motormen,  and  that  the  ill  treatment  of 
the  men  is  a  source  of  great  danger  to  the  public,  even  when  the  men 
are  competent.     Part  of  the  article  is  as  follows  (italics  mine): 

"The  story  of  Motorman  Hamilton,  who  guided  the  trolley  car  which 
went  over  a  trestle  near  Bridgeport,  Conn.,  last  Sunday,  killing  nearly 
thirty  people,  will  be  a  reminder  to  the  public  how  completely  its  safety 
Is  in  the  hands  of  the  motorman  and  how  much  his  competency  depends 
upon  the  way  he  Is  treated  by  his  employers.  It  is  due  to  the  millionB 
of  people  who  patronize  trolley  cars  every  day  and  who  place  their  lives 
In  the  hands  of  the  employees  of  the  trolley  companies  to  know  what 
precautions  are  taken  in  the  choice  and  care  of .  motormen  and  conductors 
to   insure   safety   for  life  and   limb. 

"The  line  on  which  the  disaster  occurred  is  over  fourteen  miles  long, 
making  a  round  trip  of  nearly  thirty  miles.  Last  Sunday  morning  Motorman 
Hamilton  breakfasted  at  7.15  A.  M.,  and  then  reported  for  duty.  At  8.15 
he  started  out  on  his  first  round  trip  from  Bridgeport,  returned  and  at 
11.15  started  on  his  second  round  trip,  getting  back  to  Bridgeport  at  2.40 
P.  M.,  having  lost  twenty-five  minutes  from  some  cause  on  his  second 
trip.  He  had  thin  seen  six  hours  and  thirty-five  minutes  of  continuous  svrvicn 
and  teas  tirid  and  hungry.  He  askt  to  be  allowed  time  to  rest  and  lat  his 
dinner,  but  the  motorman  who  should  have  relieved  him  teas  not  at  hand 
and  th?  car  starter  told  Motorman  Hamilton  that  he  could  not  be  allotoed  any 
stop  for  dinner  but  must  start  at  once  on  another  trip,  demanding  at  least  three 
hours  more  of  steady  work.  He  obeyed  orders  and  took  his  car  out  on  the 
fatal   trip  which  sent  nearly  thirty  people   into  eternity. 

"The  trestle  from  which  the  car  fell  was  probably  not  constructed  sub- 
stantially enuf  for  the  work  It  was  called  upon  to  do.  There  iwere  also 
no  guard  rails,  and  the  depression  or  "jounce,"  just  before  the  bridge 
was  reacht  had  doubtless  much  to  do  with  derailing  the  car.  But  probably 
all  these  factors  together  might  not  have  been  enuf  to  cause  the  disaster 
had  not  Motorman  Hamilton  been  compelled  to  go  without  his  dinner.  He 
was  in  bad  humor,  undoubtedly,  and  weak  from  lack  of  food  and  was  in  just 
the  condition  of  rnind  ichrn  evin  the  most  careful  workingman  loses  his  caution 
and  pels  inclined  to  disregard  strict  regulations.  The  disaster  occurred  at 
5.15  P.  M.,  and  it  was  then  ten  hours  since  Motorman  Hamilton  had  sat  dourn 
to  his  breakfast.  With  no  food  in  the  interval  to  sustain  Mm  it  is  easy  to  imagine 
in  ichat  condition  h"  was.  And  yet  the  official  of  the  trolley  company  took 
the  risk  of  compelling  him  to  guide  a  car  freighted  with  human  life  over 
a  road  part  of  which  is  now  admitted  to  have  been  faultily  constructed. 
"The  public  does  not  know  how  many  risks  it  is  subjected  to  from  this 
lack  of  care  of  employees  by  their  employers.  It  is  only  when  a  disaster 
—it  would  be  ludicrous  to  call  it  an  accident — occurs  that  the  public  is  let 
into  the  secret  of  the  risks  ti^ken.  A  few  years  ago  a  railroad  collision 
occurred  in  Ohio  in  which  a  number  of  lives  were  sacrificed,  and  during 
the  inquest  it  was  made  known  that  the  engineer  of  the  train  whose  care- 
lessness caused  the  collision  had  been  compelled  to  be  on  duty  for  forty-eight 
hours  without  sleep  and  was  worn  out  mentally  and  physically,  and  in  no  con- 
dition to  perform  his  duty  promptly  and  efficiently.  The  same  disregard  of 
employees'  condition  has  been  the  cause  of  other  disasters  while  many  more 
have  been  escaped  by  a  fortunate  chance." 


68  THE  CITY   FOK    fllE   I'EOPLE. 

which  over  twenty  people  were  killed  and  in  another  thirty  persons 
were  injured.  The  companies,  as  a  rule,  do  not  show  much  anxiety 
to  report  these  matters.  Laws  and  ordinances  were  passed  requiring 
the  cars  to  be  furnished  with  fenders,  but  the  companies  have 
stubbornly  refused  to  fulfil  the  spirit  and  purpose  of  the  law,  and 
in  some  cases,  as  in  Philadelphia,  resisted  even  the  letter  of  it 
until  fined  for  disobedience.  Most  of  the  fenders  in  use  in  our 
eastern  cities  run  four  to  twelve  inches  above  the  level  of  the  road, 
and  some  have  iron  fronts,  that  would  break  a  man's  leg-  like  a 
splinter.  If  a  child  is  on  the  track,  the  fender  knocks  it  down, 
probably  breaking-  its  leg,  passes  above  it  and  leaves  the  car  wheels 
to  do  the  rest.  Cushioned  fenders,  running  close  to  the  track,  are 
necessary  for  safety.  In  Buda-Pesth  the  cars  have  fenders  that 
will  push  a  baby  from  the  track  without  injuring  it.  But  it  will 
need  work  to  get  efficient  fenders  here.  The  companies  care  little 
for  safety  unless  it  will  save  them  more  money  than  it  costs.  A 
few  years  ago  in  Philadelphia  a  man  presented  a  safety  attach- 
ment for  street  cars.  On  trial  with  stuffed  arms,  legs,  heads  and 
bodies,  it  was  found  in  every  instance  that  they  were  rolled  from 
the  track  uninjured.  The  presidents  of  the  street  car  companies 
met  to  discuss  the  advisability  of  adopting  the  new  invention. 
"What  will  it  cost?"  they  asked.  "Fifty  dollars  a  car,"  was  the 
answer.  The  presidents  ciphered  up  the  total  costs,  compared  it 
with  the  damages  they  had  been  paying  for  accidents,  concluded 
it  was  cheaper  to  run  over  people  and  pay  for  it,  and  decided  they 
would  not  protect  the  -cars  with  the  safety  fender.^ 


DISCBIMINATION 

7.  Unjust  Discrimination  is  an  evil  natural  to  monopoly 
in  private  control.  "Whether  it  be  a  street  railway,  an  electric 
light  plant,  a  telegraph  or  telephone  system,  a  railroad  or  a 
dcpaTtment  of  the  government,  if  the  control  is  in  private  in- 
terest, unjust  discrimination  is  almost  sure  to  result. 

It  is  one  of  the  chief  counts  in  the  indictment  of  the  railroads 
and  the  street  railways  that  they  are  by  no  means  free  from  this 
taint.  I  know  a  ward  heeler  in  one  of  our  eastern  cities  who  has 
all  the  passes  or  free  tickets  for  street  cars  he  cares  to  use  or 
give  away  to  his  friends  or  vassals.  In  Kansas  City  the  investiga- 
tion of  the  Missouri  Labor  Bureau  developed  the  fact  that  the 
street  railways  were  lavish  with  free  passes  among  city  officials. 
The  city  clerk  acted  as  the  railway'a  distributor-in-chief  in  the 
City  Hall,   and  in   the   Common   Council   the    sergeant-at-arms   at- 


^  The  story  comes  to  mo  from  a  source  I  liavo  no  reason  to  question. 
ana  It  Is  exactly  In  line  with  the  well  known  conduct  of  the  companies  in 
respect  to  safety  fenders. 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  68 

tended  to  the  matter.  One  eity  legislator,  Mr.  Tiernan,  promptly 
returned  the  pass  laid  on  his  desk,  but  the  Bureau  failed  to  dis- 
cover any  other  refusals  to  accept  the  "delicate  advance."^ 

Water,  gas,  electric  light  and  telephone  service  are  frequently 
given  free  of  charge  to  men  of  position  and  influence,  who  are 
much  better  able  to  pay  than  the  mass  of  consumers,  who  have 
to  pay  for  the  privileges  of  the  favorites  of  monopoly  in  addition 
to  their  own.  I  could  mention  names,  but  I  do  not  wish  to  hurt 
anybody's  feelings,  and  the  reader  can  discover  examples  enough 
for  himself  if  he  will  inquire  with  due  diligence  and  sagacity.  It 
is  the  system  and  not  the  individual  that  merits  the  severest  con- 
demnation. Yet  it  must  be  remembered  that  every  public-spirited 
man  who  refuses  a  proffered  dead-head  service  is  helping  to  break 
down  the  system  and  develop  a  truer  civic  conscience,  while  one 
who  accepts  such  service  is  helping  to  fasten  the  system  upon 
us  and  deaden  the  consciences  of  his  fellows.^ 

Inequitable  treatment  of  consumers,  or  favoring  some  persons 
and  places  at  the  expense  of  others,  is  not  the  only  form  of  unjust 
discrimination  of  which  the  private  monopolies  are  guilty.  The 
grand  discriminatioiP  is  between  the  mass  of  consumers,  or  the 
common  people,  on  the  one  hiand,  and  the  monopolists  on  the  other. 
The  exorbitant  rates  and  profits  and  excessive  capitalizations  by 
which  the  monopolists  seek  their  own  advantage  at  the  expense 
of  others  constitute  in  themselves  a  most  grievous  form  of  dis- 
crimination. The  fundamental  aim  and  purpose  of  private  mon- 
opoly is  unjust  discrimination. 

FRAUD   AND   CORRUPTION. 

8.  Fraud  and  Corruption  are  among  the  most  prolific,  and 
are  quite  the  most  deplorable,  of  all  the  results  of  private  mo- 
nopoly. As  much  as  the  debasement  of  individual  character 
and  the  degradation  of  government  are  worse  than  any  mere 


1  Bureau  of  Labor  Statistics,  Mo.,  1896,  p.  57.  The  Commission,  while 
spealiing  of  these  passes,  says  they  cannot  of  themselves  account  for  the 
30-year  franchise,  extremely  low  assessments,  neglect  to  compel  payment 
of  taxes  and  the  shutting  of  eyes  to  false  car  reports.  The  "extraordinary 
indulgence"  shown  the  street  railways  is  due  to  the  "fact  that  they  wield 
a  tremendous  political  power"  thru  the  shrewd  lawyers  and  political  man- 
agers in  their  employ,  and  the  combined  effects  of  their  various  methods 
of  influence  and  mastery. 

=-For  an  account  of  the  Western  Union's  complicated  discriminations 
against  persons,  classes,  newspapers  and  places,  see  The  Arena,  Vol.  16, 
p.  70,  et  seq.  For  criticizing  the  W.  U.,  or  other  similar  weighty  reason, 
newspapers  have  been  denied  the  service  necessary  to  their  success,  and 
In  some  cases  newspaper  enterprises  have  been  killed  by  W.  U.  discrimina- 
tion. Even  the  Government's  business,  tho  required  by  law  to  be  sent 
ahead  of  everything  else,  has  to  wait  if  a  commercial  message  wants  the 
wire,  etc..   etc. 

For  a  discussion  of  the  railroad  discriminations  which  have  built  so 
many  fortunes  and  formed  the  foundation  for  so  many  successful  trusts 
and  combines,  see  "The  Railway  Problem,"  by  A.  B.  Stickney,  and  Lloyd's 
"Wealth  against  the  Commonwealth."  See  section  8;  and  section  9  last 
note.  The  subject  will  be  treated  in  a  future  number  of  the  Equity  Series 
on  Transportation. 


70  THE  CITY  FOR  THE  PEOPLE. 

matter  of  property,  so  much  are  the  frauds  and  corruptions 
of  monopoly  worse  than  its  monetary  effects.  In  a  sense,  ex- 
orbitant rates  and.profits  constitute  in  themselves  a  fraud  upon 
the  public,  and  in  a  large  proportion  of  cases  excessive  charges 
and  extravagant  profits  are  rendered  possible  only  by  frauds 
of  overcapitalization,  false  accounting,  manipulation,  of  stock, 
unlawful  agreement,  etc.,  or  by  corruption  of  a  legislative 
body  to  secure  a  favorable  franchise  or  other  privilege,  or  of 
administrative  officers  to  prevent  the  enforcement  of  the  laws. 
Fraud  and  corruption  lay  the  foundation  for  extortion,  and 
extortion  supplies  the  means  for  new  frauds  and  corruptions, 
wliich  open  the  way  for  further  extortions,  and  so  the  uncon- 
scionable game  goes  on.  The  subject  cannot  be  dwelt  upon 
at  the  length  its  importance  suggests,  but  a  few  details  and 
concrete  examples  will  be  given  to  shovj  what  the  private 
monopolies  are  capable  of. 

Some  of  the  common  corporate  frauds  are  inflated  construction 
•contracts  with  directors  or  other  inside  parties,  or  with  construc- 
tion companies  owned  by  them;  exorbitant  salaries,  false  commis- 
sions, "legal  expenses,"  legislative  and  advertising  expenses;  false 
statements,  doctored  accounts,  suppression  of  important  facts,  per- 
jured returns  to  tax  commissioners  and  other  public  officers; 
seesawing  traffic  or  dividends,  paying  unearned  dividends  or  with- 
holding dividends  earned,  and  other  methods  of  manipulating  stock 
values,  so  as  to  buy  it  in  at  bottom  prices  and  sell  it  again  at  high 
prices;  inflating  records  of  value  by  adding  together  all  past  ex- 
penditures with  no  deductions  for  depreciation  and  extinction  of 
past  possessions  obtained  by  such  expenditures,  large  increase 
of  securities  on  the  consolidation  of  companies,  issuing  fictitious 
dividends,  issuing  valuable  stock  to  stockholders  at  par,  or  other- 
wise watering  securities  or  inflating  capitalization;  distributing 
stock  among  influential  people;  furnishing  free  light,  transporta- 
tion, etc.,  to  men  of  wealth  and  position;  bribing  councils  and 
legislators  to  secure  franchise  privileges  or  to  prevent  others  from 
obtaining  grants;  scheming  to  wreck  and  capture  public  plants 
or  rival  private  plants,  corrupting  officers  to  prevent  the  enforce- 
ment of  the  law  or  performance  of  duty;  "bulldozing"  employes 
to  vote  for  corporate  agents  and  vassals  for  councilmen,  aldermen, 
legislators,  etc.;  furnishing  too  few  cars,  poor  quality  or  over- 
pressure of  gas,  undercurrent  of  electricity  and  other  tricks  of  traf- 
fic; working  on  public  opinion  undercover  thru  the  control  of  news- 
papers and  institutions  of  learning;  stealing  inventions,  or  buying 
and  suppressing  them;  ruining  opx>onents  by  expensive  litigation; 
making  "ring"  contracts  above  reasonable  market  rates,  or  "con- 


PUBLIC    OWM.KSIIIP    OF    PUBLIC    UTILITIES.  71 

spiracy"  contracts  to  secure  unreasonable  rebates  and  advantages 
guaranteeing  enornaous  profits  on  leased  or  rented  properties,  etc. 

Governor  Hazen  S.  Pingree,  of  Michigan,  while  Mayor  of  Detroit, 
discovered  that  the  Citizens'  Street  Railvs^ay  Company  of  that  city 
"literally  owned  the  Council,  body  and  soul."  ^  They  would  pay 
$3000  for  a  member,'  and  even  made  an  actual  offer  of  $75,000  to 
buy  the  Mayor  himself.'  The  Governor  says:  "My  experience  in 
fighting  monopolistic  corporations  and  endeavoring  to.  save  the 
people  some  of  their  rights  as  against  their  ,greed  has  convinced 
me  that  the  corporations  are  responsible  for  nearly  all  the  thieving 
and  boodling  with  which  our  citiies  suffer."  *  The  bribe  does  not 
always  take  a  money  form.  Mayor  Pingree  was  offered  a  trip 
around  the  world  by  the  agent  of  a  certain  company  if  he  would 
refrain  from  vetoing  a  specified  franchise. 

Speaking  of  the  situation  in  Cleveland,  Dr.  Hopkins  saj's:  "When 
we  approach  the  question  of  coiruption  in  the  award  of  franchises, 
it  must  be  admitted  that  the  system  has  thus  far  put  an  immense 
premium  upon  all  sorts  of  bribery  and  corruption.  The  street 
railway  interest  has  been  all  powerful  in  the  control  of  political 
machines.  It  has  not  only  secured,  apparently  for  the  mere  asking, 
the  most  valuable  privileges  which  the  City  Council  could  bestow, 
it  has  also  escaped  the  performance  of  many  obligations  which  the 
state  has  compelled  the  Council  to  make  a  condition  of  its  grants. 
And  it  has  prevented  the  enforcement  of  nearly  every  law  which 
it  has  not  cared  to  obey."  * 

The  Broadway  Surface  franchise  was  secured  by  bribing  nearly 
the  whole  Board  of  Aldermen.  The  "Cable  Railway  Company" 
offered  the  city  $1,000,000  bonus  above  the  compensation  required 
by  statute,  but  the  franchise  was  given  to  the  "Broadway  Surface 
Railroad  Company"  without  compensation  beyond  the  statute  mini- 
mum, the  Aldermen  overriding  the  Mayor's  veto  to  do  it.  Almost 
the  entire  Board  of  Aldermen  and  the  ofBcers  of  the  company  were 
indicted  for  corruption,  and  it  was  shown  that  in  bribes  of 
$20,000  per  Alderman  and  something  for  go-betweens  the  franchise 
had  cost  the  Surface  Company  just  half  what  the  Cable  Company 
had  offered  to  pay  the  city  for  it.*  When  Toronto  wished  to  relet 
its  street  railways  on  terms  advantageous  to  the  city  and  called 
for  bids,  New  York  capitalists  who  went  to  look  at  the  situation 
laughed  at  the  idea  of  paying  part  of  the  earnings  to  the  city. 
"They  had  been  accustomed,  so  the3'  informed  one  of  the  commit- 
tee, to  pay  something  to  the  Aldermen,  but  nothing  to  the  munici- 
pality." ' 


'  Facts  and  Opinions,  by  Hazen  S.  Pingree,  p.  31. 

=  Ibid.,  p.  30. 

3  Ibid.,  pp.  86.  122. 

*Ibid.,  p.  24. 

5  "St.   Rt.    Prob.   in   Cleveland,"   Amer.   Ecop.   Ass'n.,   1896,   pp.   315,  316. 

«  Final  Rep.  Com.  on  Rds.  relative  to  B'y.  Surf.  Rd.  Co.,  Senate  Doc. 
No.  79,  1886;  People  vs.  O'Brien,  111  N.  Y.  1.  Dr.  Max  West  In  Municipal 
Monopolies,  pp.  376,  377. 

•  A\'.   D.   Gregory  in  The  Outlook,  Feb.  5,  1898. 


72  THE  CITY  FOR  THE  PEOPLE. 

Philadelphia  has  had  ample  experience  with  railway  morals  and 
traction  politics  from  the  open  purchase  of  the  Union  Passenger 
charter,  in  1864,  to  the  "Suburban  Trolley  Grab"  of  1894.  The 
former  was  bought  by  the  liberal  distribution  of  options  on  stock 
among  the  members  of  the  Pennsylvania  Legislature.  The  latter 
was  an  ordinance  framed  in  Councils  to  give  100  miles  of  street  in 
a  suburban  district  with  absolutely  no  return  to  the  city,  and  not 
even  an  agreement  on  the  part  of  the  company  to  build  roads  in 
the  locations  granted.  The  press  and  the  people  stormed  and  ve- 
hemently charged  the  Councils  with  corruption,  but  the  measure 
passed  by  more  than  a  three-fifths  vote.  The  Maj^or's  veto,  how- 
ever was  allowed  to  stand,  but  the  traction  mastery  was  clearly 
indicated  in  the  outcome.  "Every  newspaper  of  repute  in  the  city, 
regardless  of  party,  had  denounced  the  'Grab,'  and  as  the  annual 
municipal  election  approached  at  which  one-half  the  Common 
Councilmen  and  one-third  of  the  Select  Councilmen  were  to  be 
chosen,  the  papers  demanded  the  defeat  of  every  man  who  had 
voted  for  the  'Traction  Grab  Bill.'  Lists  of  those  who  voted  for 
the  bill  were  published  in  all  the  papers,  and  their  respective  par- 
ties were  exhorted  not  to  renominate  them.  But  the  j)olitical  ma- 
chine responded  to  other  forces  than  those  of  public  opinion.  The 
terms  of  seven  Select  Councilmen  who  voted  for  the  bill  expired. 
All  but  one  were  renominated,  and  all  nominated  were  re-elected. 
In  the  Common  Council  the  terms  of  forty-seven  supporters  of  the 
'Traction  Grab'  expired.  Thirty-six  were  renominated  and  thirty- 
five  re-elected.  The  net  result  of  the  agitation  of  a  united  press 
and  a  long  and  vigorous  reform  campaign  in  behalf  of  honorable 
candidates  was  the  election  of  one  reform  Councilman.  A  more  re- 
markable assertion  of  the  control  of  a  municipality  by  a  political 
machine  identified  with  the  interests  of  a  railway  company  it  would 
be  hard  to  find." ' 

The  Philadelphia  press,  pulpit  and  platform  have  continually 
proclaimed  in  recent  years,  practically  unchallenged,  that  a  con- 
siderable number  of  Councilmen  are  in  the  pay  of  the  street  rail- 
ways and  other  great  corporations.* 

The  "Eailway  Boss  Act"  of  1868,  which  practically  gave  Philadel- 
phia into  the  hands  of  the  street  railways;  the  "Gas  Ring,"^"  in  the 
seventies,  which  owed  much  of  its  power  to  the  ownership  of  one  of 
the  principal  railways  of  the  city,  and  the  "Motor  Bill"  of  1887  are 
further  illustrations  of  the  political  methods  of  Philadelphia  street 
car  companies.  The  passage  of  the  Motor  bill,  giving  extraordinary 
powers  to  motor  companies  was  severely  denounced  by  the  press 
and  by  the  people  in  raass  meeting,"     The  companies  yielded  a 


»  S't.  R'y.  System  of  Phila.,  1897,  by  Prof.  Spelts  of  Drexel  Institute, 
p.  98. 

»Ibid 

">  A  fall  description  wf  the  famous  "Gas  Ring"  of  Philadelphia  is  easily 
accessible  in  Vol.  II  of  Bryce's  "American  Commonwealth,"  so  it  need  not 
be  dwelt  upon  here. 

"  Prof.  Speirs  recounts  a  part  of  what  occurred  In  1887  as  follows: 

"Mr.   H.   L.   Carsou,   the  distinguished  historian   of  the   Supreme   Court, 


PUBLIC   OWIsLRSHIP   OF   PCBLIC   UTILITIES.  73 

little  and  had  the  law  modified  somewhat,  but  their  political  power 
remained  undiminished,  as  subsequent  events  already  described 
have  clearly  shown. 

A  street  railway  financier,  who  offered  to  build  extensive  lines 
in  Chicago  with  a  3-cent  fare  and  a  good  bonus,  was  told  by  mem- 
bers of  the  City  Council  that  these  items  were  unimportant.  The 
vital  condition  was  that  he  must  pay  $50,000  to  the  Aldermen  at 
the  start  and  $250,000.  when  he  secured  his  franchise."  In  his  book 
"If  Christ  Came  to  Chicago"  ;Mr.  Stead  estimates  that,  on  an 
average,  franchises  worth  $5,000,000  are  annually  given  away  in 
Chicago  to  those  who  best  understand  how  to  give  the  members 
of  the  city  government  the  proper  encouragement.  It  is  matter 
of  common  knowledge  in  Chicago  that  the  street  railway  compa- 
nies spent  vast  sums  in  getting  the  Legislature  of  1897  to  pass  the 
infamous  Allen  bill  permitting  the  grant  of  50-year  franchises. 

Here  is  a  legislative  investigation  of  the  West  End  Street  Railway 
Company  of  Boston  in  1890  (House  Document  585).  The  committee 
found  that  the  West  End  had,  in  one  year,  paid,  or  promised,  the 
following  sums  to  influence  legislation: 

To  lobbyists  $22,000 

To  an  attorney  for  services,  Influence,  etc.,  in  procuring  legislation. .  10,000 

To  another,  ditto '. 500 

For  dinners  to  members  of  Legislature  at  the  Algonquin  Club 1,922 

For  carriages  for  said  members 584 

To  newspapers  for  printing  speeches,  arguments,  etc.,  gotten  up  by 

West  End 7,500 

?42,506 

Besides  this,  the  committee  found  that  "large  sums"  had  been 
paid  to  other  petitioners  to  withdraw.  It  is  altogether  improbable 
that  the  committee  came  within  hailing  distance  of  all  the  expen- 
ditures in  the  case,  and  perhaps  the  most  vicious  of  them  escaped 
the  light;  but  enough  was  discovered  to  give  us  a  clue  to  some  of 
the  items  in  the  West  End's  overgrown  expense  account. 

The  electric  light  companies  are  not  far  behind  the  trolleys  when 
the  exigencies  of  their  situation  demand  political  action.  Indeed, 
the  two  monopolies  usually  aid  each  other,  and  are  often  con- 
trolled by  the  same  men.  We  have  alreadj"  seen  how  they  con- 
trolled the  Philadelphia  Councils,  packed  the  investigating  com- 
mittee and  "gutted"  the  Edison  company  to  prevent  the  city  from 
getting  its  light  at  a  reasonable  rate. 

Electrical  politics  constitute  the  reverse  side  of  the  shield  on 
whose  front  we  have  found  Extortion.  The  companies  are  obliged 
to  give  due  attention  to  politics  in  order  to  keep  their  right  to  ob- 


denouneed  the  act  as  'an  example  of  reckless  and  arbitrary  power  outgrowing 
all  the  bounds  of  decency  and  restraint.'  The  conservative  Public  Ledger 
says  of  the  bill:  'It  is  wrong  in  policy,  bad  in  principle,  a  trick  and  a  fraud.' 
And  again  the  Ledger  explains  the  public  hostility  to  the  company  by 
saying  that  it  is  due  to  'the  breaking  of  their  bargains  with  the  city,  their 
pretence  of  abiding  by  the  decisions  of  the  courts  of  law,  with  their  attempt 
to  circumvent  the  courts  by  covered  up  and  tricky  proceedings  in  the 
Legislature,   and   their   defiant   contempt   of  public   rights.'" 

"  Statement  bv  Prof.   Bemis  to  whom  the  said  financier  gave  the  facts. 


74  THE  CITY  FOR  THE  PEOPLE. 

tain  an  exorbitant  profit  on  light,  and  they  are  compelled  to  make 
large  profits  on  light  in  order  to  give  due  attention  to  politics. 
They  begin  usually  by  bribing  the  Councils  to  get  their  franchises. 
Then  they  have  to  keep  on  bribing  to  prevent  the  granting  of  rival 
franchises  and  measures  looking  to  the  reduction  of  prices,  and  all 
other  legislation  injurious  to  their  interests.  To  secure  immunity 
from  interference  with  their  monopolistic  right  to  overcharge,  and 
to  intrench  themselves  in  the  lavp,  they  put  their  money  and  influ- 
ence into  politics,  robbing  the  public  vdth  one  hand  and  with  the 
other  bestowing  a  part  of  the  booty  on  the  officers  of  the  law  to 
keep  them  from  stopping  the  game.  This  is  well  known  to  be  the 
sitiiation  in  Boston,  New  York,  Brooklyn,  Philadelphia,  Chicago, 
Minneapolis  and  other  large  cities.  In  Northampton,  Mass.,  it  was 
found  that  all  the  city  government,  from  the  Mayor  dowm,  were 
holders  of  stock  in  the  electric  lighting  company.  A  member  of 
Council  in  Paris,  111.,  says:  "The  light  companies  are  composed  of 
sharp,  shrewd  men.  Their  stock  is  distributed  where  it  w^ill  do  the 
most  good.  It  was  observed  that  the  company  took  special  interest 
in  city  elections.  Men  who  never  seemed  to  care  who  was  made 
congressman,  governor  or  president,  would  spend  their  time  and 
money  to  elect  a  man  of  no  credit  or  standing  in  the  community. 
The  question  was,  'Are  you  for  the  light  company?'  " 

One  of  the  Aegis  investigators  questioned  nearly  every  large 
city  in  the  United  States  upon  this  point,  and  a  great  majority 
replied  that  the  electric  light  companies  are  in  politics,  and  some 
said  that  the  companies  own  and  run  the  city.  Mayor  Weir,  of 
Lincoln,  Neb.,  wrote:  "The  electric  companies  are  in  politics  in 
every  sense  of  the  word.  They  attempt  to  run  our  city  politics, 
and  usually  succeed."  Similar  words  came  from  the  officials  of 
Milwaukee,  Kansas  City,  Sacramento  and  many  other  cities.  Elec- 
trified politics  are  not  a  success  for  the  people;  electricity  is  un- 
doubtedly beneficial  to  the  body  politic  when  properly  adminis- 
tered, but  it  will  not  do  to  leave  the  treatment  to  unprincipled 
quacks,  who  care  nothing  for  the  health  of  the  patient,  if  they 
can  only  get  his  money. 

Public  plants  have  sometimes  been  crippled  and  captured  by  the 
scheming  of  private  companies.  Michigan  City  built  a  public 
electric  light  plant  in  1886,  with  84  arcs,  for  $7500.  During  the  first 
three  years  the  cost  per  arc  was  $43.  Then  the  Electric  Street 
Railway  Company  wished  to  buy  the  plant.  The  company  had 
backing  in  the  city  government,  but  the  opposition  was  strong. 
The  result  was  that  the  reported  cost  mysteriously  jumped  to  $80 
per  arc,  and  the  plant  was  sold  to  the  Electric  Street  Railway  Com- 
pany for  $2,500,  the  company  agreeing  to  furnish  the  city  with  light 
at  a  cost  not  to  exceed  $75  per  arc. 

In  Portland,  Oregon,  also,  the  electric  light  company  had  suffi- 
cient influence  in  the  city  council  to  force  the  sale  of  the  municipal 
plant  in  East  Portland  when  it  became  a  part  of  the  city  of  Portland, 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  75 

and  the  Mayor  says  they  are  now  j)aying  two  prices  for  electric 
light,  with  little  hope  of  deliverance. 

A  fraud  of  a  similar  nature  produced  the  lease  of  the  Philadel- 
phia Gas  Works.  The  works  were  paid  for  and  doing  well,  furnish- 
ing $1  gas  and  making  a  profit  above  all  exi^enses,  deiireciation  and 
interest  on  the  value  of  the  plant,  if  the  value  of  the  free  gas  fur- 
nished the  city  is  included,  and  could  have  supplied  good  gas  at 
75  cents  if  Councils  would  have  authorized  proper  repairs  and  im- 
provements. Under  the  hypnotic  influence  of  the  monopolists 
Councils  refused  to  do  this,  and  purposely  withheld  not  only  im- 
provements, but  needed  repairs,  in  order  to  disparage  the  works 
in  every  possible  way.  The  people  understood  the  situation  and 
were  overwhelmingly  against  the  lease. '^  But  the  attorneys  and 
lobbyists  of  the  monopolists  had  more  influence  in  the  Councils 
than  the  people,  and  "despite  the  public  protests,  despite  the  public 
indignation  and  despite  the  very  much  better  offers  of  competing 
companies,  the  United  Gas  Improvement  Company,  controlled,  as 
it  is,  by  those  who  have  already  secured  the  street  railway,  electric 
lighting  and  gasoline  franchises  and  privileges,  was  able  to  carry 
the  day."" 

Some  time  ago  a  professor"  in  a  prominent  Pennsylvania  Univer- 
sity was  given  to  understand  that  if  he  w^ould  give  an  opinion 
favorable  to  the  lease  or  sale  of  the  w^ater  w^orks  of  his  city,  his 
opinion  would  be  worth  fully  $25,000,  and  he  says  that  prices  have 
risen  since  then." 

One  might  expect  the  wat€r  business  to  be  free  of  taint,  but  it  is 
not  so,"  and  the  reasons  are  quite  clear  when  you  come  to  think 
of  it.  Suppose  a  water  company  is  seeking  a  franchise,  and  finds 
that  the  rates  it  favors  will  bring  in  $10,000  or  $20,000  more  than 
those  proposed  by  the  City  Council.  This  difference  for  even  one 
year  of  a  twenty  year  franchise,  judiciously  distributed  among 
prominent  councilmen,  or  handed  to  the  leader  of  the  dominant 
party  in  the  Council,  may  mean  a  gain  to  the  company  of  $190,000 
to  $380,000  during  the  life  of  the  franchise. 

The  Governor  of  a  great  state  was  offered  20,000  shares  on  option, 
without  cash  down,  if  he  would  sign  a  certain  franchise  measure, 
which  he  was  told  if  signed  would  probably  raise  the  value  of  the 
said  shares  from  $1,400,000  to  $2,000,000,  yielding  him  $600,000  clear 
profit.  He  did  not  sign  the  bill,  but  his  successor  did,  and  the  rise 
of  value  was  even  greater  than  had  been  predicted." 


"  See  full  statement  by  Prof.  Bemls  in  Mimic.  Monops.,  pp.  602,  et  seq. 

"  The  Hon.  Clinton  Rogers  Woodruff,  Sec.  Municipal  League  of  Phila- 
delphia and  of  the  Natl.  Muuic.  League,  and  member  of  the  Pa.  Legislature, 
in  American  Journal  of  Sociology,   Mar.,  1898. 

"  Statement   of   Prof.    Bemls,    Munic.    Monops.,   p.   656. 

"  See  M.  N.  Baker's  strong  words  In  Municipal  Monopolies,  p.  48. 

"Prof.   Bemls  in  Municipal   Monopolies,   p.   657: 

I  am  told  by  the  Hon.  John  Wanamaker  that  while  he  was  Postmaster 
General  $1,000,000  was  offered  if  he  would  withdraw  the  La.  Lottery  Bill, 
and  another  million,  coming  from  Western  Union  sources,  felt  its  way 
among  those  close  about  him  to  ascertain  if  it  would  do  to  offer  Itself  for 
the  withdrawal  of  the  Postmaster  General's  bill  for  a  Postal  Telegraph.     In 


76  THE  CITY  FOK  THE  PEOI'LE. 

In  an  address'"  to  the  Ohio  Gas  Light  Association,  Mr.  Dohert>, 
of  the  Columbus  Gas  Company,  said:  "Keep  the  newspapers  on  your 
staff,  also  the  city  authorities."  He  proceeded  to  describe  a  plan 
for  giving  shares  of  stock  to  the  managers  and  proprietors  of  news- 
papers on  note  at  less  interest  than  the  earning  capacity  of  thfe 
stock,  and  with  the  privilege  of  paying  off  the  note  at  any  time, 
or  of  giving  up  the  stock,  by  endorsement  of  which  the  note  was 
secured,  if  they  preferred  to  do  that.  In  other  words,  the  news- 
paper man  makes  no  outlay,  takes  no  risks,  and  if  the  stock  pays 
good  dividends,  or  rises  in  value,  he  is  a  gainer,  wherefore  he  will 
feel  an  interest  to  work  for  the  success  of  the  comijany.  The  plan 
being  made  clear,  Mr.  Doherty  says,  "To  be  brief,  it  should  be  our 
business  to-day  to  keep  the  stock  of  oue  companies  distributed 
among  those  who  are  in  a  position  to  promote  the  welfare  of  our 
business." 

In  the  Cleveland  gas  case  it  was  in  evidence  that  editors  of  lead- 
ing papers  and  other  influential  people  were  supplied  with  free 
gas,  and  it  was  admitted  that  $24,000,  which  was  charged  to  "insur- 
ance and  depreciation"  (in  1890  and  1891,  when  the  entrance  of  a 
competing  gas  company  was  being  defeated  in  Council),  did  not 
go  to  those  purijoses  at  all,  but  to  expenses,  the  nature  of  which 
the  secretary-treasurer  could  not  remember,  and  for  which  he  had 
no  vouchers  or  written  memoranda,  altho  the  expenditure  of  every 
cent  for  other  purposes  was  jilainly  accounted  for  in  his  books. 

A  high  authority  in  Boston  gas  negotiations  said  in  1897,  "The 


a  speech  at  Williams  Grove,  Pa.,  Sept.,  1898,  Mr.  Wanamalcer  spoke  of 
tlie  relations  of  tiie  corporations  and  tlie  Quay  macliine  in  tlie  following 
terms:  "The  principal  allies  and  partners  of  the  machine  are  the  corpor- 
ations. »  *  *  The  corporation  employees  of  the  State  are  controlled  for 
Quay's  use.  *  *  •  The  steam  railroads  of  the  State  employ  85,117  men, 
and  pay  them  annually  in  wages  $49,400,000.  ♦  *  The  great  street  railways 
of  the  State,  which  have  received  valuable  legislative  concessions  for  nothing, 
give  the  machine  loyal  support  with  12,079  employes,  who  are  paid  in  salaries 
$6,920,692  every  year.  That  monopoly    of    monopolies,    the    Standard 

Oil  Company,  pays  annually  $2,500,000  to  its  3,000  employees  who  arc  taught 
fidelity  to  Senator  Quay's  machine.  The  Bethlehem  Iron  Works,  whose 
armor  plates  are  sold  to  the  Government  for  nearly  double  the  contract 
price  offered  to  foreign  countries,  influence  their  employees  to  such  an 
extent  that,  in  the  city  of  Bethlehem,  It  has  been  found  dilflcult  to  get 
men  to   stand  as   anti-Quay   delegates.  The    thousands   of   working 

men  of  the  Carnegie  Iron  W'orks,  it  is  said,  are  marched  to  the  polls  under 
the  supervision  of  superintendents  and  foremen,  and  voted  for  Quay  can- 
didates under  penalty  of  losing  their  jobs.  The  great  express 
companies,  who  furnish  franks  to  machine  followers,  one  of  which  is  bossed 
by  Senator  Piatt,  with  their  thousands  of  men,  can  be  counted  on  for 
great  service  to  the  machine.  The  telegraph  companies,  whose 
State  officials  can.  It  is  said,  be  found  at  the  inner  Quay  councils,  with 
the  thousands  of  employees  distributed  at  every  imporant  fioint  throughout 
the  State,  and  before  whom  a  large  share  of  all-important  news  must  pass. 
Is  one  of  the  most  dangerous  parts  of  the  Quay  machine.  The 
interests  of  the  corporations  and  those  of  the  masses  have  been  diverging 
for  many  years,  until  now  what  is  for  the  people's  good  will  not  suit  the 
corporations,  and  what  will  seemingly  satisfy  the  corporations  is  no  longer 
safe  to  the  people.  »  *  »  Capital  with  its  manifold  possibilities  for  good 
In  itself,  becomes  an  agency  of  wrong  and  calamity  when  hjiruesspd  with 
favored  legislation.  Unscrupulous  Pennsylvania  corporations  have 
been  willing  to  purchase  advantageous  legislation  and  dishonest  political 
leaders  have  made  a  business  of  selling  it  to  them.  *  *  *  The  Qua? 
machine  In  Pennsylvania  •  *  deals  excluslvelv  in  legislative  privileges, 
and  demands  its  price,  and  the  corporations  are  its  patrons." 

"  At  Cincinnati,  Mar.  18,  1896  (Progressive  Age,  April  1,  1896). 


PUBLIC   0■\V^-ERSIIIP   OF   PUBLIC    UTILITIES.  77 

Massachusetts   Pipe   Line's   mongrel    charter,   procured     from   the 
1896  Legislature,  cost  about  $500,000."  " 

But  the  most  remarkable  of  all  gas  frauds  and  corruptions,  in 
^lassachusetts,  at  least,  were  those  unearthed  in  Boston  a  few 
years  ago  by  a  legislative  investigation  started  by  the  Hon. 
Xathan  Mathews,  who  was  ]Mayor  of  the  city.  It  appears  that  a 
Delaware  man,  by  the  name  of  J.  Edward  Addicks  (since  promi- 
nent in  politics)  obtained  a  franchise  in  ;Massachusetts  for  the 
"Bay  State  Gas  Company"  (which  was  practically  himself),  with 
a  right  to  issue  $500,000  of  stock,  and  no  more.  He  then,  under  the 
laws  of  Pennsylvania,  organized  the  "Beacon  Construction  Com- 
pany" (which  was  also  practically  himself,  as  he  owned  14,980  of 
15,000  shares).  The  Bay  State  secured  from  the  city  the  privilege 
of  laying  its  pipes  thru  the  streets  on  condition  that  it  would  lay 
pipes  in  every  street  where  the  Boston  Gas  Light  Company  had 
pipes.  The  Bay  State  Company  (Addicks)  then  made  a  contract 
with  the  Beacon  Company  (Addicks)  by  which  the  Beacon  Company 
was  to  build  works  and  lay  pipes  as  specified,  and  the  Bay  State 
was  to  pay  the  Beacon  $5,000,000,  consisting  of  the  $500,000  in  stock 
and  a  414  million  99  year  bond. 

Works  were  built  and  some  pipes  laid  when  the  Boston  Gas  Com- 
Company  opened  negotiations  resulting  in  an  agreement  by  which 
the  Baj^  State  Company  was  not  to  lay  any  more  pipes,  but  was 
to  manufacture  gas  and  sell  it  to  the  Boston  Company,  which 
was  to  distribute  it  to  the  people. 

When  construction  was  arrested,  the  Beacon  Company  (Addicks) 
had  expended  about  $550,000  in  building  gas  works  and  $200,000 
in  laying  pipes,  or  $750,000  total,  but  the  Bay  State  Gas  Company 
(Addicks)  had  a  meeting  (1889)  and  accepted  the  said  construc- 
tion in  full  performance  of  the  contract  of  the  Beacon  Construction 
Company  (Addicks)  and  turned  over  the  $500,000  of  stock  and  the 
$4,500,000  bond  in  payment  for  $750,000  worth  of  work,  thereby 
capitalizing  the  Bay  State  at  $5,000,000  on  a  real  value  of  $750,000. 
The  construction  bond,  with  the  acceptance  of  part  construction 
as  full  performance,  was  a  cover  for  the  evasion  of  the  Massachus- 
etts law  against  fictitious  capital,  and  a  shrewd  device  for  the  con- 
cealment of  enormous  profits. 

Under  the  compact  between  the  Bay  State  Gas  Company  and  the 
Boston  Gas  Company  (which  had  been  far  the  strongest  company 
in  the  city)  the  Bay  State,  in  1892,  made  gas  at  33  cents  per  thou- 
sand feet  and  sold  it  to  the  Boston  Company  at  $1  per  thousand,'" 


"Thos.  W.  Lawson,  till  lately  vice-president  and  director  in  sevprm 
Boston  companies,  and  the  negotiator,  as  he  says,  "of  the  various  settle- 
ments, deals  and  organizations  consummated  or  attempted  in  the  Boston 
gas  field  during  the  last  three  years,"  preceding  the  time  of  his  writing 
in  1897.     See  Munic.  Monops.,  p.  599. 

="  And  now.  a  decade  after  the  compact  spoken  of  in  the  text.  I  find 
in  the  papers   the   following  paragraph:  •  ,  «i  /■ 

"J.  Edward  Addicks,  the  gas  man  of  Delaware  and  other  places,  hiea 
In  the  United  States  Court  four  bills  in  equity  against  the  Boston  (^as 
Light   Company  and  allied  companies,   asking  for  an  injunction   restraiuing 


78  THE  CITY  FOK  THE  PEOPLE. 

which  in  turn,  sold  it  to  the  people  at  $1.30  per  thousand.  This 
arrangement  was  a  beautiful  one  thruout,  for  if  the  consumers 
asked  the  Gas  Commissioners  to  reduce  the  price  of  gas,  the  Boston 
Company  could  say,  "Why  how  in  the  world  can  you  expect  me  to 
sell  gas  for  less  than  $1.30  when  I  have  to  pay  $1  per  thousand  for 
it  under  my  contract?"  And  if  it  were  complained  that  the  Bay 
State's  profits  were  200  per  cent,  on  the  cost  of  production — 90  per 
cent,  on  its  entire  stock — it  could  point  the  complainor  to  the  fact 
that  it  had  to  pay  interest  on  a  $4,500,000  bond. 

The  Boston  Gas  and  three  other  companies  combined  with  the 
Bay  State  to  foi-m  what  was  known  as  the  Boston  Gas  Syndicate, 
or  Gas  Triist.-^  The  consolidation  was  completed  in  1889,  and  the 
capitalization  was  $17,000,000,  or  $13,365,000  above  the  lawful  capi- 
talization of  the  companies  involved — $4,640,000  was  excess  of  mar- 
ket value  above  par  at  the  time  of  consolidation,  about  $2,000,000 
was  excess  of  prices  paid  by  the  combine  for  stock  of  the  com- 
ponent companies  over  and  above  the  existing  market  values,  and 
about  $7,000,000  was  pure  unadulterated  water.  The  Boston  Gas 
Company's  stock  ($500  par)  was  selling  in  1889  for  $900  a  share, 
but  the  combine  paid  $1200  a  share  for  it  in  stock  and  bonds  and 
cash.  Koxbury  stock  (par  $100)  was  selling  at  $190,  and  the  Trust 
paid  $225,  etc. 

The  five  men  chiefly  concerned  in  this  conspiracy  against  the  Com- 
mon law  and  the  Corporation  law  of  Massachusetts  made  large 
fortunes  out  of  the  transaction.  The  bond  acted  as  a  sort  of  con- 
duit pipe  to  convey  the  profits  collected  from  the  people  of  Boston 
out  of  the  state  and  away  from  the  control  of  its  laws  into  the 
treasury  of  a  foreign  corporation  at  a  rate  which  would  have  made 
the  total  burden  of  the  bond  and  its  interest  amount  to  nearly 
$40,000,000,  which  the  people  of  Boston  were  to  pay  substantially 
for  nothing — almost  wholly  a  monopoly  tax  under  the  concealment 
BJid  protection  of  the  fraudulent  bond.  And  the  Trust  served  to 
increase  the  profits  available  for  abstraction.  The  profits  went  from 
$450,000  to  $874,000,  or  about  double  (in  1892)  what  they  were  (in 
1888)  before  the  Trust  got  control,  while  the  cost  of  manufacture 


the  defendants  from  carrying  out  the  contracts  between  them  and  the 
Massachusetts  Pipe  Line  Company,  under  which  the  latter  Is  to  supply  the 
former  with  all  Its  gas  for  the  next  fifty  years  at  twenty  cents  per  1,000 
cubic  feet.  Mr.  Addleks  alleges  that  the  contract  is  fraudulent  and  Illegal, 
and  asks  that  it  be  declared  null  and  void." 

Mr.  Addicks  is  probably  right  about  the  character  of  the  contract.  He 
la  an  expert  In  such  cases.  The  contract  tends  to  shut  out  competition 
and  the  cost  of  gas  may  sink  far  below  the  agreed  price  during  the  life 
of  the  contract.  Mr.  Addicks  sees  very  cloarlv  that  a  contract  to  buy  gas 
of  the  Mass.  Pipe  Line  at  20  cents  is  fraudulent,  but  a  contract  to  buy 
gas  of  Ms  Bau  State  Co.  at  $1  when  It  made  the  gas  for  33  cents,  was  very 
good  in  his  sight. 

"  The  stocks  of  the  companies  were  assigned  to  the  Mercantile  Trust 
Company  of  New  York  as  security  for  the  bonds  and  stock  of  the  Bay 
State  Gas  Company  of  New  Jersey,  which  were  largely  used  In  paving 
for  the  Boston  stock.  The  Bay  State  bond  was  transferred  by  the  Beacon 
Construction  Company  to  the  Bay  State  Gas  Company  of  Delaware  (another 
Addicks  company)  and  the  stock  and  bonds  of  the  Delaware  Company  were 
also  used  in  paying  for  Boston  stock.  All  this  was  to  get  out  from  under 
the  laws  of  Massachusetts  so  far  as  possible,  and  to  get  the  bond  into 
the  bauds  of  "third  parties." 


PUBLIC   OWNERSHIP  OF   PUBLIC  UTILITIES.  79 

fell  from  above  40  cents  to  33  cents.  The  Trust  abolished  the  dis- 
counts that  had  been  allowed,  and  thereby  raised  the  average  price 
8  cents  a  thousand. 

In  one  respect,  hov^'ever,  it  was  not  economical.  It  paid  big  sala- 
ries. In  1887  the  aggregate  salaries  paid  the  presidents,  treasurers 
and  directors  of  the  five  companies  was  $18,160;  but  in  1892  the 
amounts  paid  by  the  Trust  for  salaries  for  president,  treasurer  and 
directors  were  $60,930,  or  more  than  three  times  as  much  for  the 
single  organization  as  for  the  five  separate  companies,  and  of  this 
extravagant  total  $25,000  was  the  salary  of  Mr.  J.  Edward  Addicks, 
who  spent  his  time  in  Philadelphia,  Wilmington,  Brooklyn  and 
New  York,  and  only  came  to  Boston  to  testify  that  he  didn't  know 
anything  about  gas.  The  organizers  even  paid  $150,000  in  pensions 
and  gratuities  to  retiring  officers  of  the  Boston  Gas  Company,  and 
had  the  impudence  to  capitalize  the  amount,  as  they  did  also 
$350,000  "expenses  of  the  Boston  Gas  Syndicate,"  including  $250,000 
to  the  trustees  for  organizing  the  Trust. 

The  Bay  State  rented  its  fifteen  miles  of  pipe  to  the  Boston  Gas 
Company  at  a  rental  which  in  two  years  paid  back  to  the  Bay  State 
the  whole  $200,000  which  its  pipe  lines  had  cost.  The  Bay  State 
also  bought  tar  of  the  other  four  companies  to  the  extent  of  $29,000 
in  two  years  and  sold  it  for  $49,000.  The  Trust  bought  coal  of  Ad- 
dicks' Delaware  Company  at  a  uniform  advance  above  the  market 
price,  adding  $33,700  to  the  operating  cost  of  the  Boston  Gas  Com- 
pany alone.  Anything  to  turn  profits  into  the  hands  of  the  Dela- 
ware man  and  enamel  the  process. 

In  less  than  four  years  the  Trust  took  from  the  people  of  Boston 
over  $2,000,000  in  monopoly  taxes  above  8  per  cent,  on  the  lawful 
capitalization.  It  turned  in  false  statements  to  state  officers  and 
swore  to  them.  It  broke  its  agreement  with  the  city  of  Boston 
and  never  fulfilled  the  condition  upon  which  it  was  permitted  to 
lay  its  pipes  in  the  city  streets.  It  violated  a  dozen  statutes  of  the 
state  of  Massachusetts,  besides  breaking  the  Common  law  into 
splinters.  And  when  Nathan  Mathews,  the  Mayor  of  Boston,  sought 
to  have  the  Syndicate  investigated,  there  was  a  tremendous  fight 
to  keep  the  facts  from  the  light.  Even  the  Gas  Commissioners 
were  so  under  the  thumb  of  the  Trust  that  they  tried  to  suppress 
some  of  the  most  vital  facts  in  their  possession. 

The  Bay  State  paid  two  lawyers  in  the  Eing  $20,000  for  "legal 
expenses"  at  the  start,  though  there  was  no  litigation  at  the  start, 
nor  any  legitimate  legal  expenses  beyond  drawing  a  few  papers — 
no  legal  expenses  unless  the  expenses  of  obtaining  the  license  from 
the  Board  of  Aldermen  could  be  called  "legal." 

The  Bay  State  started  with  a  pretence  of  competition,  but  with 
the  intent  to  capture;  they  built  their  works  in  Dorchester  and 
laid  big  mains  into  Boston.  Thej-  ran  a  main  up  to  the  Eoxbury 
works  and  then  said:  "Now,  gentlemen,  take  your  choice.  If  you 
want  to  go  on  with  the  gas  business,  go-right  on;  but  if  you  don't 
give  up  your  business  to  us  we'll  parallel  everj^  foot  of  your  pipes, 
and  we  will  do  the  gas  business,  and  j^ou  will  perish." 


80  THE  CITY  FOR  THE  PEOPLE. 

Well,  the  Mayor  brought  out  the  facts  before  a  committee  of  the 
Legislature,  and  demanded  that  the  Bay  State  charter  be  forfeited 
and  its  assets  distributed.  And  the  Hon.  George  Fred.  Williams 
quoted  these  memorable  words  from  the  United  States  Supreme 
Court  in  Loan  Association  vs.  Topeka,  21  Wallace,  655:  "If  the  char- 
ter granted,  whether  by  special  act  or  under  general  law,  is  used 
not  for  the  public  benefit,  but  for  the  public  injury,  it  is  not  only 
the  right  but  the  duty  of  the  Legislature  to  revoke  that  charter." 

Seven  of  the  committee  signed  a  majority  report  against  revoca- 
tion. The  report  bears  strong  evidences  of  corporation  bias  and 
even  denies  that  the  Bay  State  bond  was  a  fraud  (p.  151),  tho  ac- 
knowledging that  it  was  mostly  fictitious — "o  dear  bargam  to  give 
this  obligation  of  $4,500,000  for  the  Bay  State  plant,  costing  not 
less  than  $750,000  to  $1,000,000"  (p.  148),  "but  who  can  say  that  they 
had  not  the  legal  right  to  enter  into  such  a  bargain,  and  who  can 
take  exception  thereto?  Certainly  no  one  but  the  stockholders 
of  the  company  or  its  creditors  then  existing;  but  there  were  no 
creditors,  and  the  stockholders,  at  a  legal  meeting,  afterwards 
ratified  it."  (p.  149.)  According  to  these  gentlemen  the  pvblic  ap- 
pears to  have  no  rights  that  corporations  are  bound  to  respect. 
A  minority  report,  signed  by  six  of  the  committee,  states  the  case 
fairly  and  says:  "We  are  of  the  opinion  that  the  methods  above 
shown  of  conducting  the  affairs  of  the  Bay  State  Gas  Company  of 
Massachusetts,  in  evading  the  statutes  of  the  Commonwealth  pro- 
vided for  the  very  purpose  of  regulating  the  corporations  organ- 
ized under  its  laws,  and  protecting  the  public  from  the  abuse  of 
the  privileges  conferred  \ipon  such  corporations,  and  particularly 
in  the  issuing,  ratifying  and  paying  interest  upon  said  fictitious 
obligation  at  the  rate  of  ninety  per  cent,  of  its  entire  net  earnings, 
is  sufficient  reason  for  revoking  the  charter  of  said  company,  if 
the  Legislature  can  devise  no  other  means  of  annulling  the  said 
fictitious  obligation."  (p.  160.)  Another  committeeman  made  a 
little  report  of  his  own  in  which  he  said  that  "on  giving  up  the 
note  for  $4,500,000,  which  appears  to  be  a  fictitious  note  of  no  value," 
some  arrangement  should  be  reached  by  which  the  Company  could 
go  on.  He  did  not  think  it  necessary  to  take  away  the  charter 
of  the  Bay  State  Company.  The  Legislature  passed  an  act  (ch. 
474,  1893)  revoking  the  said  charter  on  Dec  1st,  1893,  unless  before 
that  time  the  Bay  State  obligations  for  $4,500,000  should  be  legally 
cancelled  and  discharged  and  surrendered  to  the  Commissioner  of 
Corporations.  The  act  permitted  the  company  to  capitalize  at  the 
market  value  of  its  property  as  estimated  by  three  Commissioners. 
The  obnoxious  obligation  was  cancelled  and  surrendered  and  the 
company  was  allowed  to  continue  its  career  with  a  capitalization 
cut  down  from  $5,000,000  to  $2,000,000.  Some  of  the  most  import- 
ant portions  of  the  proceedings  were  omitted  from  the  official  re- 
port of  the  investigation,  and,  most  remarkable  fact  of  all  perhaps. 
Mayor  Matthews  the  hero  of  the  battle,  went  from  the  Mayoralty 
to  the  presidency  of  the  Bay  State  Gas  and  its  allies  at  a  salary  of 
$25,000  a  year. 


PUBLIC   OWJfERSHIP   OF   PUBLIC   UTILITIES.  81 

The  Bay  State  Gas  transactions  were  a  fraud  from  beginning  to 
end;  a  fraud  on  the  city,  a  fraud  on  the  state,  a  fraud  on  the  con- 
sumers, a  fraud  on  other  companies,  a  fraud  on  the  Common  Law, 
and  they  inoculated  the  Gas  Commission  and  the  government  with 
the  virus  of  disloyalty  to  the  public  interest.^^ 

Only  a  small  proportion  of  the  frauds  in  the  ocean  of  monopo- 
listic corruption  ever  come  to  the  surface,  and  those  above  men- 
tioned are  but  a  fraction  of  the  cases  that  have  come  to  light,  but 
space  will  permit  no  more.^ 


DEFIANCE  OF   LAW. 

9.  Defiance  of  Laic  and  Justice  is  a  distinguisliing  charac- 
teristic of  private  monopoly.  Everything  that  has  been  said 
in  the  eight  preceding  sections  is  in  evidence  under  this  head. 
The  very  existence  of  private  monopoly  is  a  violation  of  the 
fundamental  principles  of  justice  and  constitutional  law  on 
which  our  institutions  are  based.     (See  Section  3.) 

In  Chicago  the  City  Railway  Company  has  not  hesitated  to  de- 
liberately smash  up  and  completely  destroy  property  of  the  Gen- 
eral Railway  Company  during  a  dispute  between  the  companies  as 
to  the  right  to  use  certain  tracks.'  A  serious  battle  in  the  streets 
was  narrowly  escaped.  During  the  great  Railway  Union  strike 
in  Chicago,  according  to  the  Chief  of  the  Police  Department  in  that 
city,  and  the  opinion  of  Hon.  Carroll  D.  Wright,  expressed  to 
several  gentlemen  in  Boston,  the  railroads  secured  the  appointment 


"  See  Report  of  the  Bay  State  Gas  Trust,  City  Print.  1893;  Mass.  Gas 
Gommission's  Report,  1894,  p.  4.  In  W^all  Street  the  Bay  State  Gas  episode 
is  called  "The  Boston  Skin  Game,"  and  the  general  situation  is  termed 
the   "Beans  Mystery"   (Progressive  Age,  Jan.  15,  1898,  editorial). 

"  For  the  frauds  of  the  Western  Union  Telegraph  Co.  see  "The  Telegraph 
Monopoly,"  Arena,  Vol.  16,  pp.  70,  73,  discriminations;  pp.  74,  81,  control 
over  newspapers  and  interference  with  the  liberties  of  the  press;  pp.  186, 
189.  distribution  of  franks  among  Congressmen  and  Legislators,  influencing 
legislation  with  money,  and  even  aiding  two  attempts  to  steal  the  Presi- 
dency of  the  United   States. 

For  Standard  Oil  morality,  with  its  thefts,  perjuries,  briberies,  deceits, 
assaults,  conspiracies,  destructions  of  property,  attempts  to  ruin  honest 
business  men,  and  even  whole  classes  of  producers,  fraudulent  contracts 
with  railroads  and  other  violations  of  law,  see  Henry  D.  Lloyd's  "Wealth 
against  the  Commonwealth,"  published  by  Harper.  From  tlie  conspiracy 
to  blow  up  a  rival  refinery  and  the  plugging  of  the  Independent  Pipe  Line 
in  mid-country  to  the  forced  agreement  by  which  a  railway  undertook  to 
carry  oil  for  the  Standard  at  10  cents  a  barrel,  charge  rival  shippers  35 
cents  a  barrel,  and  pay  the  Standard  25  cents  out  of  each  35  thus  collected 
from  said  rival  shippers  (Handy  vs.  Cleveland  &  Marietta  Rd.  Co.,  31  Fed. 
Rep.  689),  the  record  of  the  Oil  Monopoly  is  a  record  of  fraud,  violence  and 
corruption. 

For  Railroad  frauds  see  Lloyd's  "Wealth  against  the  Commonwealth:" 
Chas.  Francis  Adams'  "Chapters  of  Erie;"  Stickney's  "Railway  Problem," 
:ind  Cowles'  "A  Gen'l  Freight  and  Passenger  Post."  The  statements  in 
the  latter  book  as  to  possible  rates  must  be  taken  with  some  allowance 
but  it  contains  many  valuable  facts  as  to  ralFway  methods.  The  question 
will  be  discussed  in  a  future  number  of  the  Equity  Series. 

1  Chicago  Gen'l  R'y  vs.  Chicago  City  R'y,  111.  Appellate  Court,  Oct.  Term, 
1893,   p.   521;   Municipal   Monopolies,   p.   532.    (See  Appendix   II   C.   2.) 


82  THE  CITY  FOR  THE  TEOPLE. 

of  several  thousand  thieves,  thugs  and  toughs  from  the  city  slums 
as  special  United  States  police  or  deputy  marshals,  and  thru  them 
the  roads  accomplisht  the  burning  and  destruction  of  a  large 
number  of  cars,  in  order  to  accuse  the  strikers  of  violence  and  turn 
public  sentiment  against  them.  The  roads  afterward  claimed  dam- 
ages, and  made  the  city  pay  for  the  property  they  had  themselves 
destroyed.     (See  Rep.   Supt.   Police,   Chicago,  Jan.,   1895,  p.   17.) 

The  ordinance  under  which  the  new  railway  in  Detroit  is  ope- 
rated requires  3-cent  fares  in  the  daytime.  This  new  road  is  now 
controlled  by  the  old  company,  the  Detroit  Citizens'  Railwa3%  the 
two  roads  having  the  same  officers  and  the  same  power  house. 
When  the  old  company  absorbed  the  new,  the  frequency  of  service 
on  the  new  lines  was  much  reduced.  It  was  clear  that  the  company 
was  aiming  at  a  practical  nullification  of  the  ordinance  by  driving 
passengers  to  the  other  roads.  A  great  deal  of  complaint  was  made, 
and  it  was  charged  that  the  company  was  trying  to  ruin  the  new 
road  and  kill  the  progress  of  the  low-fare  movement  by  making 
it  a  financial  failure  in  Detroit.  The  company  denied  this,  but 
recently,  when  the  franchises  of  the  roads  were  to  be  valued  pre- 
paratory to  the  proposed  purchase  by  the  city,  the  company's  offi- 
cers desired  that  the  franchise  terms  of  all  the  lines  should  be 
averaged,  and  the  value  calculated  on  the  average  earnings  and 
the  average  term  for  the  whole  system.  Professor  Bemis,  how- 
ever, insisted  on  valuing  the  franchise  of  each  road  separately, 
and  an  official  remarkt  that  that  method  would  be  very  much 
against  the  interest  of  the  company,  because  the  longest  franchise 
term  by  far  was  on  the  new  road,  which  they  had  been  trying  to  ruin. 

In  Cleveland,  as  we  have  seen,  "The  street  railway  interest,"  ac- 
cording to  Dr.  Hopkins,  "has  prevented  the  enforcenaent  of  nearly 
every  law  which  it  has  not  cared  to  obey."  In  Philadelphia,  Boston, 
New  York  and  Chicago  the  street  railway  interest  is  in  the  habit 
of  having  the  law  made  to  suit  itself,  but  if  it  fails  in  this,  it  does 
not  hesitate  to  defy  or  evade  an  inconvenient  statute  or  ordinance. 
The  Philadelphia  companies  refused  to  obej'  the  fender  laws  until 
repeated  fines  compelled  them  to  act,  and  then  they  fitted  the  cars 
with  miserable,  cheap,  heavy,  clumsy,  dangerous  evasions  of  the 
law.     Similar  episodes  have  occurred  in  other  cities. 

Perhaps  the  commonest  breaches  of  the  law  by  the  great  mono- 
polies relate  to  taxation.  In  Cleveland  the  street  railways  reported 
for  taxation  $1,869,000,  or  1/14  of  the  capitalization,  1/G  of  the 
claimed  actual  investment,  and  about  14  of  the  cost  of  duplication. 
The  rule  calls  for  60  per  cent,  of  actual  values.^ 

In  St.  Louis  the  Missouri  Bureau  of  Statistics  found  the  street 
railways  assest  $11  on  each  $100  of  value,  while  property  in  general 
was  assest  at  more  than  $50  on  the  hundred.  Some  private  prop- 
erty was  assest  at  95  per  cent,  of  its  market  value,  while  the  St. 
Louis  railways,  with  a  market  value  of  $37,987,000,  were  assest  only 


'Cleveland  St.   Rys.,  Hopkins,  p.  376. 


PUBLIC   OWXEESHIF  OF   PUBLIC   UTILITIES.  83 

$4,246,190.  They  are  willing  to  pay  interest  and  dividends  on  nearly 
nine  times  as  much  as  they  wished  to  pay  taxes  on.  The  Lindell 
system  of  street  railways  cost  $1,298,000,  was  capitalized  at  $7,000,- 
000  and  assest  at  $769,720.  It  jjaid  over  4  per  cent,  interest  and  divi- 
dends on  the  whole  capitalization,  and  23  per  cent,  on  actual  invest- 
ment, but  was  "so  poor"  it  could  only  pay  taxes  on  about  a  tenth  of 
its  market  value.  The  People's  Railway  track  was  originally  assest 
at  $15,000  a  mile,  but  when  the  president  of  the  People's  Railwav 
was  appointed  a  member  of  the  Board  of  Equalization,  the  assess- 
ment was  reduced  to  $9000  a  mile.  The  president  was  veilling  to 
help  the  other  companies  also.  Tn  1894,  186  miles  of  track  were 
assest  at  $2,142,650.  But  in  1895,  with  the  People's  president  on 
the  Board,  216  miles  of  track  (or  30  more  than  in  1894)  were  as- 
sest at  only  $1,718,930,  or  $500,000  less  than  the  year  before.  At 
this  rate  the  growth  of  the  city  and  increase  of  track  will  reduce 
the  street  railway  taxes  to  zero. 

The  Union  Depot  Line  had  54  miles  in  operation,  according  to  its 
return  to  the  City  Register  April,  1894,  34  miles,  according  to  its 
return  to  the  City  Assessor,  June  1,  1894,  and  76  miles,  according 
to  the  survey  of  a  competent  civil  engineer,  November  5,  1894. 
Taking  the  company's  own  returns,  the  city's  loss  at  the  regular 
tax  rate  was  $2800,  and  on  the  engineer's  report,  adopted  by  the 
Missouri  Labor  Bureau  as  the  true  figure  (which  is  just  if  care  was 
taken  to  ascertain  that  the  company  did  not  build  the  additional 
miles  between  June  and  November),  the  city  was  cheated  out  of 
$5880,  or  more  than  half  the  tax  due  under  the  law. 

Under  the  law  the  railways  must  pay  $25  tax  on  each  car  ope- 
rated, and  are  subject  to  a  fine  of  $100  to  $200  for  each  unlicensed 
car  used  in  carrying  passengers  within  the  city.  In  1895  the  rail- 
way officials  returned  sworn  reports,  giving  the  number  of  cars 
used  as  714.  An  agent  of  the  Bureau  watcht  the  cars  in  use  on  the 
streets,  took  down  the  number  of  each  and  found  903  cars  in  use, 
indicating  a  fraud  on  the  city  of  $4725  license  fees  in  one  year. 
In  June,  1896,  the  companies  swore  to  722  cars,  but  if  you  went  to 
the  Railway  Advertising  Company  they  would  guarantee  to  put 
j'our  advertisement  in  926  cars  running  every  day  in  St.  Louis.  At 
the  time  when  the  company  was  paying  license  tax  on  714  cars 
and  the  Bureau  found  903  in  use,  the  assessor  found  that  the  com- 
panies possest  1430  cars,  and  the  number  reported  to  the  Street 
Railway  Journal  was  1686,  or  5^4  per  mile  of  track.*  In  Kansas 
City  the  agents  of  the  Bureau  counted  133  cars  of  certain  lines  in 
use  March  7,  1896,  but  the  sworn  return  of  the  general  superin- 
tendent of  the  company  for  that  day  was  only  88  cars.  Every  count 
that  was  made  showed  a  similar  discrepancy.*    Perhaps  the  Kansas 


'  Report  of  Hon.  Lee  Meriwether,  Labor  Comm'r  for  the  State  of  Mo., 
1896.  pp.  3,  4,  63-7,  29,  14-16.  The  railways  absolutely  refused  to  give  the 
Labor  Bureau  the  slightest  assistance  in  Its  investigation.  From  start  to  finish 
every  attempt  to  get  information  from  railway  officials  was  met  with  a 
rebuff.  In  order  to  do  everything  possible  to  avoid  inaccuracies,  the  Com- 
i.iissioner  scut  a  draft  of  his  report  to  the  railway  officials  for  crificisms 
and  suggestions,  but  they  refused  to  make  any  beyond  a  few  irrelevant 
and  impudent  remarks;  they  would  say  nothing  at  all  about  the  facts,  pp,  6-8. 


84  THE  CITY   FOK  THE   PEOPLE. 

City  and  St.  Louis  railways  calculated  on  the  same  basis  as  tBi» 
Philadelphia  railways,  which  were  discovered  by  the  watchman  of 
the  Department  of  Public  Works  to  be  evading  the  law  by  chang- 
ing the  license  from  one  car  to  another;  a  car  going  out  of  the  citj 
limits  would  meet  a  car  coming  into  the  city  and  give  the  latter 
its  license,  so  that  quite  an  economy  of  licenses  was  effected. 

In  Chicago  the  Labor  Bureau  (1896)  found  that  the  North  Chicago 
Street  Eailway  Company  was  assest  only  $500,000,  or  2  per  cent, 
of  its  market  value.  The  West  Chicago  Street  Eailw^ay  was  assest 
at  $1,100,000,  or  3  per  cent,  of  its  market  value.  The  Special  Com- 
mittee of  the  Chicago  Common  Council  (1898),  with  the  Mayor  at 
its  head,  discovered  that  the  companies  were  operating  lines  in 
numerous  locations  for  which  the  public  records  showed  no  grants 
whatever.  The  companies  had  simply  helpt  themselves  to  the 
streets.  The  committee  called  the  attention  of  the  railway  officials 
to  this  and  other  important  matters,  and  askt  for  explanations, 
but  the  Chicago  City  Eailway  neglected  to  answer  the  committee's 
questions,  and  "the  North  and  West  Chicago  Companies,  thru  their 
president,  Mr.  Yerkes,  peremptorily  declined,  by  letter  to  the  Mayor, 
to  render  the  committee  any  assistance  or  recognition."* 

In  the  Bay  State  Gas  investigation,  Mayor  Matthews  and  Hon. 
•George  Fred.  Williams  enumerated  a  dozen  laws  which  the  evidence 
showed  had  been  violated  by  the  company.  It  takes  a  couple  of 
pages  in  each  report  of  the  Massachusetts  Gas  Commission  to  re- 
count the  violations  of  law  respecting  the  purity  and  candle  power 
of  gas."  In  the  Cleveland  gas  case  of  1888  the  company  defied  the 
■ordinance  reducing  the  gas  rate  from  $1.25  to  $1  per  thousand 
until  the  city  took  the  matter  to  the  courts  and  got  a  decision  sus- 
taining the  ordinance.'  Eesistance  to  laws  and  ordinances  reducing 
gas,  water,  electric  light,  street  railway  and  telephone  rates  has 
occurred  in  Detroit,  Indianapolis,  Des  Moines  and  many  ■  other 
places — indeed,  it  is  the  common  practice  of  the  companies  in  most 
states  to  resist  to  the  utmost  until  the  position  of  the  city  or  state 
has  been  establisht  by  expensive  litigation,  the  object  of  resistanc 
being  to  discourage,  so  far  as  possible,  all  exercise  of  the  public 
power  of  regulating  rates.' 

Sometimes  the  companies  nullify  a  reduction  without  open  re- 
sistence.  During  proceedings  for  securing  lower  gas  rates  a  tew 
years  ago,  an  official  of  one  of  the  companies  involved  was  heard 
to  remark  that  he  "did  not  care  what  they  did  with  the  rates  if 
they  only  left  the  pressure  alone."  '     The  company  could  increase 


*  Report  of  Spec.  Com.,  p.  16. 

» See  for  example  pp.  109-10,  Rep.  1894;  pp.  118  and  119,  Rep.  for 
1895;  pp.  153  and  154  Rep.  for  1898. 

»  State  vs.  Cleveland  Gas  L.  and  Coke  Co.,  3  Oh.  Cir.  Cits.,  251. 

'  In  Detroit,  when  the  railways  refused  to  obey  the  law  in  respect  to 
fares,  Mayor  Plngree  laid  the  basis  for  a  suit  by  offering  the  legal  faro, 
and  allowing  himself  to  be  ejected  from  the  car  for  refusing  to  pay  more 
than  the  legal  rate.  See  cases  cited  in  my  chapter  on  "The  Legal  Aspects 
->f  Monopoly"  in  Municipal  Monopolies,  p.  425.     Also,  p.  185. 

•This  may  help  to  explain  what  lias  long  been  Icnown  to  bo  a  fact,  viz.: 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  85 

the  pressure  and  force  enuf  gas  thru  the  meters  to  make  the  same 
total  profit  as  before.  Electric  light  companies  also,  unless  closely 
watcht,  can  and  do  evade  the  law  by  manipulating  current  and 
candle  power. 

These  companies  play  with  the  tax  laws  after  the  usual  corporate 
manner.  The  Boston  Electric  Light  Company  reports  $2,552,000 
assets  to  the  Commissioners  (1895),  and  is  assest  at  $710,900.  Even 
the  Edison  (Boston)  reports  $3,534,000  assets,  and  is  assest  at 
$1,208,000;  while  the  Worcester  Electric  reports  $349,270  assets, 
$304,500  capitalization  and  $253,300  assessment — over  2/3  instead  of 
1/3,  as  in  the  other  cases. 

What  a  dainty  plan  it  is  for  a  little  group  of  men  (women  are 
not  yet  sufficiently  "developed,"  thank  goodness)  to  pay  in  $100,000 
and  vote  themselves  stock  to  the  amount  on  its  face  of  $500,000! 
Or  better  still,  to  issue  a  million  of  stock  and  bonds,  keep  a  good 
lot  of  it,  give  your  friends  some,  and  the  legislators  and  council- 
men  some,  sell  the  rest,  build  the  works  with  a  part  of  the  money 
you  get  from  the  "bloomin'  public"  in  this  quiet  way,  spend 
another  part  to  buy  the  sort  of  politics  and  laissez-faire  adminis- 
tration your  business  needs  and  put  the  remainder  in  your  pocket; 
then  make  some  light,  charge  three  or  four  times  what  it  is  worth, 
get  a  contract  from  your  friends  in  power  to  light  the  city,  turn 
in  a  small  valuation  to  the  assessors  so  as  to  make  the  expenses 
light,  but  roll  up  the  capitalization  so  as  to  spread  out  big  profits 
over  a  large  surface  and  make  them  look  thin  and  small  to  the 
stingy  people  who  are  apt  to  object  to  a  man's  making  a  few  hun- 
dred per  cent. — nice  plan,  isn't  it?  Almost  as  good  as  a  bank  rob- 
bery for  getting  hold  of  other  people's  funds.  Almost  as  good  for 
rapidity,  and  a  great  deal  safer.  And  then  if  the  people  should 
wake  up  and  attempt  to  take  control  you  can  put  on  an  innocent 
look  and  tell  them  it's  mean  to  ruin  your  trade,  and  if  they  insist 


that  your  gas  bills  are  frequently  as  high  or  higher  when  you  consume 
Uttle  and  the  gas  Is  comparatively  low  in  price  as  when  you  consume  at 
the  ordinary  rate  and  gas  is  higher,  i.  e.  your  gas  bills  do  not  seem  to 
bear  any  definite  and  ascertainable  relation  either  to  the  price  per  thousand 
feet,  or  to  the  amount  you  consume.  Take  a  few  cases  from  the  argument 
of  Henry  R.  Legate  at  the  State  House  in  Boston  a  few  years  ago: 

"In  Cleveland,  O.,  gas  was  reduced  by  the  City  Council  from  $1  to  80 
cents  per  thousand,  but  the  gas  bills  grew  larger  Instead  of  smaller.  A 
citizen  writes  that  for  the  six  months  from  October  to  March,  1891-2,  his 
bill  was  $18.50  at  $1  per  thousand,  while  from  October  to  March,  1892-3,  his 
bill  was  $19.58  at  80  cents  per  thousand— the  conditions  being  the  same 
except  that  there  was  one  less  member  in  the  family  during  the  last  six 
months. 

"A  similar  comparison  from  H.  T.  Hickok,  of  Brooklyn,  N.  Y.  (where 
the  companies  were  compelled  to  reduce  their  charge  from  $1.50  to  $1.25> 
gives  six  months'  gas  at  $1.50,  $18.45,  and  the  same  six  months  the  following 
year  at  S1.25,  $21.88.  The  conditions  were  just  the  same,  but  the  lower 
the  prices  per  thousand  the  higher  the  bills  every  month.  Reduction  in 
gas  don't  reduce." 

The  United  States  Superintendent  of  Gas  In  Washington  reports  that 
"the  cause  of  large  bills  is  excessive  pressure  in  the  street  pipes." 

In  1892.  Henrv  M.  Cross  made  complaint  at  the  State  House  in  Bos- 
ton, as  counsel  for  the  United  States  Hotel,  the  Quincy  House  and  a  large 
number  of  other  gas  consumers,  whose  prices  had  been  advanced  30  per 
cent,  or  more  bv  the  Boston  Gas  Company,  as  appeared  from  the  Increased 
size  of  their  bills,  without  change  of  conditions.  Bills  of  the  United  States 
Hotel,  for  example,  showed  $492  for  January  of  one  year,  $592  for  January 
of  the  next  year,  and  $713  for  the  same  month  of  the  third  year  (1892), 
with  "no  addition  to  the  number  of  lights." 


86  THE  CITY  FOR  THE  PEOPLE. 

they  at  least  ought  to  buy  up  your  plant  at  the  entire  amount  of 
your  capitalization. 

But  be  careful,  else  some  eminent  and  respectable  citizens  may 
organize  a  new  company,  -with  the  "boss"  of  one  of  the  leading 
parties  at  its  head,  and  a  number  of  prominent  business  men, 
editors  and  officials  let  in  on  the  ground  floor  to  control  public 
opinion  and  the  councils,  and  incidentally  make  a  profit  for  them- 
selves thru  the  rising  value  of  the  new  stock.  The  new  company 
will  promise  lower  rates  and  vigorous  competition;  will  get  a  fran- 
chise— pay  for  it  in  cash  if  stock  and  persuasion  wont  do;  erect  a 
few  poles  to  hold  the  franchise,  and  then  make  overtures  to  you 
of  the  old  company.  It  is  wasteful  and  ungentlemanly  to  fight, 
so  you  sell  out  or  "consolidate"  at  two  to  twenty  times  the  real 
value  of  your  property,  and  the  reorganized  company  goes  to  work 
with  $500,000  of  bonds,  which  represent  the  actual  value  of  the 
plant,  and  $2,500,000  of  stock,  which  represent  the  right  of  way 
in  the  councils  and  the  influences  and  consciences  of  ten  or  a 
dozen  prominent  citizens  purchast  by  the  company  plus  the  greed 
and  impudence  of  the  corporators. 

Law  and  justice!  They  are  secondary  considerations  in  the 
electric  light  business,  or  the  gas,  water,  telephone  or  street  rail- 
way business,  or  the  business  of  any  powerful  monopoly.  There  is 
sonaething  much  more  worthy  of  its  regard,  and  that  is  the  al- 
mighty dollar." 


"  Elpctiic  companies  do  not  hesitate  to  bring  pressure  to  bear  to  Induoe 
manufacturers  of  electrical  machinery  to  boycott  municipal  undertakings. 
(Progressive  Age,  Aug.,  1897,  reporting  a  meeting  of  the  Northwestern  Elec- 
tric Association,  which  unanimously  and  enthusiastically  adopted  a  propos.il 
to  confer  with  manufacturers  of  electrical  apparatus,  secure  their  willingness 
to  be  guided  by  the  wishes  of  the  Association,  and  l£eep  them,  whenever  the 
Association  thought  best,  from  bidding  on  proposed  municipal  plants.) 

The  Wire  Nail  Trust  of  1895  compelled  manufacturers  of  wire  nail 
machines  to  break  contracts  with  Independent  nail  makers,  recall  machines 
delivered  to  the  carrier  under  such  contracts,  and  even  wreck  machines 
that  had  been  delivered  to  consignees.  ("Legal  Aspects  of  Monopoly,"  p. 
469.) 

The  Telegraph  Monopoly  does  not  hesitate  to  break  the  laws  of  the 
United  States  as  to  the  order  of  messages  and  the  facilities  to  be  given 
the  weather  service. 

The  Bell  Telephone  Company  is  believed  to  have  defrauded  the  public 
by  buying  up  and  nursing  the  Berliner  claim  of  priority  till  its  own  patent 
expired  and  then  by  bribery  and  collusion  securing  a  new  17-year  lease  of 
patent  monopoly  under  the  B.  claim.  The  charges  were  found  true,  and 
the  new  patent  set  aside  by  the  U.  S.  Circuit  Court,  but  the  Supreme 
Court  reversed  the  decision.  (See  my  chap,  on  The  Telephone  in  Municipal 
Monopolies,  pp.  326-7  and  U.  S.  vs.  Amer.  Bell  Tel.  Co.,  167  U.  S.,  224.) 

The  railroads  have  "defiantly"  gone  on  buying  hundreds  of  thousands 
of  acres  of  coal  land  In  Pennsylvania,  in  spite  of  the  express  prohibition 
in  the  Constitution  of  that  State,  and  neither  the  Legislaturt-  nor  the 
Supreme  Court  can  be  got  to  interfere,  for  the  railroads  own  them  both. 
(Lloyd's  "Wealth  against  the  Commonwealth."  pp.  18-10,  181,  citing  Con- 
gressional investigations  and  "Leading  Cases  Simplified,"  bv  J.  D.  Lnwson. 
who  warns  the  student  of  railroad  law  "not  to  pay  much  heed  to  the 
decisions  of  the  Supreme  Court  of  Pennsylvania— at  least  during  the  last 
ten  or  fifteen  years.  The  Pa.  Rd.  appears  to  run  that  tribunal  with  the 
same  success  that  It  does  its  own  trains.")  With  equal  success,  but  less 
openly  the  railroads  defy  the  laws  of  the  United  States  against  discrimina- 
tion, and  the  decisions  of  the  Interstate  Commerce  Commission.  (Lloyd, 
p.  19,  and  'The  Railway  Problem,"  p.  207,  by  A.  B.  Stlcknev.  then  Chair- 
man of  the  Board  of  Directors,  and  now  President,  of  a  g'reat  railway.) 
The  Interstate  Commerce  Law  provides  for  Imprisonment,  and  the  violations 
of  the  aw  are  numberless,  but  the  only  conviction  had  under  it  was  that 
of  a  shipper  for  discriminating  ngainst  a  railroad.  In  respect  to  the  Inter- 
state Law,  Stlckney  quotes  a  railway  president  as  saying  that  "If  all  who 


PUBLIC   OWNEESHIP  OF   PUBLIC   UTILITIES.  87 

have  otfended  against  the  law  were  convicted,  there  would  not  be  iaUt 
enuf  in  the  U.  S.  to  hold  them."  •' 

Mr.  Byron  W.  Holt,  a  high  authority  on  the  monopolistic  combinations 
called    trusts,    writes   as   follows    about   the   Sugar  Trust: 

'•The  Sugar  Trust  has  but  little  respect  for  law— except  the  special  laws 
which  lieep  out  foreign  refined  sugars.  It  has  repeatedly  concealed  Its 
books  from  Investigating  committees  and  refused  to  give  information  con- 
cerning its  stockholders,  the  use  made  of  Its  funds,  etc.  It  refused  to 
comply  with  census  laws  and  to  give  Information  to  the  Census  Department 
in  1890.  After  the  Attorney-General  had  tried  for  several  years  to  get  the 
information  required,  he,  acting  on  the  advice  of  the  Department,  abandoned 
the  case  because  it  was  then  so  late  that  the  Information  would  be  worth- 
less if  obtained.  Hence  the  1890  census  is  worthless  as  regards  an  industry 
whose  annual  product  is  valued  at  over  $200,000,000.  It  is  unlikely  thai 
these  trust  officials  risk  Imprisonment  and  go  to  so  much  trouble  and  expense 
to  preserve  unimportant  secrets."     (Review  of  Reviews,   Vol.   XIX,  p.  685.) 

A  GKEAT  LAW  BREAKER. 

The  standard  Oil  Monopoly  Is  well-known  to  be  one  of  the  arch-offenders 
of  the  age,  an  utterly  conscienceless  law-breaker  and  criminal.  (See  The 
Rice  Case,  31  Fed.  Reporter,  689;  Investigations,  Congress,  1872,  1888;  Pa. 
Legls.,  1872;  N.  Y.  Legis.,  1873,  "Erie  Invest.;"  1879,  "Hepburn  Report;" 
1883,  "Corners;"  1888,  "Trusts;"  Ohio  House,  1879;  Lloyds  "Wealth  against 
the  Commonwealth.")  It  is  of  great  importance  to  the  student  of  municipal 
affairs  to  have  some  knowledge  of  those  all-pervading  monopolies,  the  rail- 
roads, telegraph,  oil  trust,  etc.,  that  are  such  powerful  factors  In  the 
business  and  political  life  of  every  city.  The  Standard  Oil  is  of  special 
interest  because  of  its  tendency  to  own  and  control  the  gas  and  electric 
light  companies,  and  even  the  street  railways,  of  some  of  our  leading  cities 
—a  tendency  which  seems  to  amount  to  a  systematic  policy  of  expansion 
toward  complete  monopolistic  empire  in  the  directions  indicated.  The  pros- 
pect of  bringing  all  the  public  utilities  of  our  giant  cities  under  the  control 
of  the  Czar  of  the  Oil  Trust  may  be  alluring  to  the  Czar,  but  will  not  be 
pleasing  to  the  people;  yet  the  operations  of  the  Trust  in  Boston,  Philadelphia 
and  Chicago  Indicate  that  such  may  be  the  plan  of  the  oil  monopolists. 
Whether  this  be  true  or  not,  the  Trust  is  already  a  sufficiently  vital  factor 
in  municipal  affairs  to  make  a  study  of  its  character  indispensable  in  this 
connection,  and  I  therefore  subjoin  a  few  notes  about  some  specimen  points 
In  Its  record. 

In  1879,  the  Pres.,  Vfce-Pres.,  Sec,  Cashier  and  others— all  the  prin 
clpal  men  of  the  oil  combine — were  indicted  for  criminal  conspiracy,  but 
could  not  even  be  got  to  give  ball;  the  Supreme  Court  of  Pa.,  by  an  unheard- 
of  proceeding,  interfered  and  hung  up  the  indictments.  (Lloyd,  p"p.  170,  180, 
258.)  Afterward  (1885)  three  oil  trustees  and  others  were  indicted  at  Buffalo 
for  conspiracy  to  blow  up  a  refinery  regardless  of  life  (pp.  247-8,  250,  252, 
2.-.8.).  They  took  legal  advice  before  they  acted  to  see  what  would  be  th<- 
liability  under  the  criminal  law  of  arranging  an  explosion  (247).  They  after- 
ward tried  to  make  away  with  the  man  who  knew  the  facts — the  man  the 
trust  officers  had  deliberately  hired  to  blow  up  the  refinery  (268).  The 
jury  found  guilty  all  the  defendants  they  were  allowed  to  try  (285),  bni 
the  court  rendered  the  verdict  as  to  the  millionaire  trustees,  taking  the 
case  away  from  the  jury  so  far  as  the  trustees  were  concerned  (278),  altho 
they  were  clearly  Involved,  as  the  whole  evidence  showed  (pp.  247,  253, 
262,  284,  etc.).  The  judge  delayed  sentencing  those  who  were  convicted, 
and  at  last  fined  them  $2.50  (287)— 1250  fine  for  blowing  up  a  rival  refinery 
—and  6  cents  damages  for  breach  of  a  hundred-thousand-dollar  contract 
(196).  Popular  indignation  was  great,  but  by  some  mysterious  Influence 
that  judge  was  nominated  by  both  parties  for  the  Supreme  Bench,  and  will 
hold  his  seat  till  1904  (p.  297). 

The  Oil  Trust  owns  or  controls  gas  companies  in  Chicago,  Brooklyn, 
Columbus,  Toledo  and  other  cities  (337,  339).  In  Toledo  prices  were  fixed 
regardless  of  city  ordinances,  discriminating  grievously  between  consumers 
(306);  municipal  ownership  movement  started  (307);  Trust  subsidized  the 
press  and  bought  up  the  only  morning  paper,  an  able  advocate  of  the 
movement,  and  turned  its  guns  on  the  city  gas  plant  (317);  distributed 
pamphlets,  and  got  advertisements  in  N.  Y.  and  London  papers  to  destroy 
the  credit  of  the  city  and  prevent  sale  of  the  bonds  (318-9);  indictment 
of  the  Trust  agents  for  criminal  libel  in  relation  to  the  city's  gas  affairs 
(324);  the  war  with  the  Trust  cost  Toledo  $1,000,000  (p.  336,  and  see  below). 
During  the  struggle  the  Trust  got  up  a  "big  business  men's  protest"  against 
public  ownership,  which  proved  to  have  been  largely  signed  by  men  whose 
names  could  not  be  found  in  the  directory  (333). 

In  Columbus  some  gas  consumers  were  made  to  pay  twice,  some  three, 
and  some  even  four  times  as  much  as  their  neighbors  paid  for  like  service 
(365).  In  1891  the  gas  supply  was  shut  up  arbitrarily  and  suddenly  in 
midwinter,  and  the  people  were  informed  that  the  company  would  supply 
no  more  gas  till  the  City  Council  raised  the' price  (natural  gas)  from  10 
cents  to  25  cents  a  thousand  feet— an  increase  of  150  per  cent.  The  gas 
had  not  failed,  but  the  company  had  increast  Its  stock  from  $1,000,000  to 
$1,750,000,  and  must  have  more  money  to  pay  dividends  (.365).     Same  thing 


88  THE  CITY  FOR  THE  PEOPLE. 

at  Sidney,  O.  (806);  and  one  of  Toledo's  main  gas  pipes  disconnected  in 
winter  during  tlie  contest  with  the  Trust  (366),  Independent  pipe-line 
plugged  during  effort  of  Oil  Trust  to  ruin  the  line  (111 »:  another  pipe  line 
cut  and  the  oil  set  on  Are  (477-8).  Independent  well  drillers'  machinery 
blown  up  (154).  Silencing  newspapers  by  threatening  to  put  a  rival  In  the 
field  (160).  At  Fostoria,  Ohio,  gas  pipes  torn  up  to  ruin  a  manufacturer 
who  wlsht  to  hold  the  oil  and  gas  people  to  their  contract.  The  laborers 
who  did  the  work  were  convicted,  but  the  principal  escaped  (348-9).  The 
Independent  Atlas  Pipe  Line  torn  up  where  it  crost  the  Erie  lioad,  grappling 
irons  and  a  locomotive  being  used  (291).  At  Hancock,  K.  Y.,  the  pipe 
layers  of  the  independents  were  confronted  with  hundreds  of  armed  men, 
railroad  emplovees,  who  filled  up  trenches  and  tore  out  pipes,  put  a  cannon 
In  position,  and  left  a  garrison  to  go  into  winter  quarters  and  hold  the 
fort  (161-2). 

In  1894  it  was  shown  that  New  York  oil  consumers  were  paying  twice 
as  much  as  Philadelphia,  and  three  times  as  much  as  foreign  consumers 
buying  in  New  York  for  export  (425);  discrimination  against  Boston  (137, 
189);  Trust  selling  refined  oil  in  Europe  at  prices  lower  than  those  at  which 
crude  oil  could  be  delivered  from  America  (439).  When  an  Independent 
refiner  ran  the  blockade  into  New  York  in  1892,  oil  fell  in  New  York. 
Brooklyn  and  Jersey  City  from  8  and  8V2  cents  to  4  and  4i^;  and  in  St. 
Louis,  after  an  independent  company  succeeded  in  getting  a  foothold,  the 
price  of  the  best  grade  of  oil  fell  to  5  cents  from  14i^  (427). 

In  1872  the  Oil  combine  (then  called  the  South  Improvement  Co.)  secured 
a  secret  agreement  from  all  the  railroads  running  Into  the  oil  regions,  first 
to  double  freight  rates  on  oil;  second  not  to  charge  the  S.  I.  C.  the  increase; 
third  to  pay  to  the  S.  I.  C.  the  increase  collected  from  all  other  shippers. 
The  rate  to  Cleveland  was  to  be  raised  to  80  cents,  except  for  the  S.  I.  C, 
which  continued  to  pay  40  and  would  receive  40  of  the  80  paid  by  anyone 
else.  The  rate  to  Boston  was  raised  to  $3,  and  the  S.  I.  C.  would  receive 
$1.32  of  it.  The  S.  I.  C.  were  to  receive  an  average  of  $1  a  barrt^l  on 
the  18,000  barrels  produced  daily  in  the  oil  regions.  The  rates  were  raised 
as  agreed,  but  the  excitement  in  the  oil  regions  was  so  intense  that  mobs 
would  have  torn  up  the  tracks  of  the  railways  if  Scott  and  Vanderbilt  and 
the  rest  had  not  telegraphed  that  the  contracts  were  cancelled,  and  put 
the  rates  back  (46-7,  50,  55).  But  some  of  the  contracts  afterwards  came 
into  court,  and  had  not  been  cancelled  at  all  (51).  In  1874  the  roads  began 
gradually  to  carry  out  the  plan  that  had  been  stopt  by  popular  excitement 
in  1872  (p.  85).  Independent  producers  built  the  Tidewater  Pipe  Line. 
Roads  made  war  of  rates  to  kill  the  Pipe  Line.  Roads  finally  carried  390 
lb.  barrels  400  miles  for  10  cents  for  the  combine,  throwing  away  $10,000,000 
a  year  profits  that  belonged  to  the  road  stockholders  in  order  to  inflict  a 
$100,000  loss  on  the  Pipe  Line  and  help  the  Oil  Combine  in  which  the  road 
managers  were  interested,  or  under  the  control  of  which  they  acted  (109) 
"In  this,  as  in  all  the  moves  of  this  game,  we  see  the  railroad  managers 
of  a  score  of  different  roads,  at  points  thousands  of  miles  apart,  taking 
the  same  step  at  the  same  time,  like  a  hundred  electric  clocks  ticking  ail 
over  a  great  city  to  the  time  of  the  clock  at  headquarters  that  makes  and 
breaks  the  circuit."  (136).  By  corrupting  their  officers,  slandering  their 
credit,  buying  up  their  customers,  garroting  them  with  law  suits  founded 
on  falsehoods,  plugging  up  their  pipe  in  the  dark,  etc.,  the  Oil  Trust  tired 
out  the  Tidewater  folks,  and  they  sold  the  pipe  line  to  the  Trust,  which 
used  It  as  an  "oil  railway"  to  transport  their  own  oil,  and  left  the  railroads 
in  the  lurch  (104-116,  im.  The  Pennsylvania  Road  tried  at  one  time  to 
go  Into  the  oil  business  Itself,  but  the  Oil  Combine  served  notice  on  it 
to  abandon  the  field,  and  on  Its  refusal  to  comply  with  the  order,  the  other 
railroads  Instituted  a  war  of  rates  that  brought  the  Pennsylvania  Road  to 
terms,  and  it  sold  out  Its  oil  cars,  pipe  lines,  etc.,  to  the  Combine.  Thus 
the  oil  monopolists  brought  to  its  knees  the  greatest  corporation  then  in 
America  by  ordering  the  great  Railroad  War  of  1877  (87-8». 

When  the  Trust  got  possession  of  the  pipe  line  to  Buffalo  in  1882,  it 
raised  the  rates  from  10  cents  to  25  cents  a  barrel  (150  per  cent.)  and  the 
roads  raised  their  rates  at  the  same  time,  as  they  did  also  in  Pa.  In  188.5. 
The  railway  managers  used  their  powers  to  drive  traflic  from  the  railroads 
to  the  pipes  of  the  Trust.  Pittsburg  and  Cleveland,  had  similar  experiences 
(126-7). 

To  shut  out  the  oil  fields  and  Independent  refineries  of  Colorado  and 
Wyoming,  the  Combine  resorts  to  terrific  discrimination  in  rates.  The  Chicago 
and  Northwestern  Road  would  bring  a  carload  of  cattle  from  Wyoming  to 
Chicago  for  $105,  but  for  a  car  of  75  barrels  of  oil  the  freight  was  $348. 
The  rates  from  the  Western  fields  to  San  Francisco  were  also  put  vorv 
high,  and  the  Combine  built  great  storehouses  on  the  Pacific  Coast,  which 
it  fills  from  the  Eastern  fields,  the  freight  rates  from  the  East  being 
suddenly  lowered  when  it  wishes  to  refill  the  said  storehouses,  and  put 
back  again  as  soon  as  they  are  full  (Llovd.  480-1.)  The  people  of  California 
are  coDipelled  to  buy  Eastern  oil  for  the  profit  of  the  Trust  instead  of 
buying  Colorado  oil,  because  the  freight  on  the  latter  is  prohibitive  (427). 
o*  The  (Jomblne  sells  oil  below  the  quality  required  bv  law.  and  bribes 
State  oil  Inspectors  to  loan  their  stencils  to  the  Trust  to  do  Its  own  branding. 
An  Inspector  in  Iowa  exposed  the  swindle  in  written  charges  to  the  Gov- 
ernor, which  the  Governor  refused  to  Investigate  or  allow  to  be  seen,  and 


PUBLIC   OWNEESHIP   OF  PUBLIC   UTILITIES.  89 

dismissed  the  Inspector.  The  latter  said  in  his  complaint  that  the  repre- 
sentative of  the  Oil  Combine  said  to  him  in  substance:  "You  are  the  only 
fool  among  the  inspectors.  We  have  the  stencils  of  the  inspectors  at  every 
other  point  where  we  want  them."  Many  conflagrations  in  cities  can  be 
traced  to  low-grade  kerosene.  (See  the  whole  story  of  this  defiance  of  law 
and  public  safety;  Lloyd,  411-19.) 

The  Trust  has  systematically  done  Its  utmost  to  ruin  C.  B.  Matthews, 
of  Buflfalo  (245,  et  seq),  and  Geo.  Rice  (199  et  seq..  200,  206,  224,  226,  233), 
and  all  others  who  have  made  a  stand  against  it.  The  persistent,  systematic, 
all-pervading,  ruinous  persecutions  of  Geo.  Rice  by  the  Oil  Trust  and  its 
railroad  allies  form  one  of  the  most  dramatic  chapters  in  the  history  of 
industry.  (Read  Lloyd,  Chap.  XV,  et  seq.,  and  write  to  Geo.  Rice,  Marietta, 
O.,  for  the  expanded  and  continued  story.  See  also  Equity  Series  4,  to 
appear  soon.)  The  first  railroad  contract  to  ruin  Rice  doubled  his  freight 
to  35  cents  a  barrel  from  the  oil  field  to  his  refinery,  at  the  same  time 
that  the  Combine  paid  10  cents  a  barrel  and  received  25  cents  of  each 
35  paid  by  Rice.  The  contract  carae  into  court  (31  Fed.  Rep.,  689)  and 
was  denounced  by  the  court  as  "gross,"  "illegal,"  "inexcusable."  The 
Trust  got  the  contract  by  threatening  to  build  a  pipe  line  and  withdraw 
Its  valuable  business  from  the  railroad.  "Most  impudent  and  outrageous," 
said  the  Select  Committee  of  the  U.  S.  on  Interstate  Commerce  (Rep.  49th 
Cong.,  1st  Sess.  p.  199).  Indeed,  the  courts  have  uniformly  denounced 
the  relations  of  the  Trust  to  the  railroads  in  language  of  stinging  severity 
(Lloyd,  143.  206-8). 

Stealing  property,  or  compelling  sale  of  it  far  below  value,  is  a  familiar 
method  of  getting  money  to  give  to  churches  and  colleges  (Lloyd,  52;  73. 
et  seq,  the  Widow's  Case,  forced  to  sell  for  $60,000  property  worth  over 
|200,()00,  and  perhaps  $400,000,  pp.  78-9).  Inventors  are  swindled  and  ruined 
if  their  processes  threaten  to  interfere  with  the  prosperity  of  the  Trust. 
or  lessen  the  value  of  its  properties  (191-3).  Taxes  are  dodged  (166»,  cheating 
Pa.  out  of  millions  of  dollars  (168).  Suit  brought  for  taxes,  but  Trust 
buys  oil  the  Attorney-General  (176).  Indictment  for  bribery  and  corrupt 
solicitation  of  a  public  officer  (179i,  but  ditched  by  the  succeeding  Attorney- 
General,  tho  the  fact  was  publicly  known  by  the  confession  of  one  of  the 
principals  (180). 

The  Trust  got  the  railroads  to  bill  its  tank  cars  at  20,000  lbs.,  tho 
they  actually  weighed  from  25,000  to  44,000  lbs.,  and  when  an  Investigation 
of  the  matter  was  ordered,  the  numbers  of  the  tank  cars  were  painted 
out  one  night  and  the  billing  could  not  be  tested— a  pot  of  paint  and  a 
paint  brush  crippled  the  investigation  and  shielded  the  Trust  and  its  allies 
(229,  230.  235). 

The  chairman  of  one  of  the  Congressional  Investigations  said  to  the 
President  of  the  Combine:  "During  your  whole  examination  there  has  not 
been  a  direct  answer  given  to  a  question,  and  I  wish  to  say  to  you  that 
such  equivocation  is  unworthy  of  you."  (50.)  Concealment  is  an  essential 
part  of  the  Trust's  arrangements.  It  lives  in  the  dark,  and  can  live  nowhere 
else.  Even  perjury  is  a  common  affair  with  its  oflicers  (59,  61,  87,  89,  95-6, 
231,  234,  235,  243),  and  it  does  not  hesitate  to  mutilate  evidence  and  steal 
public  archives,  records  of  courts,  testimony  taken  by  Congressional  Com- 
mittees, or  anything  else  that  it  thinks  will  be  more  convenient  in  its  own 
possession  (60,  83,  373),  unless  it  is  something  that  can  be  bought,  and 
then  it  appears  to  prefer  "purchase"  (with  money  captured  from  others 
by  the  methods  outlined  above).  It  even  purchast  a  U.  S.  Senatorship  in 
Ohio  for  its  vassal,  Henry  B.  Payne.  A  member  of  the  Ohio  Legislature 
confest  that  he  had  received  $5,(X)0  to  vote  for  Payne.  The  editor  and 
proprietor  of  the  principal  Democratic  journal  in  Ohio  had  stated,  as  was 
sworn  to,  that  he  had  spent  $100,000  to  elect  Payne;  the  Representatives 
and  Senators  had  to  be  bought  and  it  took  a  good  deal  of  money  to  satisfy 
them:  and  he  complained  that  the  Oil  Trust  had  not  dealt  squarely  with 
him  in  the  matter.  Among  the  chief  managers  of  Payne's  campaign  were 
four  <.f  the  principal  members  in  Ohio  of  the  Oil  Trust.  One  of  them, 
who  was  given  financial  management  of  the  Payne  campaign  at  Columbus, 
carried  with  him  |(55,000  to  use  in  the  election,  as  he  told  an  intimate 
friend,  etc.,  etc.  After  the  Ohio  Legislature  had  examined  sixty-four  wit- 
nesses, the  House  and  Senate  each  resolved  that  Payne's  election  had  been 
brought  about  by  the  corrupt  use  of  money.  An  investigation  by  the 
U.  S.  Senate  was  urgently  requested  by  the  Governor  and  both  branches 
of  the  Legislature  of  Ohio  officially,  and  unoflicially  by  the  press,  the  public 
appeals  of  leading  men  and  the  petitions  of  citizens  regardless  of  party 
(373-4.  377,  378.  379.  382.   383-7). 

"Technicalities"  defeated  the  demand  for  an  investigation,  despite  the 
earnest  appeals  of  Senator  Hoar  and  others.  Payne  did  not  want  to  be 
examined.  He  had  not  a  dollar's  interest  in  the  Trust,  he  said,  and  pleaded 
that  Its  officials  were  good  men  because  they  gave  a  great  deal  of  (other 
people's)  money  to  charitable  purposes.  But  the  charge  he  would  never 
allow  to  be  investigated  was  that  the  Trust  had  a  great  many  dollars 
Interest  in  him.  And,  as  for  the  charity.  It  is  well-known  that,  as  Lloyd 
has  so  well  said,  "The  Trust  is  evangelical  -at  one  end  and  explosive  at 
the  other."     (358.) 

Such  are  a  few  of  the  atrocious  acts  of  the  oil  monopoly:  not  a  complete 
list  of  oil  atrocities  by  any  means,   nor  even  a  complete  list  of  those  that 


90  THE  CITY  FOR  THE  PEOPLE. 

GAMBLING. 

1 0.  Speculation  and  Gambling  in  stocks  is  an  evil  largely 
due  to  the  great  private  monopolies.  Stickney  says  that  pri- 
vate railways  and  stock  exchanges  "constitute  the  most  per- 
fect machinery  for  the  purpose  of  legalized  rohhery  that  the 
human  intellect  is  capable  of  devising.^'  ^  The  italics  are  his. 
If  you  will  go  to  the  stock  exchange  in  any  great  city,  or  look 
thru  the  Red  Manual,  or  read  the  reports  in  any  big  daily,  you 
will  find  that  gas  and  electric  stocks,  traction  companies  and  a 
few  great  trusts,  together  with  the  railroads,  make  up  the  lists. 
The  evils  of  a  system  that  encourages  men  to  seek  wealth  by 
the  rise  and  fall  of  stocks  instead  of  by  honest  industry  are  too 
clear  to  need  comment.  We  may  note,  however,  an  indication 
as  to  the  influence  that  controls  our  law  making  and  our  teach- 
ing when  we  see  gambling  with  dice  and  cards  prohibited,  but 
gambling  with  stocks  permitted  and  protected  by  law;  grab- 
bags  and  raffles  condemned  in  Sunday  schools  and  churches, 
but  the  stock  broker  and  manipulator  in  the  front  pew — poor 
folks'  gambling  very  immoral,  but  the  gambling  of  the  rich 
folks  with  the  loaded  stocks  of  the  big  monopolies — hush! 

UNJUST  INDIVIDUAL  AGGRANDIZEMENT. 

11.  Congestion  of  Wealth  and  Power  is  practically  synon- 
ymous with  private  monopoly.  Private  monopoly  involves 
congestion  of  power,  and  is  almost  sure  to  produce  congestion 
of  wealth.  Preceding  sections  have  shown  this,  and  all  that 
we  need  to  do  here  is  to  emphasize  the  extent  of  the  evil. 

According  to  Dr.  Spahr's  tables,^  one-half  of  the  families 
111  the  United  States  own  practically  nothing — have  no  part  in 
the  productive  capital  of  the  country,  and  no  property  of  any 
kind  except  their  clothes  and  a  little  furniture;  seven-eighths 
of  the  families  hold  but  one-eighth  of  the  wealth,  and  one  per 
ctnit.  own  more  than  the  other  ninety-nine  per  cent. 


hiue  been  discovered,  but  a  few  indications  of  what  mav  be  expected  If 
this  combination  and  its  allies  get  control  of  our  gas-works,  electric  light 
plants,  street  railways,  etc.  (See  end  of  sections  1,  2,  3,  4  and  8.)  These, 
''.II  .^  above  paragraphs,  show  that  the  oil  combination  exhibits  every 
evil  incident  to  private  monopoly,  and  most  of  them  in  an  aggravated  form. 

'  The  Railway  Problem,  p.  202. 

'  "Distribution  of  M'ealth,"  by  Dr.  Charles  P..  Spahr. 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  91 

xi  Statement  1  have  found  exceedingly  effective  as  a  sum- 
mary o4  the  results  of  the  United  States  census  and  other  in- 
vestigations, including  thoee  of  Dr.  Spahr  and  the  Massachus- 
etts Bureau  of  Labor,  is  as  follows: 

Half  the  people  own  practically  nothing. 

%  of  the  people  own  ■%  of  the  wealth. 

1%  of  the  people  own  more  than  50%  of  the  wealth,  or  1 
family  in  each  hundred  owns  more  than  the  other  99  families  put 
together,  and  could  buy  out  the  99  and  have  something  left. 

1-200  of  1%  own  over  20%  of  the  wealth,  or  more  than  4,000 
times  their  share,  on  the  principles  of  partnership  and  brother- 
love. 

The  following  diagrams  will  present  the  facts  more  clearly 

to  the  eye,  which  for  the  majority  of  us  is  the  most  important 

avenue  to  the  brain  and  conscience : 

A. B. c. u 

People.     aH^B  I  I  I  I  I  I  I  I  I  I  I  I  I  I  I  I 

Weahh, 


X.  Y.  Z. 

A.  B.  =  j^  of  t  e  families,  owning  f  of  the  wealth  (X.  Y.). 

B.  I).  =  I  of  the  families,  owning  ^  of  the  wealth  (Y.  Z.). 

P.  L. 0. 

People,     e J 


Wealth,    ■■■■■■■■^■^■■■■■i I 

S.  "T. 

P.  L.  =  Ife  of  the  families,  owning  more  than  half  the  wealth  (S.  T.). 

L.  ()  =  99  fc  of  the  families,  owning  leas  than  the  1  fc  own. 

2L 

People,     I  1 

Wealth,    WBt^KKKM  i 

T.  R. 

^f.  =  the  little  group  of  4000  millionaires,  or  about  1-200  of  i  %  of  the 

people,  owning  20  fo  of  the  wealth   (T.  R.),  chiefly  the  re.sult  of  muni){)oly 

profits,  or  taxHtinn  without  representation,  and  fo-  private  purposes. 

Professor  John  R.  Commons  ^  has  analyzed  the  Tribune 
Millionaire  List  with  the  following  results: 

9«1  or  24.6%  made  iheir  furtunes  mainly  in  land  values. 

3>!6  or    9.7  "  "  "  other  natural  monopolies. 

124  or    3.1  "  "  "  artificial  monopolies. 

1647  or  4 '..5  "  "  ''  some  bnsiness  known  to  be 

aided  by  monopoly,  natu- 
ral or  artificial. 

854  or  21.4  "  "  "  business   not   known   to   be 

aided  by  monopoly. 


»  "Distribution  of  Wealth,'    pp.  ^52  a 


92  THE  CITY  FOR  THE  PEOPLE. 

That  is,  upon  the  face  of  the  returns  industrial  monopoly  is 
clearly  traceable  as  a  cause  in  the  building  of  about  four-fifths 
of  the  fortunes  of  the  millionaires  and  polymillionaires  named 
in  the  Tribune  List.  If  we  knew  all  about  the  854  cases  in 
the  last  entry,  it  is  probable  that  we  should  find  some  rebate, 
or  government  influence,  or  favoritism  of  some  monopolistic 
magnate — some  special  privilege  aside  from  individual  char- 
acter and  intellect,  entering  as  a  vital  factor  into  nearly  every 
case.  Brain  and  soul  may  bring  a  competence  in  a  fair  field, 
but  it  is  a  rare  thing  for  them  to  bring  great  wealth  without 
the  aid  of  some  outside  advantage  tending  to  shut  out  compe- 
tition; and  when  they  do  it  will  usually  be  found,  as  in  the 
case  of  fortunes  made  in  the  legal  profession,  that  the  result 
could  not  have  been  achieved  but  for  the  enormous  salaries 
and  feee  which  the  monopolists  paid,  and  were  able  to  pay  be- 
cause of  their  monopoly  profits,  and  were  willing  to  pay  be- 
cause their  own  great  gains  and  salaries  had  put  them  in  the 
habit  of  giving  large  prices  to  men  close  to  them  and  high  in 
their  affections.  I  am  not  sure  of  a  case  where  brain  and  heart 
have  won  a  million  without  the  aid  of  some  natural  monopoly 
or  governmental  influence,  or  the  weight  of  accumulated 
wealth,  or  the  favor  of  one  or  more  undoubted  monopolists. 
If  the  reader  is  sure  of  such  a  case,  I  shall  be  grateful  if  he  will 
write  to  me  of  it,  giving  such  detailed  proofs  as  he  can. 

The  amount  of  monopoly  tax  upon  our  people  cannot  be  ac- 
curately ascertained,  but  it  sums  up  to  an  enormous  total,^  and 
the  worst  of  the  system  is  that  its  effects  are  accumulating  with 
vast  and  ever  accelerating  rapidity,  and  that  it  is  separating 
our  people  into  inharmonious  classes,  creating  castes  in  our 
cities,  and  bleeding  whole  groups  of  states  to  enlarge  the 
profits  of  a  few  great  monopolies.  The  farmers  and  mechanics, 
merchants,  doctors,  builders,  the  whole  body  of  workers  pay 
tribute  to  the  monopolists;  and  the  V^^est  and  South  and  Cen- 
tre pay  tribute  to  the  East,  because  the  monopolists  mostly  re- 
side in  that  quarter.  Private  monopoly  and  its  profits  are 
dangerous  to  peace  and  free  institutions. 

"Monopoly  in  any  kind  of  business  in  this  country  is  ad- 


•See  Prof.  Commons'  Distribution  of  Wealth,  pp.  257  8,  whore  a  few  facU 
are  given  relating  to  land,  transportation,  gas,  etc. 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  93 

verse  to  our  form  of  government,"  said  Chief  Justice  Sher- 
wood. "Its  tendency  is  destructive  of  free  institutions  and 
repugnant  to  the  instincts  of  a  free  people,  and  contrary  to 
the  whole  scope  and  spirit  of  the  Federal  Constitution.  In- 
deed, it  is  doubtful  if  free  government  can  long  exist  in  a 
country  where  such  enormous  amounts  of  money  are  allowed 
to  be  accumulated  in  the  vaults  of  corporations  t'o  be  used  at 
discretion  in  controlling  the  property  and  business  of  the  coun- 
try against  the  interest  of  the  people  for  the  personal  gain  of 
a  few  individuals."  * 

"I  want  to  know,"  said  Senator  Hoar,  in  1888,  on  the  floor 
of  the  United  States  Senate,  "I  want  to  know  the  facts  about 
these  five  or  six  great  trusts,  which  are  sufficient  in  their  power 
to  overthrow  any  government  in  Europe,  if  they  existed  in 
those  nations,  that  should  set  itself  against  them,"  naming 
transportation,  coal,  sugar,  oil,  etc. 

"The  freest  government,"  said  Daniel  AVebster,  "cannot 
long  endure  where  the  tendency  of  the  law  is  to  create  a  rapid 
accumulation  of  property  in  the  hands  of  the  few." 

INERTIA  OR  NON-PROGRES8IVENESS. 

12.  Non-progressiveness  on  certain  lines  is  natural  to  the 
monopolist.  He  wants  to  get  all  he  can  out  of  his  capital,  and 
is  more  or  less  protected  from  the  compulsory  progress  imposed 
upon  the  owner  of  a  competitive  business.  So  we  find  gas 
works  putting  out  the  old-fashioned  product  instead  of  giving 
the  people  the  benefit  of  the  cheaper  and  better  gas  we  can 
make  to-day.  Street  railways  keep  on  using  the  old  rail  that 
makes  tlie  street  rough  and  dangerous  to  delicate  buggy 
wheels,  instead  of  putting  down  the  grooved  rail,  level  with 
the  surface  of  the  road,  so  that  the  street  may  be  smooth  and 
safe  from  curb  to  curb.  We  find  them  also  neglecting  to  warm 
the  cars,  or  fit  them  with  fenders  or  vestibules,  till  forced  to 
do  so  by  law.  Even  severe  mandatory  legislation  sometimes 
fails  to  move  the  monopolies.  It  has  failed  to  make  the  rail- 
ways remove  the  deadly  stove  from  their  cars,  or  adopt  safety 
couplers  and   crossings.     Even  Chauncey  M.   Depew  is  re- 


77  Mich..  632,  657-S. 


94  THE  CITY  FOB  THE  PEOPLE. 

ported  to  have  been  arrested  for  violation  of  the  law  in  respect 
to  the  use  of  stoves  in  the  trains  of  the  railway  of  which  he 
was  president,  and  charged  with  manslaughter,  under  the  pro- 
visions of  the  act,  for  permitting  the  continued  use  of  stoves, 
which  in  an  accident  burned  up  a  few  travellea^.  Professor 
Bemis  says:  "The  natural  tendency  of  a  monopoly  so  strongly 
protected  as  are  the  lighting  mouopoli^of  Massachusetts  would 
be  toward  lack  of  progress! veness."  And,  as  the  Professor 
remarks  in  the  next  sentence,  the  lighting  business  in  other 
states  is,  in  fact,  about  as  complete  a  monopoly  as  in  Massa- 
chusetts, and,  therefore,  equally  non-progressive. 

None  of  the  private  monopolies,  so  far  as  I  know,  have  the 
development  of  manhood  and  the  progress  of  civilization  as 
their  aim ;  none  of  them  seek  to  extend  their  services  to  people 
in  rural  districts,  as  the  Post  Office  does,  and  the  English  postal 
telegraph,  and  the  public  water  and  electric  systems,  and  the 
school  and  road  departments,  do  in  all  our  states;  and  some 
of  the  private  monopolies  not  only  neglect  to  move,  but  even 
deliberately  suppress  important  inventions  which  would  com- 
pel movement  if  not  supprest.* 

MASTERSHIP  AND  OPPRESSION  OF  LABOR. 

13.  Ill  treatment  of  em.ployes  is  emphatic  in  the  case  of 
some  monopolies,  but  is  by  no  means  so  universal  as  most  of 
the  evils  previously  discussed.  There  are  two  reasons  for  this : 
(1)  Some  monopolists  from  business  policy,  humanity,  good 
feeling,  pride,  or  love  of  approbation,  pay  fair  wages  and  ac- 
cord their  employees  reasonable  treatment.  (2)  In  some  mo- 
nopolistic industries  the  workers,  or  large  classes  of  them,  at 
least,  are  able  to  protect  themselves.  The  history  of  the  great 
strikes  on  the  the  street  railways  of  Brooklyn,  Philadelphia, 
Boston,  Detroit,  Cleveland,  Wheeling,  etc.,  and  the  record  of 
che  telegraph  and  telephone  monopolies  show  what  private  mo- 


looii  Postmaster  General  Wanamaker's  Argument  for  a  Postal  Telegraph. 
IJfiH),  pp.  11  143-5,  enumerates  16  inventions  suppressed  in  one  wav  or 
another  by  the  Western  Union— some  of  them  of  vital  importance  for  cheap- 
ening, quickening  and  Improving  the  transmission  of  intelligence;  but  their 
liitroduction  would  relegate  part  of  the  Western  Union  plant  to  the  junk 
pile,  so  we  must  wait  till  the  millionaires  are  ready  for  the  curtain  to  go  up. 
(See  Arena,  Vol.  16,  p.  362,  and  Vol  17,  pp.  200,  et  seq.    ) 


PUBLIC   OWNEKSmP   OF   PUBLIC    UTILITIES.  95 

nopoly  may  mean  to  employees  where  neither  of  the  above- 
named  safeguards  is  operative. 

The  strike  of  the  employees  of  the  "Big  Consolidated"  street 
railways  of  Cleveland  has  been  attended  with  riots  which  the 
police  appear  to  have  been  unable  to  quell.  Two  cars  carrying 
passengers  have  been  blown  up  with  dynamite.  Troops  have 
been  sent  to  restore  order,  and  the  cars  are  running  again.  The 
strikers  and  those  who  sympathize  with  them  have  instituted 
a  "boycott"  against  all  who  use  the  cars,  forbidding  all  deal- 
ings vrith  such  persons,  and  endeavoring  to  cut  them  off  from 
all  supplies,  even  from  medicines  and  the  attendance  of  physi- 
cians, and  local  business  has  suffered  greatly  in  consequence.^ 

In  Brooklyn  also  street  railway  strikes  have  proved  prolific 
sources  of  violence,  and  have  caused  great  loss  to  the  compa- 
nies, the  strikers  and  the  public.  In  1895  it  took  all  the  police 
of  the  city  and  7,000  soldiers  to  preserve  order.  The  compa- 
nies refused  to  grant  the  reasonable  wages  and  hours  demanded 
by  the  men,  and  as  they  could  not  get  men  to  accept  the  terms 
they  were  willing  to  give,  they  did  not  run  their  cars  even 
after  order  was  restored.  Wherefore  Justice  Wm.  J.  Gaynor, 
of  the  Supreme  Court,  in  the  matter  of  Loader  v.  Brooklyn 


*  The  text  expresses  facts  visible  to  an  obserAer  at  a  distance  thru  the 
medium  of  the  best  papers.  The  following  statement  of  facts  comes  from 
the  Rev.  W.  D.  P.  Bliss,  President  of  the  National  Social  Reform  Union. 
His  sympathies  are  strongly  with  the  men,  but  he  is  a  man  of  the  very 
highest  character,  and  he  got  the  facts  on  the  spot,  and  when  he  relied  on 
testimony  he  did  not  take  It  from  the  worklngmen,  but  from  "unprejudiced 
observers." 

The  cause  of  the  trouble  was  consolidation  and  strenuous  effort  to  make 
dividends  on  overcapitalization.  The  companies  worked  the  men  longer  hours 
and  made  them  drive  the  cars  faster  and  at  illegal  speed.  Some  of  the 
"trippers,"  or  men  employed  for  special  runs,  had  to  bo  nt  the  car  shed« 
waiting  for  runs  from  5  A.  M.  to  1.30  A.  M.  the  next  night,  20%  hours  out 
of  the  24.  Many  accidents  occurred  and  several  children  were  killed.  Tho 
men  protested  against  the  long  hours  and  the  fast  runs.  They  did  not 
enjoy  killing  children  nor  spending  their  whole  lives  in  barns,  or  on  the 
road.  The  only  heed  the  companies  gave  was  to  employ  a  new  superin- 
tendent, noted  for  harsh  dealings  with  his  men.  Men  who  dared  to  complain 
were  discharged  on  the  slightest  pretext.  Finally  the  men  struck,  not  for 
higher  wages,  but  for  humane  treatment.  Knowing  that  without  a  union  they 
were  helpless,  they  demanded  recognition  of  their  union.  The  company  re- 
fused. The  State  Board  of  Arbitration  tried  to  mediate  and  failed.  A  com- 
mittee of  the  C3ity  Council  succeeded  in  patching  up  an  agreement  and  the 
men  went  back  to  work.  The  company  failed  to  keep  Its  contract,  those 
who  had  struck  being  discharged  as  rapidly  as  possible.  The  men  struck 
again.  Every  employee  went  out.  There  was  no  violence.  The  company 
got  new  men,  but  could  not  get  patronage.  The  sympathy  of  the  city  was 
with  the  men.  Then  the  companies  blew  up  a  barn  with  dynamite,  pre- 
viously notifying  the  "scabs,"  who  slept  in  it,  not  to  do  so  that  night, 
and  one  of  their  armed  "scab"  motormen  shot  a  boy  who  yelled  "scabl"' 
and  the  papers  were  filled  with  lurid  columns  about  "the  riotous  strikers" 
and  their  terrible  use  of  dynamite.  As  a  result  of  these  atrocities  and  the 
provocation  of  the  state  troops  some  violence  has  been  done  by  the  strikers. 
The  city  still  shows  its  faith  In  these  facts  by  largely  sympathizing  with  the 
strikers  and  refusing  to  ride  In  the  boycotted  cars. 


96  THE  CITV  FOR  THE  PEOPLE. 

Heights  Co.,  &c.,  issued  writs  of  mandamus  to  compel  the 
roads  to  run  their  cars.^ 

In  a  letter  to  the  Board  of  Mediation,  Feb.  4,  1895,  Judge 
Gaynor  said  that  the  real  cause  of  the  trouble  was  deeper  than 
anything  in  the  statement  of  grievances  before  them.  "It 
lies  in  a  state  of  disquiet  and  moral  protest  not  confined  to  the 
employees  of  the  companies,  but  pervading  this  intelligent 
community,  and  which  was  caused  by  the  recent  speculative 
uses  and  manipulations  to  which  these  companies  have  been 
subjected."  It  was  overcapitalization  and  the  strain  for  divi- 
dends that  caused  the  heartless  disregard  for  the  welfare  of 
employees  and  the  public  which  brought  on  the  strike.^ 


1  The  judge  said  that  a  body  of  workers  acting  in  concert  had  a  right 
to  fix  a  price  for  their  iabor,  and  refuse  to  worli  at  a  iess  price,  nud  that 
If  the  roads  could  not  get  men  to  worli  at  its  terms,  they  must  offer  terms 
on  which  they  could  get  men.  They  could  supercede  their  employees  gradu- 
ally, day  by  day,  by  men  who  would  work  on  their  terms  if  they  were  able 
to  find  such  men,  or  they  could  supercede  them  all  at  once  if  they  had  it 
sufficient  number  of  new  employees  for  that  purpose;  but  they  had  no  right 
to  stop  their  cars  during  such  a  controversy,  while  they  were  gradually  get- 
ting other  men.  It  was  their  duty  to  the  public  to  run  their  cars  with  a  full 
complement  of  men.  Any  citizen  could  apply  for  a  writ  to  compel  the  roads 
to  do  their  duty. 

As  a  question  of  fact  was  raised  by  the  companies,  the  writ  had  to  be 
In  the  alternative.  And  as  the  statute  allowed  20  days  time  in  which  to 
answer  such  a  writ,  it  really  amounted  to  little  in  this  case.  An  extreme 
absurdity  in  the  law  to  require  that  carriers  shall  not  stop  their  cars  o 
single  day,  and  yet  allow  20  days  time  on  the  writ  of  compulsion.  The 
time  should  be  shortened,  either  by  definite  provision  or  by  putting  the 
matter  in  the  discretion  of  the  judge.  Or  the  companies  should  be  required  to 
obey  the  writ  until  they  show  cause  to  the  contrary,  and  then  let  them  fix 
the  date  of  hearing  as  soon  as  they  like,  subject,  of  course,  to  recoupment 
for  the  Intervening  time  if  they  succeed  in  showing  that  the  order  should 
not  have  issued. 

=  The  judge  remarkt  that  a  few  years  before  the  Brooklyn  City  Road 
had  three  millions  of  stock  and  three  millions  of  bonds  (or  $30,000  total 
capital  per  mile,  which  is  high  for  horse  lines).  The  bonds  were  increased  to 
six  millions  and  the  stock  to  twelve,  in  order  to  change  from  horse  to  electric 
traction  overhead  (an  Increase  of  $60,000  a  mile  of  track,  or  about  double 
the  probable  cost  of  the  change).  "But,"  as  the  judge  said,  "tlie  case 
does  not  stop  here.  The  next  two  steps  are  what  aroused  the  public  consc-ience. 
Those  in  control  took  this  great  company,  and  in  1803  leased  it  for  !»!>9  years 
to  a  little  street  railway  company  called  the  Brooklyn  Heights  Railroad 
Company  which  they  had  got  control  of.  This  little  companv  had  a 
paper  capital  of  $200,000,  and  a  mile  or  less  of  track.  One  might  think 
that  instead  of  the  great  Brooklyn  City  Railroad  Company  system 
(with  its  200  miles  of  track)  being  turned  over  to  this  miuature  com- 
pany, the  reverse  would  have  happened;  but  it  did  not,  for  that  would  not 
have  served  the  purpose  in  view.  By  the  terms  of  the  lease  this  little 
company  agreed  to  pay  the  interest  on  the  $6,000,000  in  bonds  and  a  yearly 
dividend  of  10  per  cent,  on  the  $12,000,000  in  paper  stock  of  the  Brooklvn 
City  Company.  All  the  overplus  it  was  to  keep.  That  was  to  go  to  Its 
stockholders.  Thus  the  little  company  was  made  the  absorber  of  all  the 
earnings  of  the  Brooklyn  City  Company  over  and  above  what  would  have 
to  be  taken  to  pay,  as  above  stated,  the  interest  on  the  bonds  and  a  10  per 
cent,  annual  dividend  on  the  stock  of  the  latter  company. 

"But  this  did  not  satisfy  those  who  had  gone  that  far.  Thev  must  go 
further.  To  evade  the  payment  of  the  incorporation  tax  of  this  state  they 
went  down  to  the  state  of  West  Virginia,  and  there,  in  March,  1893,  formed 
a  corporation,  called  the  Long  Island  Traction  Companv,  with  the  enor- 
mous paper  capital  of  thirty  million  dollars  ($30,000,000).  "l  need  hardly  say 
T  *i.i°'^  ""^^  paper  company  had  not  a  day's  work  or  a  dollar  back  of  it. 
It  °'^  °ot  0^°  a  steel  rail,  a  stick  of  wood  or  anything  in  the  world.  AH 
that  there  was  of  it  was  on  paper.  It  was  not  a  railroad  company,  but  a 
business  company,  its  very  name  being  a  falsehood.     It  was  brought  up  to 


I  IMJLIC    OWNEIvSIHP    OF    PUBLIC    UTILITIES.  97 

In  the  Philadelphia  strike  of  1895  the  men  demanded  re- 
cognition of  their  right  of  organization,  a  ten-hour  day,  with 
wages  not  less  than  $2,  and  vestibules  to  protect  the  motor- 
men  from  the  rigors  of  winter  and  the  inclemencies  of  the 
weatlier.  Public  sentiment  was  oveinvlieluiinoly  ^vith  the  men, 
and  after  a  time  the  traction  authorities  patched  up  a  truce  on 
an  agreement  to  consider  grievances,  and  not  to  discharge  any 
one  for  membership  in  the  union.  The  men  went  to  work 
again,  and  the  company  began  to  discharge  the  active  mem- 
bers of  the  union,  one  by  one,  on  the  flimsiest  pretexts — little 
mistakes  formerly  unnoticed  and  almost  impossible  to  avoid, 
trivial  accusations  of  being  two  or  three  minutes  late,  some 
small  breach  of  the  rigorous  and  complex  rules  that  street  rail- 
way companies  know  so  well  how  to  make,  and  which  even  the 
best  men  find  it  practically  impossible  to  conform  to  perfectly. 
Some  of  the  men  dischai-ged  had  served  the  roads  for  fifteen 
to  twenty  years,  and  had  records  entirely  clear  of  any  real 
fault,  unless  membership  in  the  union  be  so  considered.  The 
company  paid  no  more  heed  to  its  a^eemeut  to  consider 
grievances  than  to  the  rest  of  the  contract.    So,  in  one  of  the 


Brooklyn,  and  those  who  created  It,  and  also  owned  and  controlled  the  little 
Brooklyn  Heights  Company,  turned  over  to  It  the  certificates  of  the  stock 
($200,000)  of  the  latter  company.  And  thus,  connected  by  these  two  links 
with  the  Brooklyn  City  Company,  this  West  Virginia  company,  with  Its 
sham  paper  capital  of  $30,000,000,  became  the  absorber,  thru  the  little  Brook- 
lyn Heights  Company,  of  all  the  earnings  of  the  Brooklyn  City  Company 
over  the  interest  on  bonds  and  the  10  per  cent,  annual  dividend  on  stock 
already  specified. 

"The  effect  of  these  transactions  was  pernicious  to  the  community. 
They  were  discussed  and  condemned  wherever  two  or  three  met.  Our 
people  lookt  on  and  became  justly  Irritated  and  uneasy.  They  knew  that 
the  thing  remaining  to  be  done  by  those  in  control  of  these  enterprises  was 
to  thus  absorb  a  surplus  out  of  the  Brooklyn  City  Company  large  enuf  to 
pay  a  dividend  on  this  sham  $30,000,000  of  paper  stock  of  the  West  Vir- 
ginia company,  thereby  to  make  that  stock  worth  par,  and  enrich  Its  holders 
out  of  the  industry  of  others.  To  do  this  the  employees  of  the  company 
knew,  and  every  one  knew,  that  the  expenses  of  the  Brooklyn  City  Company 
would  be  cut  down  to  the  lowest  point.  The  result  of  such  stock  infiation 
is  always  the  same,  and  the  attempt  by  this  means  and  by  that  to  get 
money  to  pay  a  dividend  upon  it  always  follows,  and  thus  it  is  always  the 
cause  of  heartlessness  and  oppression.  In  giving  this  history  concerning  the 
Brooklyn  City  Company  I  have  given  you  the  history  of  the  Atlantir  Avenue 
Company,  which  is  subject  to  the  same  process  of  Inflation  and  absorption 
by   another  so-called   traction   company." 

Since  the  judge  wrote,  the  leading  Brooklyn  companies  have  been  ab- 
sorbed by  the  Brooklvn  Rapid  Transit  Company,  a  New  York  corporation  of 
181)6.  Excluding  the"  1.2  miles  of  cable  and  the  2.3  miles  of  "L"  road  and 
tl:(ir  capital,  we  find  that  October  1,  1898,  the  capitalization  of  261  miles  ot 
overhead  trolley,  with  less  than  9  cars  per  mile,  was  $53,000,000.  or  $200,000 
per  mile  of  track.  The  bonds  alone  amount  to  more  than  $80,000  a  mile, 
or  at  least  double  what  it  would  cost  to  duplicate  the  system  complete,  so 
that  half  the  bonds  and  all  the  stock  must  be  considered  simply  as  paper, 
without  a  base.  About  $10,000,000  of  new  stock  will  soon  be  Issued  to 
enable  the  company  to  get  control  of  the  132  miles  of  the  Nassau  trolley, 
already  capitalized  at  $200,000  a  mile,  and  the  absorption  of  the  Coney 
Island  line  is  also  contemplated.  That  will  complete  the  consolidation  ot 
the  Brooklyn  surface  roads  under  the  rajiid  Transit  Coi'^.pauy. 

7 


98  THE  CITY  FOR  THE  PEOPLE. 

most  promising  strikes  on  record,  with  the  men  well  united 
and  an  outraged  public  sentiment  overwhelmingly  with  them, 
the  corporation  won  by  faithless  strategy,  and  the  men  were 
really  worse  off  than  ever.  Wages  and  hours  remained  as  be- 
fore,^ and  the  power  of  capricious  discharge,  and  the  failure 
to  protect  conductors  fro'm  loss  by  careless  or  fraudulent  mis- 
counting of  the  money  they  turn  in,  which  could  easily  be 
done  by  ordering  such  moneys  to  be  counted  in  the  conductor's 
presence.  The  men  have  not  secured  any  real  recognition  of 
their  right  to  continued  employment,  and  organization,  and 
impartial  arbitration,  or  even  fair  consideration  of  grievances. 
Even  the  vestibules  were  not  obtained,  and  motormen  had  to 
keep  on  whizzing  thru  the  winter  at  the  rate  of  8  to  12  miles 
an  hour  or  more ,  and  sometimes  in  the  teeth  of  a  40-mile 
zephyr  at  zero  or  lower,  with  nothing  in  front  of  them  to  break 
the  force  of  the  wind.*  Cold  and  exposure,  long  hours  and 
nervous  strain  materially  shorten  the  lives  of  motormen;  but 
men  are  cheap,  cheaper  even  than  the  horses  the  companies 
used  to  ill-treat  before  they  got  the  motormen.  Often  they 
get  fro'stcd  fingers,  ears  and  feet,  and  sometimes,  as  in  Boston, 
January  26,  '96,  numbers  of  them  find  their  faces  frozen. 
The  locomiotive  engineer,  the  steersman  of  a  tug,  the  pilot  of  an 
ocean  steamer,  are  all  protected  against  the  weather.  In  Ohio, 
Indiana,  Michigan,  Minnesota,  Wisconsin,  and  perhaps  some 
other  states,  the  law  requires  vestibules  on  street  cars,  and  they 
are  voluntarily  used  on  a  number  of  lines  in  Massachusetts, 
New  York,  New  Jersey,  Pennsylvania,  etc.  The  postal  cars 
in  Philadelphia  have  them.  There  is  no  reason  in  the  world 
but  heartless  greed  why  vestibules,  with  moveable  windows, 
should  not  be  put  on  every  trolley  and  cable'  car  in  the  north. 


'  The  nominal  day  was  12  hours,  but  the  practical  day  was  13  to  14 
hours,  with  a  brief  intermission  for  luuch,  and  the  pay  16  2-.^  cents  an  hour. 
In  New  Yori{  the  men  on  some  lines  declare  that  they  work  14,  15,  16  and 
even  17  ho-.irs  to  earn  a  two-dollar  bill.  The  Union  Traction  Company  of 
Plilladelphia  said  it  couldn't  afford  to  pay  any  better  wages.  It  had  inten- 
tionally put  it  (>,:t.  (if  its  power  to  make  reasonable  concessions  to  the  public 
or  the  men  by  a  scheme  of  leasing  the  united  roads  at  enormous  rentals, 
amounting  In  some  cases  to  more  than  60  per  cent,  on  real  investment,  and 
fooling  up  about  five  million  dollars.  It  is  the  old  scheme  of  keeping 
yoiirself  In  several  pieces  and  making  a  contract  with  each  piece,  so  that 
you  cau  Kay,  if  any  demand  is  made  upon  yon,  "I  reallv  cant  reduce  rates 
or  pay  good  wages  or  do  anything  else  (except  run  the  business  as  I  want  to). 
If  you  doubt  it,  Just  look  at  the  contract  obligations  I  am  under.  " 

•A  year  ov  two  later  vestibules  were  put  on  the  cars  on  the  longest,  sub- 
urban  lines. 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  99 

The  lesistance  of  most  of  the  companies  to  this  humane  re- 
quirement till  forced  by  law  to  adopt  it,  their  persistent  re- 
fusal to  arbitrate  or  consider  grievances,  their  arbitrary  dis- 
charges and  burdensome  regulations  and  their  efforts  to  crush 
the  unions  are  strong  indications  of  their  attitude  toward  em- 
ployee, who  are  no  more  to  them  than  so  many  cogs  in  the 
machinery  of  their  power-houses.^ 

The  strikes  that  blaze  out  now  and  then  to  show  us  the  real 
condition  of  things  are  industrial  rebellions,  little  civil  wars, 
relics  of  the  barbarous  age  in  which  men  fought  out  their  dif- 
ficulties in  the  streets  instead  of  submitting  them  to  decision 
by  the  intelligent  arbitrament  of  a  court  of  justice.  They  are 
calamities  in  general  to  the  public,  the  companies  and  the 
strikers.  Now  and  then  there  is  a  successful  strike,  as  in  De^ 
troit,  with  the  help  of  its  splendid  Mayor,  Pingree.^  But,  as  a 
rule,  these  battles  with  monopoly  fail,  and  even  their  educa- 
tional effect,  for  the  most  part,  seems  to  fade  and  die  in  a  little 
while.  Put  not  your  faith  in  strikes,  my  brother,  but  in  steady, 
peaceful  education  and  the  ballot. 

LOW  CHARACTER  PRODUCT. 

14.  Debasement  of  Human  Nature  is  a  natural  result  of 
any  arrangement  by  which  a  few  selfish  men  are  able  to 
achieve  industrial  and  political  mastery  over  others.  The  mo- 
nopolists themselves  become  arrogant,  overbearing,  undemo- 
cratic, disregardful  of  the  rights  of  others,  apt  to  look  at  men 
not  as  equals  and  brothers,  but  as  so  many  things  to  be  used 
in  their  works,  grist  to  be  ground  up  in  their  money  mills, 
oranges  to  be  squeezed  and  thrown  away.    The  workers,  on  the 


'  For  the  treatment  of  employees  by  the  Telegraph  Monopoly,  see  Arena, 
Vol.  15,  pp.  802-14. 

'  The  men  began  to  form  a  union,  got  39  members,  the  companies  began 
discharging  them,  the  men  went  out  In  a  body,  perfected  their  organization 
and  demanded  its  recognition,  with  better  wages  and  hours,  and  with  the 
help  of  Mavor  Plngree  they  won.  The  companies  in  Detroit  agreed  to  recog- 
nize the  Aiiialgamated  Association  of  Street  Railway  Employees,  and  malce 
a  yearly  agreement  with  it  covering  wages,  hours,  etc.,  and  providing  that 
all  dilBculties  should  be  submitted  to  arbitration,  the  award  to  be  binding 
on  both  parties.  (Motormnn  and  Conductor,  October,  1895.)  In  Milwaukee 
also  the  companies  deal  with  the  men  thru  their  association.  In  Boston,  too, 
the  men  have  an  organization,  which  is  recognized  by  the  company.  But  In 
New  Yorlj  the  men  do  not  dare  to  belong  to  a  labor  union,  or  at  least  they 
do  not  dare  to  have  it  known  that  they  do,  and  it  is  very  hard  to  keep  the 
fact  from  the  con^pany's  spies.  The  men,  both  on  the  elevated  and  on  the 
surface  lines,  tell  me  that  the  moment  a  man  joins  a  union  he  is  dischareed. 


100  THE  CITY  FOK  THE  PEOPLE. 

Other  hand,  too  often  take  on  the  character  of  serfs — unques- 
tioning obedience  to  constituted  control,  un protesting  submis- 
sion to  low  wages  and  ill  treatment,  slavish  deference  to  wealth 
and  power,  regardless  of  its  justness,  willingness  even  to  think 
and  vote  the  way  their  masters  dictate.  J)ivide  men,  into  con- 
trollers and  controlled  on  any  basis  but  that  of  intelligent 
selection  of  the  controllers  by  the  controlled,  for  the  service 
of  the  controlled,  and  subject  to  their  instructions,  and  you 
destroy  the  truth,  courage,  independence  and  brotherly  sym- 
pathy that  lifts  human  nature  to  its  highest  type. 

ABISTOOKACY. 

15.  Denial  of  Democracy  is  the  very  marrow  of  monopoly. 
Democracy  says  "Equal  rights  to  all;  special  privileges  to 
none."  The  monopolists  say  "Special  privileges  to  us;  the 
rest  may  have  what  they  can  get,  and  what  we  may  choose  to 
give  them."  Democracy  means  equality  of  opportunity  and 
equal  protection  of  the  laws.  Monopoly  means  inequality  of 
opportunity  and  government  by  and  for  the  few.  We  do  not 
need  to  dwell  upon  the  topic  here,  for  the  aristocratic  tenden- 
cies of  private  monopoly  and  its  dangers  to  republican  gov- 
ernment and  free  institutions  have  already  been  rendered  em- 
phatic by  the  facts  of  the  preceding  sections.  (See  especially 
8,  9  and  11.) 

TiHE  Benefits  of  Monopoly. 

The  benefits  derived  from  monopoly  thru  its  stoppage  of 
the  wastes  of  competition  within  the  field  it  covers,  are  ad- 
mitted by  all  serious  students  of  the  subject.  Competition  in 
the  supply  of  water,  gas  or  electric  light,  or  in  the  street  rail- 
way, or  telephone  service,  is  an  absurdity.  It  has  been  tried 
scores  of  times,  but  has  never  succeeded.  It  is  a  terrible  waste 
to  tear  up  the  streets  and  put  in  parallel  systems  of  gas  or 
prater  pipes,  and  then  maintain  two  pumping  or  producing 
plants  and  collecting  agencies  where  one  would  do.  With  tlie 
telephone  the  case  is  even  worse,  for  besides  the  duplication  of 
systems,  subscribers  are  forced  to  belong  to  both  svstems  ''" 


PUBLIC   OWNERSHIP   OF   PUBLIC    UTILITIES.  101 

order  to  communieat©  with  the  whole  field,  and  sometimes, 
where  the  systems  are  quite  unfriendly,  complete  service  be- 
comes impossible  to  secure.  The  vast  economy  of  union  is 
indicated  by  such  facts  as  that  the  consolidation  of  the  street 
railway  companies  of  Boston  saved  200  cars  a  day,  and  that 
the  31  manufacturers  of  matches  in  the  United  States  were 
able,  by  combining,  to  close  all  the  factories  but  13  and  still 
supply  the  market  fully.  A  carload  of  facts  to  the  same  effect 
could  be  adduced,  but  it  is  not  needful,  for  no  one  denies  that 
conflict  is  wasteful  or  that  union  and  concentration  mean 
strength  and  economy.  The  irresistible  movement^  toward 
the  abolition  of  competition  in  respect  to  gas,  water,  electric 
light,  street  railways  and  other  public  utilities,  that  has  brought 
the  companies  together  into  solid  trusts  and  mighty  combina- 
tions, is  fully  justified  on  economic  grounds.  'No  well-in- 
formed economist  advocates  competitive  enterprise  in  the 
public  utilities  of  a  municipality,  for  he  knows  that  it  means 
large  wastes  and  ultimate  failure  thru  open  or  secret  combina- 
tions of  the  competing  companies,  with  high  rates  fastened, 
upon  the  community  by  a  double  capitalization.^ 


•  W^lthln  the  last  few  years  the  gas  companies  In  Boston,  New  York  and 
Chicago  have  united.  A  single  monopoly  controls  the  gas  works  In  thirty 
cities.  Electric  light  companies  are  also  combining,  and  street  railway  sys- 
tems are  consolidating  at  a  tremendous  rate.  Substantially  all  the  roads 
In  Boston  have  been  gathered  under  one  wing,  which  also  covers  the 
elevated  franchise.  In  New  York  all  the  elevated  roads  have  come  under 
one  management — four  surface  roads  are  united  In  the  Third  avenue  sys- 
tem, and  thirty  roads,  all  the  rest  in  the  city,  are  operated  by  the  Metro- 
politan Company.  In  Chicago  the  crystallization  has  not  gone  so  far,  but 
the  chief  lines  have  clustered  into  three  great  systems.  This  was  the  situa- 
tion also  in  Philadelphia  till  1896,  but  In  that  year  the  three  systems  came 
together  in  the  Union  Traction  Co.,  and  now  the  Hestonville  line  has  been 
swept  within  the  circle,  and  all  the  twenty-five  original  roads  in  the  city 
are  in  one  solid  system,  the  lines  being  leased  to  the  Union  Traction  Co.  for 
999  years. 

'  See  Prof.  Ely's  "Problems  of  To-day,"  chapters  on  gas  and  railways. 
Also  "Municipal  Monopolies,"  p.  594,  quoting  the  testimony  at  Cleveland  of 
Captain  Wm.  Henry  White,  identified  at  different  times  with  competing  gas 
companies  in  Boston,  Chicago,  Baltimore,  Brooklyn,  etc.  The  Captain  says: 
"Among  the  blessings  that  long-suffering  communities  have  in  this  country 
Is  the  competing  company.  •  •  ♦  They  produce  a  new  plant,  put  in  all 
the  apparatus  and  parallel  the  mains  of  the  other  company,  and  they  try  for 
a  while  to  fight,  and  we  have  the  usual  gas  war.  Then  the  two  companies 
get  together  and  say:  'Well,  now,  we  have  done  the  philanthropic  act  long 
enuf,  and  we  think  the  public  had  better  pay  for  this  little  picnic  of  ours.' 
They  unite,  and  usually  double  the  capital  when  they  unite."  (That  is,  they 
double  the  total  existing  capital  of  both  companies,  making  a  capital  four- 
fold that  of  a  single  unmanipulated  plant.)  After  speaking  at  some  length 
of  the  gas  consolidations  in  Boston  and  vicinity,  and  in  Chicago,  all  on  the 
principle  just  mentioned,  the  Captain  said:  "The  competing  company  is  not 
a  panacea  for  the  ills  the  public  has  suffered.  The  opposition  company  is 
the  greatest  mistake  that  is  ever  made." 

Prof.  Ely  says:  "Competition  in  gas  has  been  tried  1000,  yes,  probably 
2000  times,  but  never  has  been  and  never  can  be  permanent."  (Problems  of 
To-day,  pp.  128,  142,  256.)  See  also  Bronson  Keeler's  article  in  The  Forum 
for  November,   1889,   and   Prof.   James'   discussion   In   Pubs,   of   Econ.   Asso., 


102  THE  CITY  FOB  THE  PEOPLE. 

The  competition  we  have  been  speaking  of  is  competition  between 
two  or  more  private  plants.  Competition  between  a  public  plant 
and  a  private  one  may  be  successful  (as  in  Hamilton,  O.,  with  gas, 
and  in  Stockholm,  Sweden,  with  the  telephone),  successful,  that  is, 
for  the  public  plant;  it  almost  certainly  means  ultimate  ruin  for 
the  private  plant,  and  is  subject  to  the  objection  of  a  wasteful  dupli- 
cation of  systems. 

The  Problem. 

The  problem  of  monopoly  is  to  retain  the  advantages  and 
get  rid  of  the  evils  of  the  monopolistic  systems  that  so  largely 
control  our  industries,  and  especially  the  public  utilities  of  our 
cities. 

The  Soubce  of  Benefit. 

The  element  in  monopoly  from  which  its  good  effects  arL=e 
is  the  exclusion  of  conflict,  with  its  wastes  and  debasements, 
from  a  certain  field,  and  the  development  of  union,  co-ordina- 
tion and  harmony  of  effort  within  said  field. 

The  Eoot  of  Evil. 

The  evils  of  monopoly  flow  from  power  plus  antagonism  of 
interest  between  those  who  own  and  control  the  monopoly  and 
those  who  are  served  by  it.  The  antagonism  of  interest  be- 
tween the  monopolists  and  the  public,  together  with  the 
power  which  the  monopoly  gives  to  make  that  antagonism  ef- 
fective, is  the  fundamental  cause  of  the  excessive  rates,  exor- 
bitant profits,  watered  stock,  false  accounting,  poor  service, 
disregard  of  public  safety,  unjust  discrimination,  fraud  and 
corruption,  defiance  of  law,  speculation  and  gambling,  con- 
gCition  of  wealth,  non-progressiveness,  ill  treatment  of  em- 
ployees, debasement  of  human  nature  and  opposition  to  de- 
mocracy, which  we  have  found  to  characterize  the  monopolistic 


Vol.  I,  where  twenty  great  cities  are  named  which  had  tried  competition  in 
gas,  always  with  the  same  result— combination,  with  division  of  territory, 
or  some  form  of  consolidation,  and  a  determined  onslaught  upon  the  public. 
In  Baltimore  the  companies  united  and  advanced  the  price  75  cents  a 
thousand. 

In  Harrlsburg  the  price  went  up  from  $1  to  |2.  In  New  York  some  years 
ago,  before  consolidation,  gas  sold  for  a  time  at  75  cents,  but  when  the  com- 
panies came  together  they  put  enuf  more  water  in  the  capital  to  buoy  it  up 
from  18  1/3  millions  to  39  millions,  and  raised  the  price  lo  $1.75,  a  jump  of 
130  per  cent,  above  the  competitive  level. 


I'LBLIC    OWNERSHIP    OF    PUBLIC    UTiLiTlES.  103 

systems  under  consideration.  All  these  things  are  contrary 
to  the  public  interest,  and  are  clearly  so  understood  by  oux 
people,  wherefore  they  could  not  exist  except  for  an  interest 
antagonistic  to  the  public  interest  and  in  possession  of  suffi- 
cient power  to  make  its  antagonism  effective.  To  abolish  the 
evils  of  monopoly,  therefore,  it  is  necessary  to  remove  the  an- 
tagonism of  interest  between  the  owners  and  the  public,  or 
else  to  deprive  the  monopolists  of  the  power  of  pushing  their 
interests  against  the  pubKc  interest.  That  the  antagonism  of 
interest  is  the  vital  cause,  and  the  power  merely  the  condition, 
is  clearly  evidenced  by  the  fact  that  the  very  men  who  man- 
age the  great  monopolies  with  a  single  eye  to  the  private  in- 
terests of  the  stockholders  who  own  the  properties,  are  often 
among  the  most  efficient  and  public-spirited  servants  of  the 
people  when  entrusted  with  public  business.  As  officers  of  a 
gas  company  or  a  street  railway  they  serve  the  company  with 
all  their  power,  and  any  interests  that  oppose  it  must  take  a 
back  seat.  As  officers  of  a  public  enterprise  they  serve  the 
public  vrith  equal  power.  They  are  true  to  the  financial  in- 
terests of  those  to  whom  they  owe  the  primary  financial  alle- 
giance as  they  understand  it.  If  they  are  to  manage  the  prop- 
erty or  conduct  the  business  of  A.,  B.  &  C,  they  think  it 
ought  to  be  managed  or  conducted  in  the  interest  of  A.,  B. 
&  C.  If  they  are  to  manage  the  property  or  conduct  the 
business  of  a  city,  they  think  it  ought  to  be  managed  or  con- 
ducted in  the  interest  of  the  city.  If  A.  &  B.  own  the  prop- 
erty, they  have  a  right  to  manage  it  for  their  benefit;  if  the 
city  owns  the  property  it  ought  to  be  managed  for  the  benefit 
of  the  city.  This  is  the  attitude  of  practically  all  our  honest 
business  men,  and  nine-tenths  of  them  are  honest,  according 
to  the  financial  ethics  of  the  day,  a  fundamental  maxim  of 
which  is  that  property  should  serve  the  interests  of  its  owner. 
Business  men  believe  that  if  a  plant  belongs  to  a  small  body 
of  stockholders  it  should  be  run  to  make  money  for  them;  and 
on  the  same  principle,  if  the  body  of  stockholders  expands 
until  it  includes  all  the  inhabitants  of  a  city,  or  in  other  words, 
if  the  plant  becomes  public,  they  believe  it  should  be  honestly 
conducted  for  the  benefit  of  the  public.  Make  them  the  agents 
of  a  few  private  stockholders,  and  the  community  must  take 


104 


THE  CITY   FOR  THE   PEOPLE. 


care  of  itself.  Make  them  the  agents  of  the  community,  and 
all  their  energy  and  integrity  come  over  to  the  service  of  the 
community.  It  is  at  bottom  a  question  of  ownership  and  the 
sentiment  and  business  ethics  that  go  with  it.  The  antagon- 
ism of  interest  arising  from  the  private  ownership  of  monopoly 
is  therefore  the  real  root  of  the  evils  of  monopoly.^  Public 
ownership  of  monopolies  removes  this  antagonism  between 
the  owners  and  the  public  by  making  the  public  and  the  own- 
ers identical.  Public  ownership  is  therefore  a  solution  of  the 
problem,  since  it  retains  and  even  intensifies  the  benefits  of 
union,  co-ordination,  exclusion  of  conflict,  etc.,  at  the  same 
time  that  it  eliminates  the  effective  cause  of  evil.  Further, 
Public  Ownership  is  the  only  complete  solution,  for  it  alone 
can  remove  the  active  principle  of  evil.  And  the  condition 
of  its  activity,  the  power  that  goes  mth  the  private  ownership 
and  control  of  a  great  monopoly  can  only  be  destroyed  by 


'  To  Illustrate  the  breadth  and  strength  of  the  antagonism  of  interest 
between  the  monopolists  and  the  public,  take  the  following  analysis  from 
my  Fabian  pamphlet,  "Municipal  Street  Cars:" 


The   People   Want. 

1.  Low  fares. 

2.  Good  service. 

3.  Seats  for  all. 

4.  Efficient  fenders. 


6.  Cars  well  warniod  in  winter. 


6.  Grooved  mils,  liiid  so  as  to  leave 

the  streets  smooth. 

7.  A  system  safe  and  convenient. 


8.  Reasonable  profits  on  actual  in- 

vestment. 

9.  Honest  book-keeping. 

10.  Just  assessments  and  equal  taxa- 

tion. 

11.  Honest    and     Impartial     govern- 

ment in  the  interests  of  all. 

12.  Good      wages      and       reasonable 

hours  for  all  employees. 

13.  Full  freedom  of  organization. 

14.  Vestibules  for  the  motormen. 


15.  Arbitration  of  difficulties. 

In  short,  the  people  ask  for  justice, 
kindness,  fair  play  and  the  pub- 
lic good. 

The  people  say,  "Do  what  is  fair  by 
your  patrons  and  employees, 
and  all  will  be  well." 


The  Cokporatiojjs  Want. 

1.  High  fares. 

2.  Small   exjjenses. 

3.  Passengers  on  the  straps,  In  the 

aisles   and   on   the   platforms. 

4.  No   expense   for   cushioned   fend- 

ers; it  is  cheaper  to  pay  dam- 
ages than  buy  good  fenders. 

5.  Little  or  no  expense  for  heating: 

it  is  cheaper  to  freeze  the  pas- 
sengers. 

6.  Th^  cheapest  rails,  whatever  ef- 

fect it  may  have  on  the  streets. 

7.  The      dangerous,      ugly,      street- 

marring  overhead  trolley  sys- 
tem. 

8.  Big  dividends  on  watered  stock. 

9.  Doctored   accounts. 

10.  Shrunken    assessments    and    es- 

cape from  taxation. 

11.  Corrupt    government    in    the    in- 

terest of  corporations. 

12.  Long  hours  and  short  wages  for 

the  men;  short  hours  and  big 
wages  for  the  managers. 

13.  No  union  men. 

14.  No   expense   for  vestibules;   men 

are  cheaper  than  glfiss  and 
wood;  if  a  man  freezes  now 
and  then  it  is  easy  to  buy  an- 
other. 

15.  Their    own    Imperial    way,    with 

"nothing  to  arbitrate." 
In  short,  the  corporations  aim  at  for- 
tunes for  industrial  aristocrats. 

The  corporations  say,  a  la  Vander- 
bllt  (and  act  It  when  they  do 
not  say  It),  "The  people  be 
d— d!" 


PUBLIC   OWiVEUSHIP   OF   PUBLIC   UTILITIES.  1 05 

elimiiiating  the  said  private  ownership,  or  the  control,  which 
is  the  essence  of  the  ownership.* 

Competition. 

Competitiooi  is  clearly  no  solution  of  the  monopoly  prob- 
lem. Fii'st,  because  it  forfeits  the  benefits  of  monopoly, 
which  consist  precisely  in  getting  rid  of  competition  with  its 
wastes  and  obstructions.  Second,  because  it  is  impossible. 
(See  above,  "The  Benefits  of  Monopoly,"  also  Appendix  II.) 

Regulation. 

Regulation,  tho  of  decided  use,  is  not  a  solution  of  the  prob- 
lem of  monopoly,  because  it  cannot  remove  the  root  of  the 
evil,  nor  the  soil  in  which  it  thrives.  The  antagonism  of  inter- 
est remains  as  long  as  the  private  ownership  remains,  and  the 
power  to  make  the  antagonism  effective  will  also  remain  so 
long  as  the  private  ownership  of  the  monopoly  continues. 
Private  ownership  of  monopoly  means  antagonism  to  public 
interest,  and  it  also  means  power.  If  you  take  away  the  mo- 
nopolist's control,  you  take  away  the  heart  of  his  ownership. 
The  paper  title  is  not  the  ownership;  it  is  only  the  evidence  of 
ownership.  The  substance  of  o^vnership  is  the  power  to  con- 
trol the  property.  You  may  modify  this  power  and  still  leave 
the  monopolist  some  ownership,  but  if  you  take  the  whole 
power  you  take  the  ownership.-'     And  if  you  do  not  take  the 


*  If  yon  leave  the  private  title  and  do  not  take  the  whole  control,  you 
have  still  the  antagonism  and  the  power,  and  the  evils  will  result  to  the  ex- 
tent of  the  power  you  have  left  outstanding.  If  you  take  the  whole  control, 
you  take  the  real  ownership,  however  the  paper  title  may  read.  So  that, 
whether  you  aim  to  annihilate  the  active  cause  of  evil  or  the  condition  of 
its  operation,  you  are  driven  alike  to  Public  Ownership  in  substance, 
whether  it  be  so  named  or  not. 

'  To  take  the  whole  power  by  taking  the  title  and  control  openly  on  just 
compensation  is  fair  and  right.  It  is  also  fair  to  modify  the  power  of  the 
monopolists  by  laws  and  ordinances  reducing  rates  and  overcapitalization, 
obtaining  better  service,  alleviating  the  condition  of  employees,  securing 
publicity  of  accounts,  diminishing  discrimination,  and  much  may  be  done  in 
this  way  to  lessen  the  ^vils  of  private  monopoly  and  to  smooth  the  way  to- 
wards completely  harmonious  public-spirted  industry.  But  to  take  the 
whole  power  of  control  under  the  guise  of  regulation  would  amount  to  taking 
the  property  for  public  use  without  just  compensation.  "Regulation",  that 
goes  as  far  as  this  ceases  to  be  regulation,  and  becomes  public  ownership 
by  a  process  that  comes  pretty  close  to  confiscation;  and  yet  if  it  does  not 
go  so  far  as  this  the  problem  is  not  solved,  for  some  power,  plus  antagonism, 
will  remain;  in  other  words,  regulation  cannot- solve  the  problem,  and  noth- 
ing hut  public  ownership  or  complete  co-operation  can. 

If  we  say  to  B.,  the  owner  of  a  ferry-boat,  "You  must  run  your  boat 
so   and   so,    in   accordance   with   our   regulations,    charge  just   what   we   tell 


106  THE  CITY  FOE  THE  PEOPLE. 

whole  power,  if  any  loophole  is  left  for  the  monopolist  to  use 
the  forces  of  the  monopoly  according  to  his  own  discretion,  to 
that  extent  the  business  will  be  managed  in  private  interest 
(without  the  natural  checks  of  competition)  and  the  evils  of 
monopoly  will  make  their  appearance. 

As  a  matter  of  fact,  regulation  has  met  with  all  sorts  of 
failures  and  difficulties.  It  works  under  serious  disadvantages. 
(1)  It  lets  one  set  of  men  do  the  work  and  employs  another 
set  to  determine  how  it  shall  be  done,  and  a  third  set  to  watch 
the  first,  and  see  that  the  regulations  provided  by  the  second 
set  are  properly  obeyed.  (2)  It  leaves  the  antagonism  of  in- 
terest rankling  underneath.  The  monopolists  and  their  agents 
resent  the  outside  control,  and  scheme  to  evade  or  defy  the 
law.  The  managers  regard  the  gas  plants,  street  railways, 
etc.,  as  the  property  of  themselves  and  the  stockholders  who 
elect  them  and  pay  them;  they  regard  effective  regulation  as 
a  violation  of  their  property  rights,  and  endeavor  to  nullify 
it;  and,  if  compelled  to  serve  the  public  instead  of  the  stock- 
holders, they  do  so  in  a  half-hearted,  rebellious  way,  perpetu- 
allv  seeking  a  path  of  escape.  (3)  The  added  impulse  to  fraud 
and  evasion  emphasizes  the  corrupting  of  public  officers  and 
the  demoralization  of  business  men.  The  most  powerful  and 
unscrupulous  corporations,  the  very  ones  most  in  need  of  con- 
trol, are  able  to  avoid  the  law.  They  get  their  vassals  ap- 
pointed as  commissioners,  or  they  capture  the  regulators  by 
their  intelligence,  wealth  and  courtesy,  or  they  block  them 
by  false  accounts,  or  tie  their  hands  by  imperfections  in  the 
law,  introduced  thru  the  force  of  their  money  and  influence 
and  the  cunning  of  their  keen  attorneys.  There  are  very  few 
laws  that  the  great  corporations  are  bound  to  obey,  and  the 


you  to,  pay  us  what  we  choose  to  demand  and  keep  your  accounts  as  w<* 
direct;  your  agent  must  do  as  we  say,  not  as  you  say,  in  all  respects  affect- 
ing our  interests;  you  may  keep  the  title  to  the  boat,  and  we  will  allow  yon 
pome  interest  on  the  money  you  have  invested  in  it,  but  the  management  of 
the  property  is  to  be  as  we  direct"— if  we  say  this,  we  take  the  vital 
ownership  to  ourselves,  and  the  case  stands  substantially  as  if  we  had  bor- 
rowed the  money  from  B.  at  interest  fixed  by  ourselves,  and  built  the  bont 
and  controlled  it  in  our  own  name. 

Any  such  complete  absorption  of  control  by  the  public  would  probably 
be  regarded  by  the  courts  as  unconstitutional  and  void,  as  taking  private 
property  for  public  use  without  compensation;  and  might  really  be  quite  un- 
just, especially  if  the  interest  were  small  and  the  risk  were  left  on  B.,  or  if 
other  monopolists  were  left  in  larger  control  of  their  properties,  thereby 
depriving  B.  of  the  equal  protection  of  the  laws.  Yet  any  regulation  short 
of  such  complete  absorption  of  control  will  leave  a  margin  of  monopoly  evil. 


PUBLIC   OWXEKSHIP   OF   PUBLIC   UTILITIES.  107 

power  of  the  companies  to  defeat  the  wdll  of  the  people  is 
growing  every  day  thiii  combination,  consolidation  and  the 
increase  of  corporate  wealth.  So  thoro  is  the  control  of  the  big 
monopolies  over  the  machinery  of  regulation  that  even  in  the 
stat-es  where  this  method  has  been  most  fully  tried  the  giant 
companies  regard  the  system  as  a  protection  and  not  as  a  men- 
axje.  (4)  The  courts  are  apt  to  interfere  to  prevent  the  en- 
forcement of  any  regulation  that  cuts  near  the  bone  in  the 
financial  quarter.  Over  capitalization  and  the  innocent  pur- 
chaser are  an  infallible  vaccine  to  keep  off  an  epidemic  of  just 
rates,  which  the  corporators  fear  worse  than  the  plague.  (5) 
As  long  as  the  monopolists  can  keep  their  excessive  rates,  they 
can  buy  the  fulfilment  of  their  wishes  the  rest  of  the  way. 

In  short,  regulation  fails  at  the  vital  points.  It  leaves  the 
monopolist  in  possession,  with  right  of  property  and  more  or 
less  control.  He  has  a  full  purse,  a  cunning  lawyer  and  a  flex- 
ible conscience,  bowing  before  the  business  maxim  that  prop- 
erty is  to  be  managed  in  the  interests  of  its  owner,  and  the  rest 
is  easy.  In  dealing  with  little  concerns,  regulation  is  often 
successful  in  a  high  degree,  tho  never  attaining  the  full  per- 
fection of  a  harmony  of  interests;  but  in  dealing  with  great 
affairs,  tho  good  is  accomplished  here  and  there,  the  general 
result  at  the  vital  points  is  failure. 

I  suppose  no  state  has  done  more  in  the  direction  of  regu- 
lating monopolies  than  Massachusetts.  It  is  regarded  as  the 
model  state  in  this  particular.  And  there  is  no  doubt  that 
good  has  been  done  in  the  way  of  keeping  down  capitalization 
in  the  towns  and  smaller  cities,  improving  the  service  slightly, 
publishing  some  information  and  reducing  rates  somewhat. 
But  when  we  come  to  the  W^t  End  and  the  gas  companies 
of  Boston,  just  where  regulation  is  needed  most,  what  do  we 
find?  We  find  these  interests  for  the  most  part  regulating 
the  regulators.2  Look  at  the  Bay  State  Gas  case  and  the  West 
End  investigation!     (See  above,  8  and  9.)     See  the  Massa- 


» I  say  for  the  most  part,  for  there  are  notable  exceptions.  The  Railroad 
Commission  did  so  far  listen  to  public  opinion  and  common  sense  as  to  refuse 
assent  to  a  99-year  lease;  and  a  25-year  lease. In  Boston  is  better  than  a  yay- 
year  lease  in  Philadelphia  or  New  York,  or  a  50-year  lease  in  Ci?cl°natl, 
even  with  all  the  unfair  advantages  and  immunities  granted  the  West  taia 
St.  Railway  Interests  with  the  25  years.  (See  "Municipal  Monopolies, 
p.  561.) 


108  THE  CITV    FOK  THK   PEOl'I.K. 

chusetts  Gas  Commission  suppressing  facts  of  \'ital  interest 
to  the  people!  Look  at  the  crowded  cars,  the  overcapitaliza- 
tion, the  excessive  rates  and  the  unprotected  motormen  on  the 
West  End!  Look  at  the  watered  gas  stock,  4  or  5  times  the 
gas  capitalization  of  New  York  or  Chicago,  and  ten  times 
the  true  figure!  See  how  the  Gas  Commissioners,  while  hold- 
ing down  the  capitalization  of  comparatively  small  companies 
outside  of  Boston  so  that  it  fell  from  $5.72  in  1886,  to  $2.87 
in  1897,  have,  nevertheless,  failed  to  prevent  the  rise  of  gas 
capitalization  in  Boston  from  less  than  $4  in  1888,  to  over 
$42  in  1898. 

The  companies  pay  the  commissioners'  salaries  and  usually 
have  the  privilege  of  nominating  them.  Some  of  them, 
both  on  the  railway  and  the  light  commissions,  are  known 
to  be  the  companies'  vassals.  In  some  instances  the  i>erson 
appointed  as  commissioner  has  been  known  to  have  pre- 
viously acted  as  attorney  for  one  of  the  chief  monopolies 
whose  business  he  would  have  to  regulate  as  commissioner. 
It  can  easily  be  imagined  in  what  way  he  would  be  likely  to 
regulate  it.  It  is  natural  for  the  companies,  when  nominat- 
ing commissioners,  to  select  men  they  know  to  be  their  friends 
and  sympathizers.  And  even  commissioners  without  a  pre- 
vious bias  are  easily  led  to  take  a  corporation  view  of  the  situ- 
ation. They  are  business  men,  and  inclined  to  accept  the 
"ethics  of  success."  They  are  in  continual  touch  with  the 
companies'  officers  and  attorneys.  They  find  these  officials 
exceedingly  courteous  and  considerate,  full  of  intelligence, 
great  with  successful  conduct  of  large  affairs,  and  bubbling 
over  with  money.  Without  any  corrupt  relations  at  all  the 
commissioners  may  very  naturally  acquire  a  much  deeper 
sympathy  and  friendship  for  the  owners  and  managers  of  the 
monopolies  they  are  supposed  to  regulate  than  for  the  masses 
of  the  people  whom  they  do  not  meet  intimately  day  by  day, 
and  who  do  not  pay  their  salaries,  or  extend  kind  invitations 
to  take  dinner  at  the  "Algonquin,"  or  show  any  appreciation 
or  knowledge  of  gas  and  electric  light  and  street  railway 
business,  anyway.  The  Michigan  Board  of  Railway  Com- 
missioners recently  congratulated  themselves  and  the  public 
on  the  friendly  relations  existing  between  themselves  and  the 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  109 

corporations  they  are  supposed  to  regulate.  But  Governor 
Pingree,  then  Mayor  of  Detroit,  took  a  diiferent  view  of  the 
situation,  and  with  his  usual  emphatic  directness,  he  said: 
"You  have  no  business  to  have  the  relations  so  friendly." 

Professor  Bemis  and  Professor  Gray  have  made  exhaustive 
studies  of  the  effects  of  regulation  in  Massachusetts  in  the 
department  of  gas  and  electricity,  and  I  find  scattered  thru 
their  writings  various  paragraphs  which,  when  brought  to- 
gether, make  the  most  important  comment  on  tliis  subject 
that  has  jel  been  ^vritten,  I  believe.  Here  is  the  substance 
of  some  of  the  principal  passages.     Professor  Bemis  says:^ 

"The  reports  of  the  Massachusetts  Gas  Commission  give 
many  valuable  facts  as  to  leakage,  candle  power,  etc.,  but 
suppress  certain  vital  facts  necessary  to  the  formation  of  a 
correct  judgment  by  the  people  as  to  the  reasonableness  of 
the  charges  of  the  companies.  *  *  *  It  (the  Gas  Cora- 
mission)  has  been  so  timid  in  its  handling  of  the  larger  com- 
panies, so  secretive  in  its  locking  up  of  the  facts  it  gathers 
from  the  comi>anies,  since  it  is  the  only  court  on  record  that 
keeps  secret  the  evidence  on  which  it  acts,  and  has  produced 
the  general  impression  of  being  so  hostile  to  municipal  owner- 
ship, that  the  people  of  Massachusetts  do  not  consider  the 
Commission  idea  more  than  a  half-way  measure." 

"The  Commission  has  never  allowed  a  single  competing  gas 
company  in  the  state,  and  has  often  granted  permission  to  a 
gas  company  to  build  an  electric  plant  in  preference  to  an  in- 
dependent electric  company,  on  the  ground  of  the  possibilities 
of  economy  in  the  union  of  such  monopolies.     *    *    But  the 


'  See  "Municipal  Monopolies."  596  to  602,  631  to  660,  and  "JIunicipal 
Ownership  of  Gas  In  the  U.  S.,"  pp.  120-3. 

Under  the  Massachusetts  law  the  salaries  and  expenses  of  the  Commis- 
sioners are  paid  by  the  companies  controlled  by  it  in  proportion  to  their 
gross  earnings.  All  gas  companies  are  forbidden  to  issue  stock  dividends. 
They  must  keep  their  books  In  the  manner  prescribed  by  the  board,  and 
allow  the  latter  to  examine  them  at  any  time.  The  board  must  frequently 
Inspect  the  quality  of  gas,  the  pressure,  meters,  etc.  It  may  require  as 
full  reports  of  expenses  and  assets  as  it  desires.  It  annually  requires  the 
gas  and  electric  companies  to  fill  out  under  oath  complex  schedules  of  de- 
tails, but  the  big  companies  omit  enuf  to  make  it  Impossible  to  "size  up" 
their  business,  and  the  board  says  it  can't  compel  the  companies  to  return 
said  facts.  On  petition  of  twenty  consumers,  or  of  the  mayor  of  a  city,  or 
the  selectmen  of  a  town,  the  Commission  must  give  a  hearing,  make  an  In- 
vestigation and  Issue  an  opinion  or  order  relative  to  the  proper  price  of 
light;  whether  a  new  company  should  be  admitted  to  a  city;  whether  more 
securities  should  be  issued;  whether  better  quality  of  light  should  be  sup- 
plied—in fact,  almost  any  grievance  of  the  consumer  can  be  brought  before 
the  Commission,  and  any  disobedience  of  Its  orders  is  twrned  over  to  the 
attorney  general,  who  is  expected  to  take  proper  legal  action  to  enforce  the 
decision  of  the  board. 


110  THE  CITY  FOB  THE  PEOPLE. 

power  of  wealth  has  induced  the  Legislature  at  different  times 
to  incorporate  three  leading  companies  in  Boston:  The  Bay 
State,  the  Brookline  and  the  Massachusetts  Pipe  Line  Com- 
panies. But  it  has  now  admitted  the  folly  of  its  action  by  ask- 
ing the  Commission  (1898)  to  report  a  plan  for  the  consoli- 
dation of  the  Boston  companies." 

After  speaking  of  the  success  of  the  Commission  in  pre- 
venting unreasonable  capitalization  of  the  gas  companies  out- 
side of  Boston,  and  even  diminishing  the  capitalization  per 
thousand  feet  in  recent  years,  the  Professor  says: 

"The  Commission,  however,  has  been  as  great  a  failure  in 
its  control  of  the  large  Boston  companies  in  this  matter  of 
capitalization  as  in  that  of  competition.  The  power  of  wealth 
at  times,  without  necessarily  any  direct  corruption,  rendered 
the  Commission  speechless,  and  made  the  Legislature  its  pliant 
tool;  and  has  shown  the  difficulty  of  framing  any  law  for  the 
regulation  of  millionaires  in  the  ownership  of  public  fran- 
chiee  that  able  lawyers  cannot  find  a  way  to  avoid." 

Prof.  John  H.  Gray,  of  the  Northwestern  University,  who 
has  made  a  most  careful  investigation  of  the  Massachusetts 
situation  thru  personal  study  in  the  state  and  in  the  office 
of  the  G-as  and  Electric  Commission,  and  who,  of  all  our 
scientific  writers,  is  one  of  the  most  favorable  to  regulation, 
has  come  to  several  important  conclusions,  of  which  the  fol- 
lowing is  the  substance:  * 

1.  The  law  creating  the  Massachusetts  Commission  was 
drawn  by  the  attorney  of  the  Boston  Gas  Company,  intro- 
duced into  the  Boston  Board  of  Aldermen  by  his  brother,  and 
by  that  body  introduced  into  the  Legislature. 

2.  Tlje  requirement  of  sworn  returns  is  "morally  degrading 
and  economically  useless  where  no  right  or  practice  of  (effec- 
tive) verification  exists." 

3.  In  most  cases  where  the  right  of  audit  and  inspection  is 
reserved,  "the  well-known  hostility  of  the  corporations  to  the 
exercise  of  this  right,  the  bad  traditions  of  administration 
and  the  recognized  weakness  of  the  state  governments,  made 
an  effective  examination  practically  impossible." 


*  See  Municipal  Affairs,  June,  '98,  and  articles  In  the  Quarterly  Journal 
of  Economics  during  1898-9.     Also  "Municipal  Monopolies,"  p.  653,  et  seq. 


I'UBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  Ill 

4.  "The  corporators  often  exercise  a  direct  and  powerful 
influence  on  the  elections  and  appointments  to  office,"  with 
a  view  to  keeping  the  governments  incapable  of  enforcing  the 
rights  of  the  people. 

5.  Massachusetts  is  the  only  state  that  has  ever  succeeded 
in  finding  out  substantially  what  the  gas  companies  have  actu- 
ally done,  and  it  is  highly  doubtful  if  the  facts  could  ever 
have  been  got  at  except  on  an  understanding  with  the  Com- 
mission that  it  would  withhold  them  from  the  people. 

6.  "Our  age  is  so  thoroly  commercialized  and  the  corpora- 
tions have  been  allowed  to  practice  all  sorts  of  abuses  and  con- 
duct their  business  without  effective  regulation  so  long  that,  in 
the  present  backward  condition  of  political  education,  the  pri- 
vate corporalions  are  stronger  than  the  governments" 

7.  "Xo  act  of  compensation  or  regulation  can  be  effective 
until  the  companies  are  convinced  that  they  will  be  better  off 
undei*  it  than  under  present  or  impending  legislation.  *  *  * 
Xo  regulative  act  beneficial  to  the  public  can  be  passed  with- 
out the  consent  of  the  gas  companies,  nor  can  it  be  enforced 
without  their  co-operation.  *  *  *  The  act  establishing 
the  (gas)  Commission  was  drafted  by  and  passed  at  the  in- 
stigation of  the  Boston  companies."  (It  put  the  power  into 
the  hands  of  their  friends  and  nominees,  and  secured  them 
against  competing  companies,  at  the  same  time  that  it  made 
the  people  think  they  were  getting  control  of  the  monopolies, 
and  so  tended  to  quiet  popular  movements  against  them.) 

8.  "It  has  been  claimed  that  the  Commission  has  not  done 
all  that  the  public  expected  of  it;  that  it  has  even  winked  at 
the  violation  of  law  by  the  companies,  and  that,  too,  in  par- 
ticulars over  which  it  was  given  special  jurisdiction.  While 
the  charge  is  possibly  true,  it  is  equally  probable  that  the 
greatest  ^visdom  the  Commission  has  ever  exhibited  is  just  at 
this  point.  It  has  probably  done  all  that  it  could  do  and  con- 
tinue to  exist." 

The  last  two  sentences  sufficiently  indicate  Professor  Gray's 
strong  bias  in  favor  of  the  Commission,  and  render  the  rest 
of  his  testimony  all  the  more  valuable — in  the  nature  of  ad- 
missions of  the  defects  of  that  which  he  defends  as  the  only 
means  of  keeping  us  out  of  "recklcv^s  socialism." 


11:^  THE  CiTV    FOR  THE   I'EOPLK. 

Of  the  Massachusetts  Railway  Commission  Professor  Bemis 
says  that  it  has  kept  fictitious  capitalization  at  a  lower  level 
than-  in  other  states,  but  that  "Its  weakness  is  beginning  to 
appear.  With  gromng  financial  strength,  the  Massachusetts 
street  railways  are  securing  enuf  influence  over  the  Legisla- 
ture to  cripple  the  Commission  and  secure  exemption  from 
an  unpleasant  amount  of  municipal  control."  '^  This  state- 
ment is  not  quite  accurate.  The  street  railways  have  long  had 
sufficient  influence  in  the  Legislature  to  accomplish  almost 
anything  they  wisht,  but  they  have  not  sought  to  cripple  the 
Commission;  on  the  contrary,  they  rely  upon  it  confidently, 
and  have  recently  got  the  Legislature  to  increase  its  powers. 
Professor  Bemis  recognizes  this  fact  on  the  next  page,  where 
he  refers  to  the  recent  encroachments  of  the  West  End,  al- 
ready spoken  of,  and  to  the  fact  that  the  right  of  cities  to 
revoke  locations  has  recently  been  taken  away,  and  made  to 
depend  on  the  approval  of  the  Railroad  Commission,  of  which 
a  writer  in  The  Street  Railway  Journal  for  September,  1898, 
says:  "Its  wise  decisions  have  probably  done  more  to  establish 
electric  railroading  in  Massachusetts  on  a  sound  and  profitable 
basis  than  any  other  influence."  The  companies  are_satisfied 
with  the  Commission,  but  a  less  "profitable  basis"  in  some  cases 
might  be  as  well  for  the  public. 

To  take  power  from  the  municipality  and  give  it  to  a  small 
commission  nominated  and  paid  and  largely  under  the  influ- 
ence of  the  companies  is  a  decided  step  in  retrogression.  The 
path  of  progress  lies  in  tlie  direction  of  putting  more  power 
in  the  hands  of  the  people,  and  according  municipalities  full 
control  of  local  franchises  and  monopolies. 

The  final  and  most  effective  comment  on  regulation  is  the 
fact  that  Massachusetts,  the  original  home  and  chief  example 
of  the  plan,  and,  as  Professor  Cray  says,  "probably  the  best 
governed  of  our  states,"  is,  nevertheless,  the  region  of  the 
most  rapid  growth  of  the  movement  for  public  ownership. 

The  Real  Solution. 
The  real  solution  of  the  monopoly  problem  is  public  owner- 


'Munlclpa:   Mouopolies,  "   ji.   558. 


PUBLIC    OW>'ERSHIP    OF   PUBLIC    UTILITIES.  113 

ship.  That  alone  can  remoTe  the  antagonism  of  interest  be- 
tween the  o\vners  and  the  public,  which  is  the  root  of  evil,  or 
destroy  the  power  which  belongs  to  private  ownership  o#  mo- 
nopoly to  male  the  antagonism  effective.  Both  competition 
and  regulation  fail  in  philosophy  and  in  fact  to  solve  the 
problem  of  monopoly.  There  is  nothing  left  but  public  owner- 
ship; in  other  words,  co-operative  industry,  for,  in  case  of  the 
public  utilities  we  are  considering,  co-operation  of  all  who  are 
interested  in  the  service  means  nothing  more  nor  less  than 
public  ownership  and  operation. 

It  is  not  monopoly  that  is  bad,  but  private  monopoly.  Mo- 
nopoly per  se  is  good,  because  it  means  elimination  of  internal 
conflict  between  the  leaders  of  industry.  Private  monopoly 
is  bad  because  it  retains  the  conflict  between  the  owners  and 
the  public  and  between  the  employers  and  employed.  Cross 
off  the  "private"  and  substitute  public,  and  you  eliminate  all 
these  conflicts  and  the  evils  that  go  with  them.  It  is  not  the 
public  water  works,  or  electric  plants,  or  public  schools  and 
highways  that  corrupt  councils  and  legislatures,  charge  high 
rates,  produce  enormous  profits,  cong^t  benefit  instead  of  dif- 
fusing it,  cultivate  aristocracy,  deny  self-government  and  un- 
dermine democracy,  ill  treat  employees,  put  out  false  statis- 
tics, or  defy  the  law.  It  is  the  private  monopolies,  not  the 
public  ones,  that  do  these  things.  A  broader  ownership,  then, 
is  the  key  to  the  situation.  A  man  is  better  off  when  he  owns 
a  good  railway,  or  water  plant,  or  gas  plant  himself  than  when 
it  is  owned  by  another;  and  the  same  is  true  of  a  city.  A  pri- 
vate corporation  will  operate  its  Tvorks  in  its  own  interest, 
and,  therefore,  contrary  to  the  public  interest.  It  is  part  of 
the  business  ideal  to-day,  and  a  pari;  that  is  well  carried  out, 
that  properiiy  is  to  be  manag«i  in  the  interest  of  its  owner. 
If  the  people  want  the  light  works,  street  railways  and  tele- 
phones nm  in  their  interest,  they  must  own  them. 

It  is  better,  of  course,  to  regulate  monopolies  than -to  leave 
them  to  act  out  their  own  sweet  will  unchecked.'^  It  is  better 
to  fight  forever  than  to  submit  to  oppression.  But  it  is  a 
great  deal  better  yet  to  remove  the  c^use  of  the  difficulty  by 
unifying  the  interests  involved.  Public  ownership  ^rill  do 
this,  and  it  is  the  only  thing  that  can  do  it.     Let  the  people 


Ill  TFIK  CITY    FOR  THE   PEorLii. 

own  the  water  works,  gas  and  electric  plants,  street  railway:- 
and  telephone  exchanges,  and  the  interests  of  ownersliip  be- 
oonft  identical  with  the  interests  of  the  public.  Make  the 
change  fairly,  not  by  confiscation,  or  anything  approaching 
confiscation.  Apply  the  principle  that  when  a  change  from 
existing  laws  and  institutions  is  made  for  the  benefit  of  the 
public,  the  public  should  bear  the  burden,  if  any  is  caused 
by  the  change,  and  not  throw  the  cost  in  undue  proportion 
on  any  individual  or  c]a-5.  Be  carefrl  t>  get  real  puMic 
ownership,  and  not  a  mere  change  from  private  monopolists 
to  private  politicians.  Have  good  civil  service  rules  and  the 
referendum  as  part  of  the  plan.  And  then,  if  there's  any 
reasonable  degree  of  intelligence  and  public  spirit  in  the  com- 
munity the  problem  is  solved. 

Excessive  rates  and  enormous  profits  for  a  few  will  no 
longer  exist,  for  the  motive  wall  be  changed  from  private  profit 
to  public  service.  The  watered  stock,  inflated  capitalization, 
false  accounting,  discriminations,  frauds  and  corruptions  and 
violations  of  law,  intended  to  cover  or  protect  or  render  pos- 
sible the  schemes  of  profit,  mil  fall  with  their  cause.  The 
change  of  motive  will  also  tend  to  good  service  instead  of 
poor,  safety  instead  of  danger,  and  progress  instead  of  inertia, 
tho  it  may  not  always  pay  in  dollars  and  cents.  Public  plants 
have  no  stocks  to  gamble  with.  They  do  not  make  million- 
aires or  cause  congestion  of  wealtli  and  power,  or  debase  hu- 
man nature,  or  oppose  democracy.  Their  tendency  is  to  serve 
at  cost.  If  there  is  any  profit  it  goes  to  the  public  treasury. 
No  aristocratic  salaries  are  paid.  Real  public  ownership  is 
the  very  essence  of  democracy.  And,  instead  of  debasing 
human  nature  by  conflict  and  corruption,  and  by  dividing  men 
into  masters  and  mastered,  it  brings  men  together  in  a  union 
of  interest,  accords  to  all  a  share  in  the  development  arising 
from  the  exercise  of  judgment  and  discretion  in  the  control 
of  business  affairs,  and  affords  the  co-operative  conditions 
necessary  for  the  evolution  of  the  highest  traits  of  conscience 
and  character.^ 


To  carry  the  matter  beyond  appeal.  It  is  needful,  of  course,  to  show 
not  only  that  public  ownership  retains  the  good  and  cures  the  ills  of  privatp 
monopoly,  but  also  that  it  does  not  entail  as  great,  or  greater  evils  of  its 
own.    This  we  shall  do.    We  may  note,  a  priori,  that  a  change  from  conflict 


public  ownehshli'  of  public  utilities.  115 

Advantages  of  Public  Ownership. 

I.  Loirer  rates  would  naturally  accompany  the  change  of 
aim  from  private  profit  to  public  service,  and  the  fact  accords 
^vit•h  the  theory. 

Roads. — When  Glasgow  took  over  the  tramways,  fares  were  re- 
duced one-third  at  once,  and  reductions  have  been  continued  till 
now  the  average  fare  is  below  2  cents,  and  less  than  half  the 
average  fare  collected  by  the  private  company  half  a  dozen  years 
ago.  Our  private  companies  have  done  nothing  like  that.  We  pay 
the  West  End  the  same  5-cent  rate  we  did  at  the  beginning  of  the 
decade. 

The  only  tramway  owned  by  the  public  in  this  country  is  the 
bridge  line  between  New  York  and  Brooklyn,  which  for  years  was 
operated  by  the  municipalities  in  partnership  on  what  was  nearly 
the  same  as  a  2y2-cent  fare  (3  cents  single  fare  and  2  for  5  cents). 
The  ride  was  short,  it  is  true,  but  the  private  companies  charge  5 
cents  no  matter  how  short  the  ride,  and  the  investment  (15  mil- 
lions) was  large  enuf  for  100  miles  of  ordinary  cable  line  (it  would 
have  been  watered  up  to  40  or  50  millions  in  private  hands,  likely), 
and  the  wages  paid  were  very  high,  yet  a  good  profit  was  realized. 
The  cities  lately  gave  the  private  companies  a  right  to  run  their 
cars  over  the  bridge,  so  that  a  passenger  might  cross  on  the  same 
car  that  would  carry  him  to  his  destination,  but  the  rights  of  the 
public  have  been  carefully  guarded.  If  New  York  and  Brooklyn 
had  been  ready  for  the  move,  it  would  have  been  better  for  them 
to  have  united  the  services  by  taking  over  the  private  railways  and 


to  co-operation,  from  secret  fraud  to  open  dealing,  from  private  profit  to 
public  service,  from  congestion  of  benefit  to  diffusion  of  it,  from  speculation 
and  gambling  to  quiet  certainty,  from  defiance  of  law  to  obedience,  from 
danger  to  safety,  from  watered  stock  and  false  accotints  to  honest  capital 
and  truthful  records,  from  denial  of  democracy  to  government  by  and 
for  the  people,  from  conditions  tending  to  the  debasement  of  human 
nature  to  conditions  tending  to  the  elevation  of  human  nature,  cannot.  In 
the  very  nature  of  things,  be  attended  by  evils  greater  than  those  it  cures, 
otherwise  devolution  would  be  better  than  evolution,  retrogression  better 
than  progress.  There  Is  nothing  quite  perfect  in  this  world,  unless  it  may 
be  the  blue  sky  or  a  beautiful  flower,  and  even  public  ownership  has  its  diflB- 
culties,  but  they  are  virtues  and  charms  compared  with  the  evils  of  private 
monopoly.  We  shall  find  that  philosophy,  history  and  experience  unite  In 
proving  that,  even  if  all  the  objections  the  monopolists  and  their  sympa- 
thizers have  ever  raised  against  public  ownership  were  admitted  to  be  true, 
it  would  still,  on  the  whole,  be  vastly  superior  to  private  monopoly. 

When  we  look  closely  at  the  matter  we  shall  find  there  is  no  difficulty 
at  all  with  public  ownership;  the  difficulty  lies  In  the  process  of  attainin.tj 
public  ownership.  The  main  trouble  is  to  obtain  kbal  public  ownership, 
and  the  chief  sophistry  of  objectors  lies  In  mistaking  a  change  from  one 
form  of  private  ownership  to  another  form  of  private  ownership  for  a  change 
to  public  ownership.  The  difficulty  has  been  and  is  being  overcome  in  many, 
many  cases,  and  can  be  overcome  in  every  case  where  the  people  come  to 
understand  the  facts,  and  have  civic  patriotism  enuf  to  unite  in  a  truly 
co-operative  undertaking  for  the  good  of  all  concerned.  The  sophistry  is 
easily  exposed,  and  when  once  understood  the  matter  becomes  very  clear. 

The  simple  question  is:  Shall  the  city  be  run  for  the  benefit  of  the 
people  or  for  the  benefit  of  a  few  individuals?  Shall  the  great  franchises 
and  monopolies,  the  value  of  which  has  been  created  by  the  people,  belong 
to  a  few  for  their  private  profit,  or  shall  they  belong  to  the  people  for  the 
public  good?  Shall  the  streets  belong  to  the  community  that  builds  them 
and  gives  them  value  by  Its  presence  and  Its  Industry,  or  shall  they  be 
turned  over  to  little  groups  of  stockholders  for  corporate  profit? 


116  THE  CITY  FOR  THE  PEOPLE. 

let  the  people  have  a  3-cent  fare  all  over  Greater  New  York;  but 
in  the  present  state  of  public  education  the  lease  is  probably  as 
good  a  move  as  could  be  had. 

Bridges. — There  is  a  bridge  at  St.  Louis  owned  by  the  Goulds, 
and  the  contrast  in  the  charges,  etc.,  on  the  millionaires'  bridge 
and  on  the  bridge  owned  by  New  York  and  Brooklyn  is  one  of  the 
most  enlightening  it  has  been  my  fortune  to  discover. 

The  Two  Bridges. 

Charges  for  Crossing. 
Private    Bridge.  Municipal  Bridge. 

Bt.   Louis  Bridge   (Cost  $13,000,000,  Brooklyn  Bridge,  (Cost  $15,000,000.> 

bought    by    Gould    interests  On  L  roads  3  cents  (2  fares  for 

for  $5,000,000.)  5  cents)   if  you  simply   wish 

to   cross   the   bridge — if   you 

On   steam   cars   25  to   75   cents  come    from    a    distance    or 

per   passenger.  are  going  beyond  the  bridge 

it  costs  nothing  to  cross  It 

either  in  the  L  cars  or  the 

Street    car    fare    10    cents,     5  surface    cars— the    ordinary 

cents   for   bridge.  car     fare     takes     you     over 

without  extra  charge. 

Foot  passengers   5  cents.  Foot   passengers    Free. 

Vehicles,  one  horse..  25  cents.  Vehicles,  one  horse...  5  cents. 
Vehicles,  two  horse. .  35  cents.  Vehicles,  two  horses  .  .10  cents. 
Bicycles 10  cents.  Bicycles    Free. 

Before  the  recent  lease  giving  the  companies  the  use  of  the  Brook- 
lyn Bridge  the  public  operation  realized  more  than  enough  to  pay 
expenses  and  interest,  on  a  2^^  cent  fare,  etc.  (as  above),  paying 
the  car  men  $2.75  for  an  8  hour  day.  The  elevated  railway  compa- 
nies running  over  the  bridge  pay  the  car-men  an  average  of  $2  for 
ten  hours,  and  some  of  the  men  receive  less  and  work  longer,  so 
I  am  told  by  the  men  themselves.  On  the  electrics  running  over  the 
St.  Louis  bridge  the  men  work  12  hours,  for  which  the  conductors 
get  $2.25  and  the  motormen  $2. 

Under  the  lease  the  elevated  roads  pay  about  $100,000  a  year  for 
the  use  of  the  bridge,  and  the  trolleys  5  cents  a  car,  a  fraction  of 
a  cent  per  passenger.  The  franchise  charges  were  made  very  small 
in  order  to  arrange  matters  so  that  no  extra  fare  for  crossing  the 
bridge  would  be  collected  from  those  paying  the  ordinary  5  cent 
car  fare,  thus  making  the  bridge  free  for  passengers  coming  from 
or  going  to  a  distance,  and  more  than  free  to  those  who  simply 
cross  it  in  the  bridge  cars,  since  a  ride  in  the  cars  anj^where  else 
for  any  distance,  no  matter  how  short,  costs  a  nickel  instead  of 
the  214  cent  bridge  rate — nothing  for  the  bridge  and  half  price  for 
the  car  ride.  The  arrangement  is  good  for  the  people  and  good 
for  the  companies,  as  it  increases  thedr  traffic.  It  could  only  be 
improved  by  larger  payment  from  the  companies,  or  lower  fares 
in  general,  or,  best  of  all,  public  ownership  of  the  street  railways 
as  well  as  the  bridge. 

The  net  earnings  of  the  St.  Louis  bridge  are  ly^  millions  a  year, 
or  25  per  cent,  on  the  Gould  investment,  and  12  per  cent,  on  the  ira- 
pairable  capital  (the  excavating  of  the  tunnels,  etc.,  will  never 
have  to  be  done  over  again).  The  St.  Louis  charges  may  be  ob- 
jected to,  not  only  as  extortionate,  but  as  discriminating.  A  pas- 
■enger  who  buys  a  ticket  in  New  York  or  Philadelphia  to  St.  Louis 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  1  1  7 

or  beyond  has  to  pay  75  cents  for  crossing-  the  bridge,  whereas  if 
he  buys  a  ticket  to  East  St.  Louis  and  then  crosses  the  bridge  in 
a  railroad  train  it  will  cost  him  only  25  cents,  or  10  cents  if  he 
crosses  on  a  street  car. 

The  St.  Louis  bridge  is  managed  for  private  profit;  the  Brooklyn 
Bridg-e  is  managed  for  public  service,  the  aim  being  to  make  the 
bridge  as  useful  to  the  people  as  possible. 

Telegraph  and  Telephone. — When  England  bought  out  the  private 
telegraph  companies,  in  1870,  and  made  the  telegraph  part  of  the 
postal  service,  she  reduced  the  rates  one-third  to  one-half.^  Our 
own  government  has  had  an  experience  with  the  telephone  which 
is  even  more  emphatic  tho  on  a  smaller  scale.  In  1894  the  De- 
partment of  the  Interior  paid  the  Bell  company  in  Washing-ton 
$60  to  $125  each  for  65  telephones,  and  employed  a  lady  to  attend 
the  main  exchange  at  $600  a  year,  making  the  total  cost  average 
$75  per  phone  per  year.  In  1895  the  Department  put  in  its  own 
phones,  and  the  cost  of  operation  and  repairs  is  only  $6.43  per 
phone,  with  $3.80  for  interest  and  depreciation,  making  a  total  of 
$10.25  per  phone  year  for  what  used  to  cost  $75  under  the  Bell 
regime — the  cost  under  private  ownership  being  7  fold  more  than 
under  public  ownership.^ 

The  ordinary  Bell  rates  for  towns  are  $24  to  $36  for  residences 
and  $48  to  $75  for  business  places.  For  large  cities  the  usual  rates 
are  $90  to  $240.  With  municipal  ownership  or  co-operative  asso- 
ciation we  could  have  excellent  telephone  service  at  less  than  half 
these  rates— 50  cents  to  $2  a  month  for  small  exchanges  in  towns 
and  country  districts,  and  $2.50  to  $5  in  large  cities.^ 

Trondhjem,  the  third  city  of  Norway,  with  30,000  people,  has  a 

municipal  system  with  the  following  rates: 

Per  year. 

For  a  business  place  within  lYz  km.  (about  one  mile)  of  cen- 
tral station $16.65 

For  a  second  business  connection  by  the  same  person  or  firm  13.31 

For  a  private  house,  same  distance 8.33 

For  each  100  meters  beyond  li/g  km 1.37 

The  town  builds  all  lines,  supplies  the  instruments  and  maintains 
the  sj-stem.    With  780  exchange  lines  the  average  rental  was  $13.25 


^The  Telegraph  Monopoly,  Arena,  Vol.  17,  pp.  9-29. 

*See  p.  350  of  Municipal  Monopolies  for  a  complete  statement  of  the 
facts  as  given  to  me  direct  from  the  books  of  the  Department.  In  the  same 
chapter  many  facts  are  collated  relating  to  the  low  cost  of  public  or  co- 
operative telephone  service. 

»  Contrary  to  the  ordinary  rule  of  cost,  the  telephone  service  becomes 
more  costly  sis  it  increases  in  density,  a  fact  that  is  due  to  the  complexity 
of  large  exchanges  and  the  great  increase  in  the  number  of  calls  per  phone 
where  each  subscriber  may  communicate  with  any  one  of  many  thousands. 
Instead  of  being  limited  to  a  few  hundreds,  or  a  few  dozens.  Even  in  Chi- 
cago or  New  York,  however,  responsible  capitalists  have  offered  to  estab- 
lish exchanges  at  .?30  to  $50  for  residence  and  $75  to  $10<)  for  business 
phones.  And  with  numicipal  ownership  or  co-operative  association,  eliminat- 
ing private  profit,  considerably  lower  rates  could  be  made.  The  cost  of 
construction  is  $40  to  .$70  per  subscriber  in  towns,  and  $75  to  $200  in  large 
cities.  The  yearly  operating  cost  is  $8  to  $12  per  subscriber  in  small  ex- 
changes. 


118  THE  CITV  FOR  THE  PEOPLE. 

a  year.  Operatingf  expenses,  $8  per  phone;  fixed  charges  (414  per 
cent,  interest  and  5  per  cent  depreciation),  $4.35;  total  cost,  $12.35. 
The  subscribers  speak  to  surrounding  towns  (there  are  11  of  them) 
within  50  miles  at  the  rate  of  4  cents  for  5  minutes.  The  non-sub- 
scribing public  pays  6l^  cents  per  conversation  interurban,  and 
2V2  cents  for  a  local  conversation.  Each  subscriber  makes  an 
average  of  8  or  9  calls  a  day,  so  that  the  cost  of  a  local  conversation 
to  a  subscriber  is  about  %  a  cent.  The  Trondhjem  telephone  re- 
ceipts afford  a  surplus,  after  covering  all  working  expenses,  interest 
on  the  capital  invested,  a  reserve  of  5  per  cent,  a  year  on  the  capi- 
tal, and  insurance  of  employees  against  death,  accident  and  sick- 
ness. 

Stockholm,  Sweden,  with  290,000  population,  has  a  public  ex- 
change with  a  $14  entrance  fee,  $16.66  per  year  for  residence  phone 
and  $22i/i  for  a  business  place — an  average  rate  of  $20  per  sub- 
scriber, with  metallic  circuit,  underground  wires,  interurban  com- 
munication free  within  a  radius  of  43  miles,  telephoning  telegrams 
and  telephoning  messages  to  be  w^ritten  down  and  delivered  by 
messenger  at  low  cost.  The  Bell  Company,  bought  out  by  the  gov- 
ernment, was  charging  $44  for  far  inferior  sei^ice.  The  public 
telephone  of  Luxembourg,  44  by  30  miles,  makes  a  uniform  yearly 
charge  of  $16,  and  each  subscriber  has  the  free  use  of  all  inter- 
urban wires,  and  can  talk  all  over  the  Duchy.  Besides  the  special 
services  just  mentioned,  the  subscribers  can  telephone  a  letter  (that 
is,  he  can  telephone  matter  to  be  Avritten  down  and  posted  as  a 
letter)  for  2  cents  plus  postage.  Switzerland  also  has  an  excellent 
system,  metallic  circuit,  at  a  moderate  charge,  $8  plus  1  cent  for 
each  call,  the  average  total  rate  being  $15  per  subscriber  in  Zurich 
and  other  cities. 

In  France,  when  the  government  took  possession  of  the  telephone 
lines  in  1889,  the  rates  were  at  once  reduced  so  that  a  comparison 
shows  the  charges  of  the  private  companies  to  have  been  50  per 
cent,  more  than  the  public  rates  in  Paris,  and  100  per  cent,  more 
in  other  cities,  except  in  Lyons. 

In  Sweden  there  are  over  160  co-operative  telephone  exchanges, 
and  others  are  dotted  over  Norway  and  Finland.  The  annual  as- 
sessments in  these  co-operative  exchanges  for  working  and  main- 
tenance are  frequently  as  low  as  $6  to  $8,  rising  in  a  few  places 
to  $16,  and  averaging  about  $10  a  year  for  the  whole  list  of  towns 
from  which  I  have  been  able  to  get  returns.  The  public  and  co- 
operative exchanges  have  brought  out  the  facts  about  the  business 
so  that  even  the  local  private  companies,  in  some  parts  of  Europe, 
give  the  people  very  low  rates. 

In  this  country  there  are  a  few  co-operative  plants  which  show 
what  can  be  do.ne  by  the  elimination  of  private  profit  and  monopoly 
methods.-  In  Fort  Scott,  Kansas,  the  members  of  the  Mutual  Com- 
pany pay  $1  a  month.  The  operating  expenses  are  $12  per  phone, 
and  the  construction  cost  $50  per  line.  Any  person  can  be  a  mem- 
ber who  will  take  a  share  of  stock.  The  railroads,  express  com- 
panies, etc.,  would   not  become  members,  but  were  willing  to  jiay 


PUBLIC   OWNERSHIP  OF   PUBLIC  UTILITIES.  J  19 

a  good  rental,  so  the  company  has  a  number  of  subscribers  on  ren- 
tals above  $1. 

At  Grand  Rapids,  Wisconsin,  the  Bell  Company  was  charging 
$36  for  residence  and  $48  for  business  places,  and  refused  to  lower 
the  rates.  A  co-operative  company  was  formed,  each  member 
taking  one  and  only  one  $50  share  of  stock.  And  In  the  company's 
second  year  (1897-8)  with  186  lines  (costing  $50  each  for  the  total 
construction  and  equipment  account),  the  expense  to  members  was 
50  cents  a  month  for  residence  and  $1.75  for  business.*  The  first 
president  of  the  company,  Mr.  John  A.  Gaynor,  writes  me  that  the 
cost  to  subscribers  has  now  been  reduced  to  25  cents  a  month  for 
residence  and  $1.50  for  business  places.  There  are  now  220  phones 
in  the  exchange.  The  total  investment  per  phone  is  $43.  The  ope- 
rating cost  is  about  $9  per  phone,  including  a  repair  allowance  suflfi- 
cient,  Air.  Gaynor  says,  to  cover  depreciation.  Interest  would  add 
$3  per  phone  year  at  the  rate  (7  per  cent.)  paid  by  private  bor- 
rowers in  Grand  Eapids."  If  all  those  having  telephones  were  mem- 
bers of  the  company  the  rates  would  probably  be  about  $6  house 
and"  $18  business,  or  $8  and  $18,  perhaps,  if  the  co-operators  wished 
to  pay  in  5  per  cent,  on  the  investment  as  a  surplus  or  improvement 
fund.  Under  public  ownership,  free  of  debt,  $6  and  $18  would  cover 
the  total  cost  according  to  the  data  sent  me  by  Mr.  Gaynor. 

When  the  co-operative  exchange  was  organized  the  Bell  folks 
lost  their  subscribers,  but  in  1897  began  to  ask  the  privilege  of  put^ 
ting  in  free  phones.  They  wanted  to  get  a  big  exchange,  which 
would  be  so  valuable  to  business  men  that  they  would  have  to  leave 
the  home  company.  When  the  people  saw  that  the  Bell  was 
scheming  to  kill  the  co-operative,  they  unanimously  ordered  out 
the  free  phones.* 

Water. — We  have  become  so  accustomed  to  the  idea  that  the  water 
supplj'  is  naturallj'  a  public  affair,  that  many  overlook  the  fact  that 
in  the  early  part  of  the  century  the  movement  for  public  water 
works  was  as  much  a  matter  of  opposition  and  criticism   as  the 


*  There  were  100  members  and  86  renters  all  paying  $1.50  to  $2.50  per 
month.  A  monthly  dividend  of  1%  per  cent,  on  the  stock  brought  the  cost 
to  members  down  to  the  figures  stated  in  the  text.  The  surplus  earnings 
in  28  months  were  $3,000  which,  with  the  $5,000  from  sales  of  stock,  paid 
for  the  plant,  except  $1,000. 

'  The  present  rates  are  $1  residence  and  $2.25  business,  with  1^  per  cent, 
monthly  dividends  to  stockholders.  Mr.  Gaynor  thinks  residence  rates  will 
not  go  any  lower,  but  says  that  the  company  has  $100  a  month  surplus, 
which  should  be  used  in  lowering  business  rates.  He  advocates  putting  the 
business  rate  at  $1.50  and  the  dividends  at  1  per  cent,  per  month. 

'Some  local  private  companies,  independent  of  the  Bell,  give  very  rea- 
sonable rates.  There  is  one  in  Elyria,  Ohio,  that  reports  a  construction  cost 
of  $40  a  phone  and  12  per  cent,  profit  on  monthly  rates  of  $1  residence  and 
$2  business.  One  in  Elkhart,  Indiana,  reports  a  construction  cost  of  $60  per 
subscriber,  operating  expenses  of  $10  per  phone  per  year,  and  16  per  cent, 
profit  with  aOO  phones  at  $1..50  and  $2  a  mouth.  One  in  Manhattan,  Kansas, 
has  a  construction  cost  of  $45  per  line,  $9  operating  expenses  and  12  per  cent, 
profit,  with  $1  a  month  each  for  170  house  lines,  and  $2  a  month  each  for 
50  business  phonos.  A  small  local  company  is  a  very  different  matter  from  a 
big  monopoly  that  can  fight  to  the  death  in  one  city,  while  it  draws  its 
support  from  other  cities.  The  reasonable  rates  are  found  in  places  so 
small  that  Bell  interests  have  not  cared  to  monopolize  them,  or  where  there 
is  civic  patriotism  and  common  sense  enough  not  to  remain  in  subjection 
to  the  great  monopoly. 


120 


TlIK  C'lTV  FOR  THE  PEOPLE. 


movement  for  piiblic  street  cars  is  now,  and  the  history  of  the  water 
service,  with  its  powerful  testimony  for  public  ownership,  is  too 
much  neglected.  The  very  fact  that  public  water  supply  has  come 
to  be  looked  at  as  the  natural  order  of  things,  is  in  itself  strong  evi- 
dence that  the  public  service  has  proved  its  case.  But  a  few  of  the 
vast  mass  of  specific  proofs  have  a  right  to  a  place  in  this  investi- 
gation. 

In  Schenectadj-,  New  York,  just  before  the  water  system  became 
public,  the  family  rate  was  $9;  public  ownership  reduced  the  rate 
to  $7,  and  still  there  was  a  good  profit.  In  Auburn,  New  York, 
the  family  rate  was  reduced  from  $8  to  $6  when  the  city  bought  the 
plant  in  1894;  but  the  consumption  increased  and  the  operating  ex- 
penses decreased  to  such  an  extent  that  the  profits  were  larger  than 
ever.  In  Syracuse  the  family  rate  was  $10  under  private  ownership. 
Public  ownership  reduced  it  to  $5.  The  meter  rates  have  also  been 
reduced.  The  reduction  of  rates  by  the  public  works  saved  the 
citizens  $100,000  last  year,  according  to  the  estimate  of  the  Chief 
Engineer.  We  have  seen  that  Eandolph  secured  a  $4  rate  thru 
a  public  plant  where  private  enterprise  demanded  a  $10  rate.'  For 
the  public  water  works  of  Indiana  the  cost  per  family  is  found  to 
be  less  than  half  the  revenue  per  family  received  by  the  private 
works. 

In  1890  Mr.  M.  N.  Baker  collated  the  rates  in  318  public  and  430 
private  water  works  in  everj^  part  of  the  United  States.  The  re- 
sults speak  for  themselves.  The  ordinary  family  rate  is  the  first 
charge,  the  price  of  admission  of  water  to  the  premises.  The 
total  family  rental  is  the  ordinary  first  charge,  plus  the  rates  for 
water  closet,  bath  tub,  horse  and  carriage,  garden  hose,  etc. 


Charges  for  Water. 


Maine | 

Massachusetts...  -j 

Bhode  island -j 

Connecticut | 

Kew  York < 

Pennsylvania....  I 

Virginia -f 

est  Virginia..  •! 

Georgia | 

Texas j 

Oregon -j 

Nova  Scotia j 


Public  works  . 
Private  works 
Public  works  . 
Private  works 
Publie  works  . 
Private  works 
Public  w  rks... 
Private  works 
Public  works... 
Private  works. 
Public  works  . 
I'rivate  works. 
Public  works.. 
Private  works, 
Public  works.. 
Private  works, 
Public  works.. 
Private  works. 
Public  works.. 
Private  works. 
Public  works.. 
Private  works 
Public  works.. 
Private  works. 


Ordinary 
Family  Rate 

'lotal  Family 
Rentals 

Cost  of  Works 
per  Family 

5 
7.8 

13.6 
26.73 

119.9 
181.3 

6.07 
7.1» 

24  74 
31.16 

107  04 
101.42 

55 
8.0 

28.85 

38. 

223 
193 

5.1 
6.05 

18.66 
25.87 

98.82 
87.5.S 

6.01 
7.53 

19.43 
29.18 

112.33 
lli4..V2 

6.75 
7.66 

2145 
21.63 

85.8 
106.3 

6. 

8.5 

23.44 
26.43 

82.2 
82.1 

6 

8 

215 
29 

93 
79 

6.66 
10,68 

27 
34.75 

44.5 
57.5 

9.54 
16.43 

31.9 
49.41 

48.52 

70.74 

13. 
18.5 

37.2 
68.25 

72.<)7 
53.47 

55 
10.2 

15.75 
56.2 

81.98 
155. 

'See  section  1  for  this  and  other  facts  relevant  here. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  121 

I  have  made  some  calculations  as  to  the  effect  due  to  the  dif- 
ference in  the  cost  works  as  follows:  On  the  ratio  between  operat- 
ing expenses  and  fixed  charges  that  prevails  in  Nova  Scotia,  the 
extra  capital  in  the  private  works,  if  it  is  real  cost,  might  justify 
$12  addition  to  the  public  total  rental,  but  not  an  addition  of 
$40.  In  :Maine  an  average  of  the  statements  of  the  plants  reporting 
expenses  shows  fixed  charges,  interest,  depreciation  and  taxes  rang- 
ing from  %  to  6  times  the  operating  expenses,  and  averaging  4 
fold  the  operating  cost.  This  would  justify  an  addition  of  $5.5 
to  the  total  rentals  of  the  public  works  if  the  reported  cost  of 
works  for  the  private  companies  is  real  cost.  In  New  York  the  re- 
ported difference  in  cost  of  works  would  justify  an  addition  of 
about  $7  to  the  public  total  rentals.  It  is  not  safe,  however,  to  deal 
with  the  cost  of  works  as  stated  for  private  plants  except  as  a 
maximum.  The  companies  are  not  apt  to  understate  the  cost,  but 
they  are  very  apt  to  overstate  it.  In  Pennsylvania  the  difference 
of  construction  cost,  if  truly  stated,  would  about  equalize  the  rates, 
but  in  Massachusetts,  Ehode  Island,  Connecticut,  West  Virginia  and 
Oregon  the  difference  in  construction  cost  would  intensify  the  dif- 
erence  in  rates.  In  Oregon  the  total  rentals  were  $37  public  and 
$68  private,  or  about  60  per  cent,  more  for  private  rentals,  though 
the  public  works  cost  nearly  40  per  cent,  more  per  family  than  the 
private  works.  The  Oregon  reports  show  fixed  charges  averaging 
five  times  the  operating  cost,  so  that  the  average  private  company 
total  rental  would  be  $90  instead  of  $68  if  the  average  cost  of  the 
private  works  were  as  high  as  that  of  the  public  works  and  the 
companies  charged  on  the  higher  capital  in  proportion  to  their 
charges  on  the  present  capital.  With  this  equalization  of  capital 
charges  the  contrast  would  be  $37  total  rentals  for  public  works 
and  $90  total  for  the  private  works. 

In  Massachusetts  Mr.  Baker  found  the  total  water  rentals 
averaged  $24.74  for  the  public  works  and  $31.16  in  the  private  plants, 
altho  the  cost  of  the  works  was  less  per  family  in  the  private  plants 
than  in  the  public.  Taking  the  Northeast  and  Middle  States  to- 
gether the  total  rentals  average  30  per  cent  more  m  private  than 
in  public  plants,  and  the  investment  per  family  is  about  the  same. 
The  last  sentence  holds  true  substantially  "  for  the  entire  United 
States,  aside  from  the  Pacific  coast,  there  the  private  rentals 
average  71  per  cent,  more  than  the  public,  but  the  investment  is 
much  larger  in  the  private  than  in  the  public  plants,  tho  a  great 
part  of  the  excess  is  due  to  irrigation  works.  Excluding  these  and 
taking  the  United  istutes  as  a  whole,  the  investment  per  family  is  about 
the   same    in   public  as  in  private  water  works,  yet  the   total    rentals 


-In  the  United  States,  outside  of  the  Pacific  States,  the  private  works 
cost  3W,  per  cent,  less  per  familv  and  charge  31%  per  cent,  more  than  the 
pul'lic  works.  The  Svraeuse  Commissioners  in  1889  found  that  the  private 
worlds  in  129  towns  charged  .37.3  per  cent,  more  than  the  public  worlvs  in 
123  towns  investigated.  Census  Bulletin  100,  July,  1891.  finds  the  water 
charge  in  133  cities  owning  their  worics  as  $19.50,  against  $23.43  in  \\i 
cities  with  private  works. 


122 


THE  CITY  FOR  THE  PEOPLE. 


average  43  per  cent,  more  per  fa)7jilv  in  the  private  plants  than  in  the 
public' 

The  Water  Manual  of  1897  states  the  rates  for  1250  cities  and 
towns.  Mr.  Baker  has  not  analyzed  them,  but  an  assistant  has 
worked  up  a  few  states  for  me  with  the  following  results: 

Water  Bates.  1897  Manual. 


Ordinary  Family  Rate 

Total  Family  Rentals 

Private 

Public 

Private 

Public 

8 
17 

10 

27 
26% 

40 

23K 

Texas 

23 

25 

In  Washington  the  cost  of  works  per  family  is  a  trifle  more  for 
public  than  for  private  plants  ($167  to  $164).  In  Texas  the  reported 
costs  are  $102  public  and  $117  private.  If  the  lower  capital  were 
brought  up  to  the  higher  and  the  usual  ratio  between  operating 
expenses  and  fixed  charges  holds  good,  the  difference  w-ould  add 
about  $1.10  to  the  family  rate  and  $3  to  the  total  rental,  making 
the  real  contrasts  about  $15  private  to  $10  public  and  $40  private 
to  $26  public.  In  Illinois  the  cost  of  works  is  reported  to  be  $79 
per  family  in  public  works  and  $95  in  private  works,  making  the 
real  contrasts  $8  private  to  $6  1-3  public,  and  $26%  private  to  $18% 
public.  In  Massachusetts  the  cost  of  works  appears  to  be  $225  per 
family  in  public  works  and  $139  in  private  works,  making  the  real 
contrasts  $11  private  to  $5%  public,  and  $40  private  to  $231/2  public. 

It  must  be  remembered  that  the  contrast  of  rates  by  no  means 
expresses  the  full  difference  between  public  and  private  ownership 
of  water  works,  because  in  addition  to  the  rates  charged  consum- 
ers the  private  companies  receive  hydrant  rentals  and  fees  for  street 
service,  etc.,  from  the  city  treasury,  while  public  plants,  as  a  rule, 
collect  nothing  from  the  city  for  fire  protection,  street  watering 
and  sewer  flushing,  but  render  these  services  free,  and  often  pay 
in  a  profit  besides  to  the  public  funds.  The  full  contrast  would  be 
shown  by  comparing  the  total  revenue  per  family  in  private  plants 
with  the  total  cost  per  family  in  public  plants  (including  lost 
taxes,  depreciation  and  interest  actually  paid),  the  conditions  as 
to  population,  cost  of  works,  supply,  etc.,  being  ascertained,  so  that 


'  "We  find  the  average  total  familv  rate  for  318  public  works  $21.55  and 
for  430  private  works  $30.82."  (Baker's  Manual  of  American  Water  Works, 
1890,  p  xlix.)  Mr.  Baker  further  says:  "/«  every  state  and  tcrrilom  of  the 
Union  and  in  every  province  of  Canada,  private  works  shoic  a  Mohrr  lotal 
family  rate  than  public."  On  p.  Hi,  he  says  in  substance,  "The  raising  of 
money  by  taxation  to  pay  interest  on  the  bonds  of  the  public  plants  does 
not  account  for  the  lower  rates  charged  by  public  works,  such  taxation  be- 
ing offpf  t  by  the  liydrant  rental,  which  is  almost  invariably  paid  10  private 
companies,  and  the  money  for  which  is  always  raised  by  "taxation.  Again, 
he  sjiys  (same  page),  ••There  is  but  one  conclusion.  Private  tcorhs  chary  as 
hiiih  rates  as  thiy  can  in  consistency  with  business  principles." 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES. 


123 


plants  operating-  under  similar  conditions  may  be  compared  or 
due  allowance  made  for  difference  of  condition  where  level  com- 
parison is  not  possible.  The  idea  should  be  to  eliminate  the  effect 
of  other  differences  in  order  to  determine  the  effect  of  difference 
in  ownership. 

I  asked  an  assistant  to  take  the  states  of  Pennsylvania  and  Illi- 
nois, find  the  revenue  per  family  in  private  works  and  the  cost  per 
family  for  public  works  (including  operation,  \^^th  depreciation 
and  taxes),  so  far  as  the  Water  Manual  and  the  population  tables 
supply  the  needful  data,  and  put  in  opposite  columns  places  re- 
sembling each  other,  so  far  as  possible,  in  population,  consump- 
tion and  cost  of  works.  The  accompanying  table  shows  the  results, 
with  the  addition  of  a  contrast  I  met  with  in  Maine.  The  operating 
expenses  under  complete  public  ownership  usually  run  from  one- 
half  to  three-fourths  of  the  total  cost.  Depreciation  and  taxes  are 
estimated  at  2  per  cent,  on  the  entire  cost  of  the  works.  There  is 
no  interest  when  public  ownership  is  complete.  But  to  illustrate 
the  difference  that  is  made  by  debt  or  incomplete  ownership  we 
may  note  that  interest  adds  $2i/o  per  family  in  Bethlehem,  $4  in 
Media,  $2  in  Doylestown,  $3  in  Hollidaysburg,  $2  in  Shippensburg, 
etc.  In  Moline  interest  adds  $1  per  family,  $1.71  in  Taylorsville, 
$1  in  Savanna,  $2  in  Aurora,  $1  in  Evanston,  etc.,  an  average  of 
$1.33  per  family  actiMl  interest  for  all  the  Illinois  public  plants  in 
the  table,  or  $2.50  per  family  if  interest  be  estimated  at  4  per  cent, 
on  the  total  cost  of  the  works.  The  figures  in  parenthesis  at  the 
right  and  left  indicate  the  ordinary  family  rate  or  initial  charge. 
It  wiE  be  noted  that  the  difference  between  the  total  revenue  per 
family  in  private  works  and  the  total  cost  per  family  in  public 
works  is  often  much  greater  than  thp  difference  in  the  initial  family 
charges.  This  is  due  to  the  saving  by  public  works  of  what  goes 
to  private  companies  for  fire  protection,  street  sprinkling,  etc.,  and 
lor  profits  on  commercial  service. 


Private  Watf.r  Supply. 

Total  Revenne 
per  Kaniily 
jier  Year 

Uoder  Private 
OvneMhip, 

Total  Cost  per 

Family  per 

Year  Under 

Complete  Pub- 

Uo  Ownership. 

Public  Water  Supply. 

(13)    Franklin             Pa        

14 
12 
13 

l4 

28k 
25 
8^ 
18>| 
1214 
18 
111 

8.7 
7.9 
9.8 

10% 
20 

19 

?4 

4 
3 
3 
2 
6 
5 
2 
4 
3 
2.8 

1^ 

3 
3 

4Vi 
6.4 

;     5>^ 

'     5 

Bethlehem  (7J^, 

Media, 

Doylestown, 

Hollidaysburg  (5), 

Shippensburg, 

East  Greenville  (5), 

Beaver, 

Roaring  Spring, 

Bradford  (4%), 

(16)    McDonald,            "   ".."... 

...„ North  East  (5>^, 

East  Stroudsburg,    . 

(7J^)  Lincoln    *             111  ' 

Moline  (6%) 

Tavlorsville, 

(8)      Effingham,            "   

Savanna, 

Lexington  (6), 

(8)      Sterling  &  E  F    " 

Elgin  (6), 

La  Salle, 

(fii^)  Chillicothe            " 

Evanston, 

(8)      Cairo           '           " 

Rock  Island  (8), 

(10)    Oak  Park              " 

Aurora  (4), 

Lewiston, 

Pa. 


111. 


Me 


124  THE  CITY  FOR  THE  PEOPLE. 

In  most  of  the  larger  places  and  many  of  the  smaller  places 
having-  private  w^orks,  the  companies  withhold  a  part  or  the  whole 
of  their  revenue  data.  This  greatly  limits  the  number  of  possible 
comparisons.  For  example,  Springfield,  Illlinois,  has  public  works 
serving  the  people  at  a  cost  of  $5  per  family.  The  places  having 
private  works  that  would  naturally  be  compared  with  Springfield 
on  the  basis  of  population,  etc.,  are  Peoria  and  Quincy.  Both  have 
higher  initial  rates  and  much  smaller  consumption  than  Spring- 
field, but  the  revenue  statement  is  incomplete.  The  Peoria  company 
states  only  the  commercial  receipts,  and  the  Quincy  company  only 
the  revenue  from  the  city  treasury. 

These  columns  by  no  means  represent  the  extremes.  In  some 
Pennsylvania  towns,  where  the  consumption  is  very  large,  owing 
probablj'  to  mining  use,  the  revenue  per  family  rises  to  $40  or  more, 
while  in  several  Illinois  towns  having  public  works  the  cost  per 
family  is  below  $1.50.  For  example,  Hillsboro  has  an  average  daily 
consumption  of  125  gallons  per  family,  and  a  yearly  cost  of  $1.47 
per  family,  including  depreciation  and  taxes,  with  $1.20  for  actual 
interest  (which  is  about  4  per  cent,  on  the  cost  of  the  works),  a 
total  of  $2.67,  interest  and  all. 

The  consumption  in  Oak  Park  is  not  given.  That  of  Alton  is 
400  gallons,  against  250  in  Lexington.  In  all  the  other  Illinois 
comj  arisons  the  consumption  per  family  is  greater  with  the  public 
than  with  the  private  work^.  The  cost  of  the  works  reported  by 
the  private  companies  is  generally  somewhat  larger  than  the  cost 
of  public  works,  whether  it  is  really  larger  is  in  doubt.  In  some 
cases  the  cost  of  works  is  much  larger  than  with  the  opposite  pri- 
vate works,  even  accepting  the  capitalization  of  the  private  com- 
panies— Bethlehem,  Shippensburg  and  Bradford  for  example. 

Brookline,  Massachusetts,  has  a  public  water  system,  while  Hyde 
Park,  with  about  the  same  population,  has  a  private  plant.  In 
Brookline  the  family  rate  is  $3  and  the  total  family  rental  amounts 
to  $201/0.  In  Hyde  Park  the  family  rate  is  $6  and  the  total  family 
rental  $30.  In  Milford  and  Hopedale,  having  also  nearly  the  same 
population  as  Brookline,  the  private  company  charges  $8  for  the 
ordinary  family  rate  and  $33  for  the -total  family  rental.  Yet  the 
cost  of  the  works  per  family  and  per  thousand  gallons  of  output 
is  veiy  much  greater  in  Brookline  than  in  the  other  cases.  Never- 
theless the  Brookline  receipts  are  three  times  the  operating  ex- 
penses, and  yield  a  profit  of  about  3  per  cent,  on  the  value  of  the 
plant,  after  allowing  for  depreciation,  besides  supplying  public 
buildings,  streets,  fire  protection,  etc.,  free.* 


Both  Brookline  and  Hyde  Park  are  supplied  by  driven  wells  and  pump- 
'^S-     -lue  Milford  Company  lias  wells  and  river  and  pumps. 

There  are  other  public  plants  with  still  lower  rates  than  those  of  Brook- 
line. I'or  example.  New  Bedford,  with  $2.50  ordinary  charge  and  $12.50 
total  family  rental,  and  Holyoke.  with  $4  ordinary  and  .?13  total.  These 
places,  however,  have  W  times  the  population  of  Brookline.  Holyoke  I3 
helped  out  by  jrravity.  The  New  Bedford  revenue  from  consumers  is  2V2 
times  the  operating  cost  and  sufficient  to  cover  operating  expenses,  deprecia- 
tion and  interest  actually  paid,  amounting  to  about  '2  per  cent,  of  the  cost 
of  the  works.  With  what  the  city  pays  for  street  service,  etc.,  the  plant 
yields  a  profit  of  3  per  cent,  on  its  value,  above  the  cost  of  ooeration  and 
'"nreclation. 


PUBLIC   OWNERSHIP   OF   PUBLIC   UTILITIES.  125 

111  the  winter  of  1892  a  statement  was  made  by  Henry  R.  Legate, 
of  the  Xew  A'aiJo/t,  before  a  legislative  committee  at  the  State  House 
in  Boston,  to  the  effect  that  a  committee  of  the  London  County 
Council  had  made  a  thoro  investigation  of  the  subject  of  municipal 
water  supply,  and  in  their  report  of  October,  1S90,  stated,  among 
other  things,  that  the  average  dailj'  water  supply  of  Glasgow,  Scot- 
land, was  49.84  gallons  for  each  person,  while  in  London  it  was 
but  29.91  gallons;  yet  the  rate  in  Glasgow  for  a  house  of  the 
rental  value  of  $250  was  $7.25,  and  in  London 'for  a  house  of  the 
same  rental  value  it  was  $19.18,  or  21/3  times  as  much  for  2/5  less 
water.  And  in  Glasgow  one  charge  pays  for  bathroom  and  other 
items,  while  in  London  extra  charge  is  made  for  all  these  conve- 
niences. The  committee  recommended  that  the  city  buy  the  works, 
though  the  cost  was  estimated  at  $167,500,000. 

Gas. — In  1890  the  private  gas  company  in  Hamilton,  Ohio,  was 
charging  $2  per  thousand  for  gas  of  poor  quality  and  refused  re- 
duction, protesting  that  it  could  not  sell  for  less.  It  also  refused  to 
sell  out  at  a  reasonable  figure,  and  declined  to  arbitrate.  So  the  city 
built  works  of  its  own,  charged  $1  a  thousand  for  good  gas  and 
made  a  profit.  When  the  city  took  possession  of  the  gas  works  in 
Charlottesville,  Virginia,  in  1876,  the  rate  was  reduced  at  once  from 
$3.50  to  $3,  then  to  $2.25  in  1886,  $1.50  in  1887,  and  now  the  rate  is 
$1,  and  the  total  cost  to  the  people  is  83  cents  per  thousand.  Dan- 
ville, Virginia,  reduced  the  rate  under  municipal  management  from 
$4  to  $1.50  in  1890,  and  the  present  total  cost  to  the  people  is  88 
cents.  When  Wheeling  took  the  gas  works,  in  1870,  the  private 
rate  was  $3.50.  A  large  reduction  was  made  at  once,  and  now  the 
rate  is  75  cents,  with  a  total  cost  varying  somewhat  from  year  to 
year,  but  averaging  about  54  cents  for  the  years  whose  figures  are 
at  hand.  Henderson,  Kentucky,  reduced  from  $1.50  to  $1.25  in  1891, 
and  now  charges  $1.  In  Indianapolis  a  few  years  ago  a  citizens'  co- 
operative association  secured  gas  at  less  than  half  the  charge  made 
by  the  Standard  Oil  gas  interest  in  Toledo  or  in  Dayton  ($54.8  an- 
nual rate  in  Dayton  against  $26.8  in  Indianapolis).  Toledo  put 
in  a  municipal  plant,  and  in  spite  of  all  difficulties,  the  million  of 
extra  cost  due  to  the  Standard  Oil  war  upon  the  city  and  the  grad- 
ual failure  of  the  natural  gas  wells,  the  plant  has  saved  the  people 
far  more  than  its  cost  bj'  its  own  service  at  low  rates  and  by  bring- 
ing down  and  keeping  down  the  Standard  rates.' 

The  municipal  plant  in  Richmond  delivers  gas  at  the  burner  at 
an  operating  cost  of  57  cents  a  thousand.  Taxes  and  depreciation 
bring  the  cost  up  to  70  cents.'  The  private  ^as  c?)mpany  of  Wash- 
ington, D.  C,  better  situated  than  the  public  works  of  Richmond, 


=  Lloyd,  p.  360. 

«  Interest  on  the  value  of  the  plant  would  bring  the  total  up  to  82  cents. 
But  there  is  no  need  to  add  interest,  since  the  plant  paid  for  itself  long  ago 
A  private  company  must  add  interest,  but  a  plant  completey  public— owned 
bv  the  citv,  clear  of  debt,  has  no  Interest.  The  people  of  Richmond  are 
getting  gas"  at  a  total  real  cost  of  70  cents,  while  Washington  pays  $i-lO  V 
«1.3o.  The  people  of  Washington  could  get  their  gas  at  lower  cost  than 
Richmond  if  they  had  municipal  gas  works. 


]  26  THE  CITY  FOR  THE  PEOPLE. 

refused  to  come  lower  than  $1.25  till  1896,  when  Congress  forced  a 
reduction  to  $1.10.  In  the  large  suburb  of  Georgetown  the  price 
is  still  $1.35,  about  half  of  which  probably  is  profit  in  the  neigh- 
borhood of  20  per  cent,  a  year  on  the  investment. 

From  Brown's  Gas  Directory  for  1891  and  Professor  Bemis'  studies 
of  municipal  plants  in  the  same  year  ("Municipal  Ownership  of  Gas 
in  the  United  States")  it  appears  that  there  were  eight  private 
gas  companies  in  Virginia  and  four  municipal  plants.  All  but  two 
of  the  private  companies  charged  from  $2  to  $3,  and  the  average 
for  the  eight  companies  was  $2.11.  Three  of  the  public  works 
charged  $1.50  and  one  of  them  $1.44,  and  the  average  cost  ^  to  the 
people,  operating  expenses  and  all  fixed  charges  icas  $1.17.  In  West 
Virginia  there  were  five  private  companies  and  one  municipal  plant. 
One  of  the  private  companies  charged  $1,  another  $1.60,  and  the 
other  three  $2  to  $2.25.  The  public  works  in  Wheeling  charged  75 
cents  per  thousand,  and  the  total  cost  to  the  people  was  50  cents, 
there  being  no  debt  and  no  interest  to  pay,  operating  cost,  depre- 
ciation and  taxes  were  the  whole  expense.  The  public  works  in 
Philadelphia  charged  $1.50,  but  60  cents  of  it  was  clear  profit  in 
the  city  treasury  above  the  cost  of  operation  and  fixed  charges,  so 
the  people  really  got  their  gas  for  less  than  $1.  Of  the  89privatecom- 
panies  in  Pa.,  26  charged  $2  and  oVer,  55  chai-ged  over  $1.50,  S 
charged  $1.50,  and  only  8  made  a  rate  as  low  as  $1,  and  they  were 
all  located  where  coal  was  much  cheaper  than  in  Philadelphia. 
During  the  whole  history  of  public  operation  in  Philadelphia  the 
cost  of  gas  to  the  people  was  much  lower  than  in  Baltimore,  Wash- 
ington or  New  York.  In  Kentucky  none  of  the  18  private  com- 
panies sold  as  low  as  the  public  works  in  Henderson.  In  Ohio 
there  were  two  public  plants.  The  works  in  Hamilton  supplied  gas 
at  a  total  cost  of  $1  (30  cents  of  it  being  interest),  and  the  works 
in  Bellefontaine  (free  of  debt)  supplied  gas  at  a  total  cost  of  63 
cents  per  thousand.  Of  the  43  private  companies  only  5  made  so 
so  low  a  rate  as  $1.  The  rival  company  in  Hamilton  was  forced 
down  by  public  competition.  In  Cleveland  certainly,  and  in  the 
other  $1  cities  probably,  the  charge  had  been  forced  down  by  the 
power  of  the  City  Councils,  under  the  Ohio  law  respecting  city  regu- 
lation of  prices. 

It  appears,  therefore,  that  every  one  of  the  public  gas  works  made 
a  splendid  record  as  compared  with  the  private  plants  in  its  own 
localitj'. 

The  present  cost  of  gas  in  public  works  is  shown  in  the  follow- 
ing table:  • 


'  Professor  Bemis,  Including  the  cost  of  permanent  improvements  and 
omitting  depreciation,  gives  figures  wliich  average  $1.31  for  the  four  Vir- 
ginia cities,  with  the  interest  actually  paid  in  1890.  It  seems  fairer,  how- 
ever, not  to  take  the  expense  of  improvements  in  place  of  depreciation, 
except  where  one  is  shown  to  be  the  substantial  equivalent  of  the  other, 
which  was  not  the  case  with  the  four  Virginia  cities  in  1890.  Estimating 
depreciation  at  214  per  cent,  of  the  Investment  and  taxes  at  1%  per  cent., 
the  average  total  cost  in  the  four  Virginia  cities  was  $1.17,  including  the 
Interest  actually  paid  by  Danville  and  Charlottesville,  the  Richmond  and 
Alexandria  plants  being  free  of  debt.  If  all  had  been  free  of  debt,  the  aver- 
age total  cost  would  have  been  $1.08.  ' 


PUBLIC  OWNEESHIP  OF  PUBLIC  UTILITIES.  127 

ABC 

Presea  Cost  of  Gas                                   °p^/?ho°afaaT  ^ otal  cost. 

in  burner  P"  '"""^aod  Selling  Prloe 

On  cCas^  ('^  '='■''"> 

Richmond,  Va 57  70*  $1  oo 

Charlottesville,  Va 65  83*  I'oo 

Danville,  Va 69  88* 

Alexandria.  Va 7rt  92*  133 

Wheeling,  W.  Va 45  56*  .75 

Hellefontaine,  Ohio 54  70*  [87  av. 

Hamilton,  Ohio 4.S  J^O  isO 

Henderson,  Ky 74  9fl*  l.iKi 

*  Column  B  represents  the  actual  cost  to  the  citizens,  operating 
expenses,  depreciation  and  taxes,  and  in  the  case  of  Hamilton  in- 
terest also  (26  cents  of  the  80) — all  the  other  plants  have  more  than 
paid  for  themselves  out  of  the  earnings  and  the  people  have  no  in- 
terest to  pay.  The  addition  of  interest  woiild  bring  the  cost  in 
Richmond  up  to  about  82  cents,  and  in  Wheeling  to  67  cents,  etc. 
Taxes  run  from  3  to  6  cents  per  thousand;  depreciation  7  to  12 
cents.  The  figures  of  column  B  are  above  the  truth  in  several  in- 
stances, perhaps  in  all,  because  the  superintendents  have  a  habit 
of  including  the  cost  of  improvements  and  extensions,  with  ope- 
rating expenses,  which  makes  the  first  column  really  include  an 
item  that  partly  or  wholly  offsets  depreciation  and  sometimes  more 
than  overbalances  it.  Wherefore  the  depreciation  added  to  column 
A  puts  some  of  the  figures  of  column  B  above  the  fact.  The  small 
size  of  most  of  the  places  and  the  consequent  small  output,  the  use 
of  coal  gas  and  the  high  price  of  coal  in  Virginia  puts  the  cost  of 
production  above  that  which  obtains  in  our  larger  Northern  cities. 

The  Philadelphia  works  are  leased  to  a  private  company.  The 
Toledo  plant  we  have  spoken  of.  Fi'edericksbtirg,  Virginia,  began 
with  public  gas  in  1891.  The  price  has  fallen  from  $3,  under  private 
ownership,  to  $1.50  under  public  management,  and  the  consumption 
has  more  than  doubled.  The  total  cost  to  the  citj%  including  in- 
terest, is  $1.33.  Duluth  has  recently  bought  the  gas  and  water 
plants.  The  charge  under  private  ownership  (1897)  was  $2  per 
thousand,  under  public  ownership  (1898)  it  is  $1.50,  and  $1  for  fuel 
gas.  In  Massachusetts,  Wakefleld  and  Middleborovgh  began  with 
public  gas  in  1894,  and  Uolyoke  and  Westfleld  have  recently  voted  to 
follow  their  example.  In  Wakefield,  before  public  ownership,  the 
charge  was  $2.19,  afterward  $1.75,  which  covers  all  expenses,  in- 
cluding interest,  in  spite  of  the  heavy  capitalization  ($11.37  per  M), 
due  to  the  fact  that  under  the  imperfect  laws  of  Massachusetts  the 
ciiy  was  forced  to  pay  the  private  company  for  its  works  more 
than  double  the  cost  of  duplication. 

In  England  the  public  works  sold  gas  for  82  cents  in  1889,  and 
made  a  profit  of  221/2  cents  above  interest  and  sinking  fund,  so  that 
the  real  cost  to  the  citizens  was  60  cents,  while  the  private  com- 
panies charged  90  cents.  In  1897  the  public  works  received  an 
average  of  75  cents  a  thousand,  including  18  1/3  cents  profit,  where- 
fore the  real  cost  was  not  over  56  cents,  while  the  private  compa- 
nies charged  an  average  of  86  cents.* 


'The  cost  in  the  holder  In  English  plants  of  large  ontpiit    Is    about    30 
cents,  and  distribution  6  to  7  cents  in  both  public  and  private  plants,  being 


128 


THE  CITY  FOR  THE  PEOPLE. 


A  few  contrasts.  Bring-ing  together  a  few  crisp  contrasts  from 
preceding  paragraphs  and  adding  some  new  ones  we  have  the  fol- 
lowing: 

A  Few  Crisp  Contrasts. 


Water  and  Gas  Charges 


Ordinary  family  cliarue  for  water: 

Syracuse,  N.  Y 

Auburn,  N.  Y .... 

Randolph,  N.  Y 

Average  in  Indiana 

Average  in  lilinoi.'i 

Avera><e  in  Massachusetts , 

Avfragfi  in  Texas 

ATen-ge  in  Washington  State.., 

Cost  of  gas  per  thousand: 

Hamilton,  Ohio 

Duluth 

Wakefield 

I'l-ederickburg 

Washington  (pnv.) 

Pittsburg  (priv.) 

Average  in  Virginia  for  '91 

Average  in  W.  Virginia  for  '91. 


Under  Private 
Ownership 


$10 
8 
10 

9% 
R 

^% 

17 


S2 

2i 
3 

1.25 
S1.20andSlnet 
2.U 
1.80 


Under  Public  Oumership 


SI 
ei>^and  SI 
1% 

Richmond  (pub.)  .70 
Wheeling  (pub.)  .75  and  .ft6  net 
1.17 
.50 


Electric  Light  and  Telephone. 


Cost  of  electric  light  in  private  plants: 


Private  Charges 


Cost 


(1893-4)  Pittsburgh,  Pa.. 

(IH90-7)Troy,  N.  Y 

(18116)  Buflfalo,  N.  Y 

(1897-81  Bufralo.N.Y.... 


per   telephone : 
Un- 


ited  States  Department  of 
the  Interior 


5195 

27 
100 


«75 


Grand  Rapids,  Wiss.  (prir.) \  [^  bSsfness 

Washington  (priv.  metallic, un-'  rjion  house 

•^I't^^) V-:-""V '  Ui25  business 

(22-) ,000  population)  j  "■ 

Shenectady.  N.  Y.  (priv.) j  if^^  I'ouse 

(27,000  population)  I  '66  business 


Cost  of  electric  light  lor  like  service 
by  public  planis  in  the  same  years: 

Allegheny,  Pa JH3 

West  Troy,  N.  Y 75 

Detroit 83 

Detroit « 73 


riSsv.eoftof] 

I  diiciiun  per 


«10>^ 

Gran'i    f  J6  house      i  -.^ •,- 

(co-op.)  (^818  business  |  which  wouli  add 

I  $3. 
Stockholm  (priv.  me-  |ifl6  house 

tallic,  unlimited!..     < 
(21)0,000  population)    (822  business 

Trondhjem,  Norway,    (muni- (■  S8J^ 

tipal  svstem < 

(30;000  population)  (.816% 


Telephone  Conversation  Charges  Private  Otonership 

Local  conversation  by  non-subsciiber 

Bell  prices  United  Stat»s 10  to  15  cts. 

To  call  a  friend  to  public  station  nearest  bis 
home  by  telephone  and  messenger. 

Bell  price  in  Philadelphia 50  cts. 

Ittterurban  talk 

Between  Mount  Holly  and 

Philadelphia  18  miles 25  cts. 

Boston  to  New  York  200  miles S2 

Boston  to  Philadelphia  304  miles $3 

Philadelphia  to  Chicago  820  miles $8 


Public  Otonership 
f  .Switzerland  2  cts. 
(  Germany  5  cts. 
f  Christiatiia  12  cts. 
I  Slockholni  1 1  cts. 
\  Anywhere  in 
i  Luxenburf^7  cts. 
[and  Belpiuui  5  cts. 
Same  Distances 
(■England,  postal 
■<  lines,  6  cts. 
(Sweden  4  cts. 

England  60  cts. 
fEnglai^d91  cts. 
J  France  60  cts. 
I  Germ.'iny  '.'.'5  cts. 
[Sweden  13  cts. 

I  Sweden  767  miles  27  cts. 
In  Germany  you  can  talk 
all    over   the   empire  for 
2".  cts. 


Public  ownership  and  control  is  estimated  to  have  reduced  transporta- 
tion charges  In  Switzerland  78  per  cent,  below  private  monopoly  level 
(see  p.  352).  ' 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES. 


129 


These  contrasts  and  the  facts  relating  to  water  rents,  the  Glas- 
gaw  tramways  and  the  "Two  Bridges"  stated  in  the  earlier  part  of 
this  section,  are  sufficiently  remarkable,  but  the  antitheses  now  to 
be  stated  from  the  history  of  electric  lighting  are,  perhaps,  still 
more  astonishing. 

Electric  LigJit.  The  table  below  and  the  explanation  following  it 
are  parts  of  one  statement,  and  should  be  so  treated  in  reading  or 
quoting. 

Cost  of  Electric  Light  Before  and  After  Public  Ownership. 

Ti.tul  cost  per  lanij)  year  for  electric  street  lights  before  and  after  public  operation,  the 
■  after    »emce  being  as  pood  or  better  than  the  service  it  replaced. 


1 

2 

a 

BEFOHK 

Price  paid  private 
com  1 -any  per 
street  arc  just  be- 
fore public  oper- 
atioD  begao. 

AFTER 

Co«t  per  arc   in- 
cludins  operating 
expenses,  taxes, 
insurance,  d'  pre- 
ciatiou  and  in- 
terest. 

AFTER 

Cost  ODdercompJ«<«puidic owner- 
ship tn-:ludiiig  operating  expen- 
seH.  taxes,  insurance  and  depre- 
ciation,  bat  not  interest,   there 
being  no  intenst  lo  pnj  vhen 
public   ownership   is   complete, 
1.  e.  when  the  people  own  the 
plant  free  of  debt. 

Aurora,  HI 

8325 
2.-8 
375 
125 
100 
132 
180 
160 
182 
185 

$72 
65 
95 
40 
67 
83 
86 
58 
58 
73 

161 
56 
80 

Elgin, 111 

Fairfield,  la 

Marshall  town,  la 

30 

Bay  City,  Mich 

58 

Detroit,  Mich 

68 

Allegheny,  Pa 

75 

Bangor,  Me 

48 

Lewiston,  Me 

52 

Peabody,  Mass 

62 

Column  2  is  made  up  of  the  operating  cost  plus  5  per  cent,  on 
the  investment  for  insurance,  taxes  and  depreciation,  and  4  per  cent, 
for  interest,  except  where  the  actual  interest  is  known.  With 
Aurora,  Fairfield,  Marshalltown  and  Bay  City  the  real  contrast  is 
between  columns  1  and  3,  for  there  is  no  debt  to  allow  for  in  those 
cases.  Perhaps  the  same  is  true  of  Bangor  and  Lewistown.  The 
data  in  my  possession  leave  that  point  in  doubt  in  those  two  cases. 
The  true  contrast  is  alwaj's  between  columns  1  and  3  if  you  wish 
to  compare  private  ownership  and  operation  not  merely  with  public 
operation  of  a  plant  the  capital  in  which  is  still  privately  owned, 
but  with  public  operation  and  ownership  complete." 


a.  little  less  In  the  public  than  in  the  private  works.  Wages  are  higher  here, 
but  the  hours  are  10  to  12,  instead  of  8,  as  in  England.  Allowing  for  this, 
Aruericau  wages  are  about  2.5  per  cent,  higher,  a  difference  more  than  bal- 
anced by  the  lower  cost  of  oil  and  coal,  so  that  in  American  works  of  large 
output,  the  cost  in  the  holder  is  usually  less  than  80  cents.  (For  further 
details  respecting  the  real  cost  of  gas  making,  see  reports  of  the  public 
companies  in  America  and  of  the  Local  Government  Board  In  England. 
Also  Prof.  Bemis'  Municipal  Gas,  pp.  25-7,  46-51,  54,  61,  129.  and  chapter  on 
Gas  in  Municipal  Monopolies,  pp.  589-592,  606,  608-9,  611-628.  City  Govern- 
ment, The  Progressive  Age,  and  the  proceedings  of  the  Incorporated  Gas 
Institute,  England,  contain  valuable  data  that  help  one  to  keep  abreast  of 
the  times.) 

•  When  we  are  trying  to  ascertain  what  it  is  fair  for  a  private  company 
to  charge,  we  must  add  interest,  but  when  we  are  trying  to  discover  the 
effect  upon  the  people  of  a  change  to  complete  public  ownership,  there  is 
no  interest  on  the  public  side  of  the  account. 

In  niv  articles  on  "The  People's  Lamps."  in  Th'-  Arena.  June  to  December, 
1895,  which  constituted  the  first  attempt  to  classify  electric  plants  according 
9 


130  THE  CITY  FOR  THE  PEOPLE. 

For  Bay  City,  Detroit  and  Allegheny  the  figures  represent  the 
cost  in  the  second  full  year  of  operation,  after  the  plant  had  "ot 
well  under  way,  but  in  the  other  cases  the  cost  in  some  of  the  sub- 
sequent years  has  exceeded  the  cost  in  the  early  years,  and  so  I 
have  taken  an  average  of  all  the  years  for  which  the  data  were  ob- 
tainable. For  example,  the  Peabody  costs,  including  interest  and 
all,  as  reported  by  the  superintendent,  run  $70,  $78,  $70,  $75,  $72.7, 
affording  an  average  of  $73. 

In  Aurora  the  operating  cost  for  the  second  year  was  $25  per  arc, 
and  the  investment  $230  per  arc,  making  a  total  actual  cost  of 
$36.50.  An  allowance  of  4  per  cent,  interest  would  add  $9.20.  In 
later  years  the  operating  expenses  have  varied  from  $50,  and  even 
$54,  to  $45  and  $40,  which  is  the  figure  for  1898.  The  total  operating 
expenses  from  the  start  foot  up  to  $95,882,  which,  divided  by  the 
total  number  of  lamp  years  gfives  an  average  operating  cost  of  $50. 
The  average  investment  has  been  about  $220,  wherefore  the  average 
total  cost  of  production  for  the  dozen  years  has  been  about  $61  a 
year  for  2000  candle  power  arcs  operated  an  average  of  6  to  7  hours 
per  day.  Deducting  3  per  cent  for  depreciation  each  year  since 
the  second  the  present  investment  for  each  of  the  233  arcs  is  about 
$200,  so  that  the  present  cost  of  production  is  $40  operating  cost, 
plus  $10  for  taxes,  insurance  and  depreciation,  or  $50  total.  No 
wonder  the  city  clerk  says  in  his  report  of  1897:  "Our  citizens  are 
thoroughly  convinced  that  municipal  management  of  street  light- 
ing is  the  most  economical  and  satisfactory." 

Prior  to  city  ownership,  in  1890,  Elgin  paid  $228  per  arc  till  mid- 
night, but  in  1891  the  city  plant  ran  all  night,  on  the  moon  schedule, 
or  one-third  more  hours,  at  an  operating  cost  of  $42  per  arc,  and 
a  total  cost,  interest  and  all,  of  $62.  The  prior  private  rate  was  fully 


to  the  elomciU.s  of  cost,  and  make  anything  like  a  thoro  study  of  public  and 
private  operation,  a  table  was  introduced  comparing  the  cost  of  light  be- 
fore and  after,  using  in  the  "after"  column  the  figures  for  complete  public 
ownership  as  reported  to  me,  and  explaining  in  the  text  that  interest  was 
not  included  and  why,  and  that  in  some  cases  the  reported  "operating  ex- 
penses" includtd  repairs  which  the  superintendents  said  were  more  than 
sufliclent  to  cover  depreciation,  etc.  The  table,  however,  was  quoted  with- 
out the  accompanying  explanation,  and  so  was  misunderstood.  I  have  there- 
fore reversed  the  plan,  putting  in  the  "after"  columns  the  highest  figures 
fairly  claimable,  with  interest  in  column  2  and  without  any  offset  against 
depreciation  in  any  case,  relying  on  the  accompanying  explanation  to  in- 
dicate the  amount  of  deduction  that  should  be  made.  Two  mistakes  in 
printing  were  made  in  the  Arena  table,  and  in  some  cases  1  have  found  that 
the  figures  reported  to  me  by  the  authorities  in  my  earlier  investigation  diller 
from  those  now  sent  me  for  the  same  items.  For  example,  the  former  re- 
port from  Bay  City  said  the  price  per  arc  just  before  city  ownership  was 
?110,  while  the  letter  now  at  hand  says  it  was  ?100.  So  in  Elgin  the  price 
was  reported  to  have  been  ."^266,  while  it  is  since  stated  as  $228.  My  former 
question,  however,  called  for  "tlie  price  paid  for  similar  service,"  and_  as 
the  lamps  burn  more  hours  under  public  ownership,  the  former  answer  may 
have  been  an  estimate  of  what  the  public  hours  would  have  cost  at  the 
private  rate  for  lower  hours. 

Some  corporation  gentlemen  have  objected  to  some  of  the  comparisons 
of  public  and  private  rates,  because  Aurora  and  Fairfield  run  the  electric 
works  in  connection  with  the  water  works,  and  Bangor  not  only  does  that, 
but  uses  water  power,  as  Lewistown  does  also.  I  cannot  see,  however,  that 
it  makes  any  difference  how  the  people  make  their  saving.  If  they  make 
it,  it  is  made  just  tlie  same,  whether  .stciiin  or  water  is  the  means. 
If  a  city  saves  $10  au  arc  by. using  water  power,  It  is  $10  per  arc  ahead  of 
where  it  was  just  as  much  as  if  it  were  saved  in  any  other  way.  The 
purpose  of  this  comparison  is  not  to  blame  the  private  companies,  but  to 
show  what  the  people  have  gained  and  can  gain  by  taking  matters  into 
their  own  hands  and  using  their  wits. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  131 

equal  to  $266  per  arc  for  the  service  rendered  by  the  public  plant, 
or  over  three  times  the  public  total.  Under  public  ownership  the 
operating  expenses  in  the  seven  years  for  which  I  have  data  have 
been  $42.2,  $45.7,  $46.2,  $42.6,  $43,  $53,  47.2,  giving  an  average  of 
$45.5.  The  report  for  1898  for  example  puts  the  operating  cost  at 
$47.20  including  $1  for  insiirance.  The  average  investment  per  arc 
figures  about  $200,  so  that  the  average  total  cost  without  interest  is 
$56,  and  with  interest  $62.  These  averages  are  almost  exactly  the 
same  as  for  the  third  year  of  operation,  and  somewhat  above  the 
figures  for  the  second  year. 

In  Aurora  and  Fairfield  the  private  charge  was  over  four  times 
the  public  total,  there  being  no  debt  on  the  public  plant,  and,  there- 
fore, no  Interest  to  pay. 

Detroit  reports  $89  per  arc,  total  cost,  including  interest  for  the 
year  ending  June  30,  1897  (the  second  year  of  operation),  but  Pro- 
fessor Commons  and  Professor  Bemis  both  criticise  the  reports  of 
the  Detroit  Commission.  (Mimicipal  Monopolies,  pp.  141,  270-2.) 
Professor  Commons  objects  that  the  $89  includes  interest,  $18.28 
per  arc  on  the  whole  plant,  no  allowance  being  made  for  the  incan- 
descent lights  or  for  the  fact  that  the  debt  was  less  than  the  cost 
of  the  plant.  The  true  interest  was  $3.13,  less  than  that  charged 
to  the  plant  in  the  report.  Professor  Bemis,  speaking  of  the  report 
for  the  next  year,  notes  that  the  investment  per  arc  is  calculated 
Tvithout  due  allowance  for  depreciation  or  for  the  fact  that  $43  per 
arc  represents  conduits,  only  one-fourth  of  which  are  used  by  the 
electric  light  plant.  One-half  of  the  poles  also  are  used  by  the 
police  and  fire  departments  and  by  private  lighting,  telephone  and 
street  railway  companies.  Regard  to  these  and  other  considerations 
named  by  Prof.  Bemis  would  reduce  the  total  cost  by  $3  or  $4  more 
per  arc.  For  1898-9  the  Commission  reports  $46.46  operating  cost 
per  arc;  depreciation,  $10.85;  interest,  $14.48;  lost  taxes.  $3.77; 
total,  $75.56,  including  interest,  or  $61  per  year  under  complete 
public  ownership,  free  of  debt.  The  number  of  arcs  averaged  1868 
for  the  jear,  and  the  investment  per  arc  is  said  to  be  $360,  but  $300 
is  more  nearly  right,  as  indicated  by  the  above  facts. 

The  Allegheny  plant  makes  an  excellent  showing.  The  last  re- 
port gives  $48  operating  cost  per  arc  of  2000  c.  p.,  burned  all  night 
and  every  night.  This  cost  includes  insurance  and  water.  Without 
insurance  the  operating  cost  is  about  $46.  Depreciation  is  estimated 
at  $12.46,  or  5  per  cent,  on  the  total  investment  down  to  date.  In- 
terest is  put  at  4  per  cent,  on  the  whole  investment,  or  about  $10; 
lost  taxes,  $1.87.  Total,  $72.33.  Five  per  cent,  depreciation  is  too 
much.'"  The  investment  on  which  depreciation  should  be  estimated 
is  not  $250  per  arc,  but  $218,  the  amount  resulting  from  writing  off 
3  per  cent,  depreciation  each  year,  and  the  depreciation  per  arc 
now  is  only  $6.54,  instead  of  $12.46.  Subtracting  the  sinking  fimd 
from  the  face  of  the  debt,   the  real  debt  is  only  $200,000,   and  as 


10  Sep    «Tbe   People's   Lamps,"   Arena,   for  Sept.,   1895;   and    "Municipal 
Monopolies,"  pp.  11.3,  12T,  133,  207,  269,  etc. 


132  THE  CITY  FOR  THK  PEOPLE. 

one-fifth  of  this  belongs  to  the  incandescent  plant  for  public  build- 
ings and  not  to  the  arc  service,  the  real  debt  for  each  of  the  1200 
arcs  is  only  $133,  and  as  the  bonds  draw  interest  at  4  per  cent.,  the 
actual  interest  is  $5.32,  instead  of  $10.  The  real  total  cost  for  1898 
is,  therefore,  under  $62,  including  interest  and  all. 

Fairfield  has  a  little  plant  that  cost  the  city  $5000.  If  3  per  cent, 
depreciation  be  deducted  from  1882  the  investment  novv^  is  but  $180 
for  each  of  the  18  arcs  operated.  The  average  yearly  operating  cost, 
including  the  expense  of  all  renew^als,  has  been  $64  per  arc. 

Bay  City  paid  $100  per  arc  burning  1400  hours,  but  under  public 
ovenership  burned  its  street  arcs  2421  hours  (or  1021  more  than  be- 
fore) at  a  total  cost  of  $58,  there  being  no  debt.  In  Peabody  the 
arcs  contracted  for  were  supposed  to  be  2000  c.  p.,  but,  according 
to  the  frequent  experience  with  private  companies,  were  really 
lower  in  candle  power  than  the  1600  c.  p.  lamps  operated  by  the  city. 

The  table  by  no  means  exhausts  the  important  facts  in  this  con- 
nection, but  its  meaning  is  likely  to  be  better  understood  if  it  is 
not  too  long.  A  few  additional  facts,  however,  may  be  mentioned 
here  without  danger  of  confusion. 

Jacksonville,  Florida,  started  a  public  electric  plant  in  1895,  which 
at  once  reduced  the  commmercial  incandescents  to  less  than  one- 
third  and  commercial  arcs  to  about  half  what  the  private  company 
was  charging — an  average  reduction  of  nearly  2/3  on  the  bills  of 
the  first  month.  In  the  third  year  of  operation  the  net  cost  of 
the  public  arc  lights  has  been  reduced  to  less  than  14  of  what  the 
city  had  been  paying  a  private  company,  and  commercial  rates 
have  been  reduced  from  I/2  to  %  ,  forcing  reductions  also  on  the 
part  of  the  private  companies  in  their  charges  for  electricity  and 
for  gas — reductions  which  alone  are  ofiicially  estimated  to  equal  a 
yearly  profit  to  consumers  of  light  of  2/3  the  cost  of  the  public 
plant.     (See  further  Appendix  II  B.) 

Jamestown,  N.  Y.,  began  in  1892.  In  1894-5  it  added  a  commercial 
plant.  In  1897  it  operated  275  street  arcs  1200  c.  p.  and  1200  sixteen 
c.  p.  lamps,  or  375  sub-arc  equivalents  at  a  net  .cost  to  the  city  of 
$48  per  arc  year,  including  depreciation  and  interest,  a  saving  of 
fully  1  cent  per  lamp  hour,  or  $22  a  year  for  each  lamp  equivalent, 
or  $8250  for  the  375  sub-arc  equivalents.  Citizens  pay  the  city  plant 
$6000  a  j^ear  for  commercial  lights,  saving  $3000  on  former  prices." 
Total  cost  and  total  income,  $24,000;  total  saving  on  the  light  fur- 
nished by  the  public  plant,  $11,250.  Besides  this.  Professor  Com- 
mons estimates  the  forced  reductions  in  the  charges  of  the  pi-ivate 
company  at  $10,000  a  year,  making  the  savings  to  the  citizens 
effected  by  the  public  plant  amount  to  a  total  of  $21,250  a  year  in 
a  town  of  2300  people. 

Lansing,  Mich.,  bought  the  private  works,  reduced  rates  at  once 
from  20  to  18  cents  per  1000  watts,  and  again  to  12  cents  in  twt. 


"  One  largo  consumer,  who  had  been  paying  ?1,400  a  year  for  his  lights 

fot  them  from  the  city  for  $900.  A  leading  social  club  had  been  paying 
450.  To  retain  its  custom,  the  comnanv  reduced  the  charge  for  the  satuf 
light  to  $120. 


PUBLIC  OWXEKSHIP  OF  PUBLIC   UTILITIES.  133 

years,  and  as  nearly  one-third  of  the  receipts  are  still  clear  profit 
above  all  expenses,  including-  interest,  the  real  reduction  is  not 
merely  2/5,  but  well  toward  2/3  of  the  former  private  charges. 

Spring-field,  111.,  has  lowered  the  cost  of  light  from  $138  to  $60 
per  arc  by  a  plant  built  to  become  public  via  a  citizens'  trust.  The 
citj'  pays  $113,  but  $53  of  it  is  not  for  light,  but  goes  toward  paying 
for  the  plant.  The  $60  covers  interest,  depreciation  and  operation 
(see  Method  below).  The  Chicago  plant,  in  its  early  years,  cut  the 
cost  at  least  $125  from  the  private  charges  before  the  public  plant 
was  built,  and  is  now  making  a  fine  record.  (See  Objections  below.) 
Chief  Barrett  said  in  1895  that  the  public  works  could  furnish  com- 
mercial incandescents  at  14  the  private  charge  of  a  cent  per  lamp 
hour,  16  c.  p.,  if  the  public  plant  could  secure  permission  to  sell 
commercial  lights.  Eecently  he  has  said  (speaking  of  the  whole 
commercial  service,  including  both  arc  and  incandescent  lights) 
that  if  the  city  could  sell  light  to  private  consumers  the  charges 
now  exacted  from  them  could  be  cut  in  two.  The  South  Park  Sta- 
tion, in  charge  of  the  Park  Commissioners,  makes  a  splendid  show- 
ing, as  appears  in  the  table  below. 

Logansport,  Ind.,  has  a  commercial  plant  which  has  just  reduced 
the  commercial  rate  for  incandescents  to  5  cents  per  1000  watts,  or 
y^  cent  per  lamp  hour,  16  c.  p.  In  1894,  when  the  public  plant  was 
built,  the  private  charge  was  1  cent  per  hour  or  20  cents  per  1000 
watts.'  In  1897  the  commercial  receipts  of  the  Logansport  plant 
more  than  covered  the  entire  operating  expenses,  plus  depreciation, 
taxes  and  insurance,  giving  the  city  its  street  lighting  free  and  a 
profit  besides.  Ames,  la.,  reports  receipts  from  commercial  lighting 
which  yield  a  surplus  above  all  costs  of  operation,  depreciation 
and  interest.  Quite  a  number  of  public  plants  cut  the  cost  of  public 
lighting  very  much  by  selling  commercial  lights  at  a  profit  tho  at 
rates  very  much  below  the  usual  private  charges.  (See  Arena,  Vol. 
13,  pp.  391-2.)  Seven  municipalities  report  all  expenses  covered  by 
commercial  lighting  and  seven  others  report  a  profit  above  all  cost 
of  operation  and  fixed  charges.  (Ibid.,  adding  Ames  and  Logans- 
port.) 

The  present  cost  of  producing  electric  light  in  municipal  plants 
is  shown  in  the  following  table.  The  data  given  by  the  local  au- 
thorities have  been  adopted  except  as  to  the  investment  per  arc  in 
Detroit,  Allegheny  and  Aurora.  (See  above.)  The  investment  given 
in  a  number  of  other  cases  is  probably  15  per  cent,  or  20  per  cent, 
too  high,  because  depreciation,  tho  estimated  as  part  of  the  cost 
of  light  from  year  to  year,  has  not  been  charged  off  or  deducted  from 
the  capital  account.  The  figures  relate  to  1897  and  1898,  except  in 
Braintree  and  Danvers  squares,  where  separate  arc  data  have  not 
been  sent  me  since  1895.  For  1898  the  Danver's  municipal  reports 
show  123  sub-arcs,  1,200  c.  p.  (average  number  for  the  year  115)  and 


*  Logansport  has  natural  gas  for  power,  estimated  by  the  local  authori- 
ties to  be  equal  to  coal  at  $1.65  per  ton.  This  does  not  affect. the  compari- 
son, for  the  private  plant  had  the  same  advantages  in  respect  to  fuel  as 
the  public  plant. 


134 


THE  CITY  FOR  THE  PEOPLE. 


about  3,000  commercial  incandescents  16  c.  p.  The  commercial  rates 
are  %  cent  per  lamp  hour  or  10  cts.  per  1,000  watts.  Commercial 
receipts,  $3,752;  total  operating  exjjenses,  $7,8G9;  leaving  $4,117  to 
be  paid  from  taxation,  which  with  interest  and  depreciation  on  the 
whole  investment  gives  $59.28  as  the  total  cost  to  the  city  of  each 
street  arc  as  estimated  by  the  local  authorities.  The  total  invest- 
ment is  $37,313;  incandescent,  $20,500;  arc,  $16,813.  The  debt  on 
the  arc  plant  is  $1,500,  and  there  is  in  the  treasury  a  sum  of  $1,500 
Bet  apart  to  pay  that  debt,  so  that  in  fact  no  interest  should  be 
entered  against  the  arc  service  when  the  cost  of  production  is  being 
considered.  The  actual  operating  cost  per  sub-arc  was  $46  four 
yeoxs  ago,  and  is  probably  lower  now;  depreciation  and  taxes 
would  add  $6.50,  making  the  total  cost  of  production  now  not  over 
$52  for  each  sub-arc  of  1,200  c.  p.  burning  an  average  of  5  to  6  hours 
a  day. 

Present  Cost  of  Slectric  Iiight  in  Municipal  Plants. 


Bangor,  Me 

Lewiston,  Me 

Dunkirk,  N.Y 

West  Troy,  N.  Y 

Allegheny,  Pa. 

Eaaton,  Pa 

Bay  City,  Mich 

Detroit,  Mich 

Chifago    (So.   Park 
Plant) 

Aurora,  111 

Elgin,  111 

Topeka,  Kan 

Little  Rock,  Ark 

Wheeling,  W.  Vt 

Pcitwdy,  Mass 

Braintree,  Mass 

Panvers,  Mass 

Jamestown,  N.  Y 

So.  Norwalk,  Conn 


S  p. 

11 

< 

o 

o  o 

< 

Yearly  operating 
expenses    per 
arc. 

Taxes,  insurance 
and  deprecia- 
tion  at   5?t  on 
investment. 

Total  cost  per  arc 
under  complete 
public    owner- 
ship. 

a 

V 

156 

10 

W.  P. 

$38J^ 

«7 

$4; 

«6 

150 

6 

" 

45 

6>^ 

52 

5>^ 

7i 

8 

31.45 

39>^ 

14 

53>^ 

11 

115 

i'3^ 

3.15 

61 

14 

75 

11 

1,200 

11 

.95 

4«i 

11 

57 

■•••.7 

141 

103^ 

2.85 

80 

15 

96 

12 

209 

7 

1.80 

42}4 

^Vs 

52 

TA 

1,868 

lOJ^ 

2.10 

46K 

15 

6134 

12 

490 

6 

3.90 

42 

15 

57 

11>^ 

233 

6 

1.75 

40 

10 

50 

8 

188 

6 

1.90 

46K 

9^ 

66 

734 

261 

6 

2.00 

411^ 

9 

51 

9 

2l2 

7 

2.55 

41% 

8 

4-34 

sy^ 

(2500c.p.) 
450 

11 

.90 

46 

11>^ 

5734 

9 

(1600  c  p.) 
170 

10 

3.25 

51 

1034 

6114 

»y2 

(1200c.p.) 
118 

7^ 

3.05 

47J^ 

14 

6134 

"3^ 

(1200c.p.) 
78 

^A 

3.00 

46 

10^ 

5634 

sy. 

(I200c.p.) 
283 

11 

1.60 

36 

13 

49 

1034 

(UOOcp.) 

;oo 

6 

2.80 

sey. 

11 

4734 

9 

$145 
183 
•O 
280 
218 
300 
187 
300 

290 
200 
190 
185 
165 
230 
210 
280 
210 
260 
220 


The  interest  actually  paid  in  some  of  these  plants — ^West  Troy 
and  Aurora  for  example — ^is  nothing.  In  others  the  actual  interest 
is  much  less  than  the  estimates  in  the  seventh  column.     For  ex- 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  135 

ample,  the  real  interest  in  Allegheny  is  $5.32  per  arc;  in  Wheeling, 
$3.00;  in  Dunkirk,  53  cents,  etc. 

The  first  14  plants  have  no  commercial  business.  This  is  well  un- 
derstood to  be  a  serious  handicap.  Chief  Barrett,  of  Chicago,  made 
this  point  very  emphatic,  and  Mr.  Alex.  Dovr,  fonnerly  in  charge  of 
the  Detroit  plant,  and  now  general  manager  of  the  Edison  Illumi- 
nating Company,  of  the  same  city,  says:  "It  is  peculiarly  character- 
istic of  public  lighting  operated  all  night,  that  its  addition  to  the 
ordinary  work  of  a  private  lighting  plant  tends  to  reduce  the 
average  cost  of  the  combined  output."  He  also  speaks  of  the  dupli- 
cation of  equipment  resulting  from  having  one  plant  for  commer- 
cial work  and  another  for  street  work.^  This  matter  was  clearly 
brought  out  in  the  Arena  in  1895.^ 

For  other  data  respecting  the  cost  of  production  and  the  charges 
for  commercial  light,  see  my  chapters  on  "The  People's  Lamps,"  in 
The  Arena,  Vols.  13  and  14,  and  the  later  investigations  of  Professor 
Commons  and  Professor  Bemis,  in  their  chapters  in  Municipal  Mo- 
nopolies. I  have  found  the  usual  commercial  charge  in  public 
plants  to  be  V2  cent  per  lamp  hour,  or  half  the  usual  private  charge. 
Sometimes  the  rates  are  %  of  a  cent,  as  in  Peabody  and  Marblehead, 
Mass.,  and  Lisbon,  la.,  and  sometimes  they  go  down  to  1/3  of  a  cent 
or  below,  as  in  Newark,  Del.  (with  steam),  and  Swanton,  Vt.  (with 
water  poAver),  and  in  one  instance,  Logansport,  Ind.,  the  rate  is 
%  of  a  cent  per  lamp  hour.  Professor  Commons  arrives  at  sub- 
stantially the  same  conclusion,  stating  that  the  usual  rates  with 
public  plants  are  14  cent  per  meter  hour  and  35  to  50  cents  per 
month,  against  one  cent  per  hour  and  75  cents  to  $1.25  per  month 
with  private  companies.     (Munic.  Monops.,  p.  156.) 

Professor  Bemis  has  obtained  data  from  several  hundred  plants, 
public  and  private,  and  placed  them  in  groups,  according  to  number 
of  lamps,  candle  power,  hours  burned,  cost  of  coal,  etc.,  and  in  every 
group  the  average  charge  by  the  private  companies  is  more  than 
the  cost  in  the  public  plants,  even  when,  in  addition  to  5  per  cent, 
interest,  7l^  per  cent,  is  allowed  for  depreciation,  loss  of  taxes  and 
other  charges  not  covered  by  the  operating  expenses.  (Ibid  p.  240 
and  tables  following.)  Professor  Bemis  does  not  allow  such  per- 
centages because  they  are  the  true  percentages,  but  in  order  to 
meet  objectors  on  their  own  ground.  His  tables  comparing  public 
and  private  plants  operating  under  similar  conditions  thruout  are 
admirable.  The  method  is  as  conclusive  as  anything  can  be,  except 
the  record  of  "befores"  and  "afters"  in  the  same  cities,  or  the  direct 
comparison  of  plants  precisely  alike,  except  that  one  Is  public  and 
the  other  private.  And  his  facts  show  beyond  question  that  even 
admitting  the  claims  of  the  leading  advocates  of  private  monopoly, 
the  proof  is  still  clear  in  every  group  that  public  service  is  cheaper 
than  private. 

The  facts  of  this  section  by  no  means,  exhaust  the  evidence  on 


^  Address  to  the  Natl.  Blec.  L.  Assoc,  June  8.  1898. 
2  "The  People's  Lamps,"  Nov.  number,  pp.  449,  455. 


136  THE  CITV  FOR  THE  PEOPLE. 

this  head,  jet  they  constitute  a  massive  proof  that  public  owner- 
ship tends  to  low  rates.  I  have  thot  best  to  dwell  with  special  em- 
phasis on  the  financial  sections  of  this  chapter,  because  the  majority 
of  people  live  on  the  money  plain.  With  most  men  when  you  touch 
the  pocket  nerve  you  touch  the  most  sensitive  part  of  their  being, 
the  most  fullj'^  developed  portion  of  their  nervous  structure,  the 
fibres  most  vitally  connected  with  the  motor  muscles  and  the 
centres  of  thought  and  action,  and  having  the  most  powerful  in- 
fluence over  them.  For  these  reasons  I  give  much  space  to  the 
financial  aspects  of  the  subject,  tho  I  believe  them,  weighty  as  they 
are,  to  be,  nevertheless,  intrinsically  of  vastly  less  importance  than 
the  humanitarian  and  social  advantages  of  public  ownership. 


THE   ECONOMY   OF   PUBLIC   OWNERSHIP. 

II.  Economy.  Besides  the  saving  to  the  people  from  low 
rates  public  ownership  tends  to  secure  an  absolute  economy 
in  production.  Several  of  the  reasons  for  this  I  stated  in  The 
Arena  for  August,  '95,  and  repeat  them  here  with  nine  addi- 
tional points. 

1.  A  public  plant  does  not  have  to  pay  dividends  on  watered  stock. 

2.  It  does  not  have  to  pay  dividends  even  on  the  actual  invesiiuent. 

3.  It  does  not  have  to  retain   lawyers  or  lobbyists,   or  provide  for  the  en- 

tertainment of  Councilnien,  or  subscribe  to  campaign  funds,  or  bear  the 
expenses  of  pushing  the  nomination  and  election  of  men  to  protect  its 
Interests  or  give  it  new  privileges,  or  pay  blacljmaii  to  ward  off  the 
raids  of  cunning  legislators  and  officials,  or  buy  up  its  rivals,  etc. 

4.  It  does  not  have  to  advertise  or  solicit  business. 

6.  It  is  able  to  save  a  great  deal  by  combination  with  other  department* 
of  public  service.  Speaking  of  the  low  cost  of  electric  light  in  Dunkirk, 
the  Mayor  of  the  city  says:  "Our  city  owns  its  water  plant,  and  the 
great  saving  comes  from  the  city's  owning  and  operating  both  plants. 
No  extra  labor  is  required  but  a  lineman.  The  same  engineers,  fire- 
men and  superintendents  operate  both  plants,  and  the  same  boiler 
power  is  used.,.  So  in  Bangor,  Marshalltown,  and  a  number  of  other 
places,  the  municipal  ligliting  system  is  run  in  connection  with  the 
public  water  plant.  In  Wheeling,  the  gas  and  electric  plants  are  op- 
erated together.  In  La  Salle,  the  flre,  water,  and  liglit  departments 
are  consolidated.  A  great  saving  in  the  cost  of  labor  and  superintend- 
ence results. 

6.  Public  ownership  has  no  interest  to  p-ay. 

7.  Even  where  public  ownership  is  incomplete,  the  people  not  owning  the 

plant  free  of  debt,  they  still  have  an  advantage  in  respect  to  Interest, 
because  they  can  borrow  at  lower  rates  than  the  private  companies 
have  to  pay. 

8.  As  cities  usually  act  as  their  own  insurers,  public  ownership  is  free  of 

tribute  to  the  profits  and  agency  commissions  of  private  insurance 
companies.  Looking  at  the  public  works  of  the  country  en  masse,  this 
is  a  decided  economy.  But  the  diffusion  of  loss  in  individual  cases 
is  likely  to  be  less  perfect  under  this  system  than  with  private  in- 
surance, unless  municipalities  federate  in  a  plan  of  mutual  insurance. 
Ex-Mayor  Mattliews,  of  Boston,  defending  the  charges  for  electric 
light  in  that  city,  as  agent  of  the  Boston  Electric  Light  Company,  (in 
the  summer  of  1898),  admitted  that  a  private  company  must  add  .^8 
or  $10  to  the  legitimate  cost  in  a  public  plant,  because  a  private  com- 
pany would  demand  6  per  cent,  on  the  investment,  instead  of  4  per 
cent,  and  would  have  to  pay  nearly  $2  more  per  light  for  insurance, 
fire  and  liability,  to  cover  the  profits  of  a  private  insurance  company. 

9.  There  is  often  a  large  saving  in  salaries.    A  public  plant  pays  its  chief 

well,  but  does  not  pay  the  extravagant  salaries  awarded  by  miliionare 
monopolists  to  themselves  or  their  substitutes  in  office. 
10.  Public  plants  frequently  gain  thru  the  higher  efficiency  of  better  treated 
and  more  contented  labor,  still  further  energized  in  many  cases  by 
the  noble  motives  and  sentiments  that  go  with  public  service  in  the 
minds   of  patriotic   men. 


PUBLIC   OWNEESHIP  OF  PUBLIC  UTILITIES.  137 

^^-  '^fedgeil^'of  Sfc^wo'l-k's^  '*''"^  '*'''^"'  ^""^  ^°''^''"*^  ^"^  ^«t  burden  the 

12.  Dnii.ages  and  costs  of  litigation  are  likely  to  be  less  with  public  than 

witli  private  works  Accidents  are  fewer  in  a  system  that  aims  at 
good  service  and  safety,  and  treats  its  employes  well  When  th?v  do  ' 
occur  the  claims  are  often  compromised  or  settled  fairly  and  amicably 
without  suit.  (S9metimes  public  industry  is  largely  protected  by  law 
from  damage  claims,  but  this  is  not  a  good  economy.)  When  trial  be- 
comes necessary,  juries  are  more  lenient  toward  cities  and  towns  than 
toward  private  corporations.  And  finally,  legal  talent  costs  the  city 
less  than  a  private  company  for  the  same  service.  I  have  in  mind  a 
city  of  a  hundred  thousand  people  I  used  to  know  something  of,  which 
paid  only  ^1,500  a  year  to  one  of  the  best  lawyers  in  the  state  to  act 
as  city  counsel,  while  a  railway  company  retained  the  same  lawver  nt- 
«9n  non-^f  °^f  10,000,  The  Boston  Eie^-ated  is  said  to  hiv? paid  ^earfv 
$20,000  for  the  services  of  two  lawyers  in  connection  with  a  single  hear- 
ing at  the  State  House,  or  more  than  half  as  much  in  one  item  as  the 
city  of  Boston  pays  for  legal  services  in  a  whole  year.  The  totals  of 
corporation  expenditure  for  lawyers  salaries  and  fees  are  not  easy  to 
obtain,  but  it  is  well  known  among  those  conversant  with  corporate 
aftairs,  that  a  single  municipal  monopoly,  like  the  Union  Traction  of 
Philadelphia  or  the  West  End  Street  Railway  of  Boston,  pays  several 
times  as  much  for  legal  services  as  the  whole  city  in  which  it" is  located 
with  all  its  hundreds  of  miles  of  streets  and  other  vast  interests  such 
as  water-works,  gas-works,  fire  service,  schools,  parks,  hospitals,  etc 
and  its  complex  government  with  thirty  or  forty  departments. 

13.  The   civic  interest  of  the  people  leads  to  other  economies  thru  the   in- 

crease of  patronage  and  the  lessening  of  waste.  The  larger  the  out- 
put, the  lower  the  cost  of  production  per  unit  of  service,  other  things 
equal,  and  the  tendency  to  waste  electricity,  water,  etc..  is  much 
less  when  the  people  know  that  the  service  is  a  public  one,  the  profits 
of  which  belong  to  them  and  the  loss  in  which,  if  any,  must  be  paid  by 
them,  than  when  they  know  that  the  service  Is  rendered  by  a  private 
corporation  charging  monopoly  rates  and  making  big  profits  for  a  few 
stockholders.  The.se  economies  are  intensified  as  education  and  exper- 
ience with  public  ownership  develop  the  understanding  and  the  civic 
patriotism  of  the  people. 

14.  The    diffusion    of    wealth    and    elevation    of    labor    accompanying    public 

ownership  tend  to  diminish  the  extent  and  the  cost  of  the  criminal 
and  defective  classes. 

15.  The   cost  of  numerous  regulative   commissions  and  interminable  legisla- 

tive Investigations  into  the  secrets  of  private  monopolies,  would  be 
saved  by  the  extension  of  public  ownership. 

16.  The  elimination   of  conflict  and  antagonism   carries  with  It  the  cost  of 

all  the  useless  activities  prompted  by  that  antagonism.  Legislation 
would  cost  us  less,  for  example,  were  it  not  for  the  private  monopolies. 
For  a  large  part  of  the  time  and  attention  of  our  legislatures  is  given 
to  them. 

Mr.  Baker  thinks  that  one  "advantag-e  of  city  ownership  is  that  „« 

no  taxes  are  levied  by  the  city  on  its  own  property,  and  hence  this  d^ 
item  of  expense  is  eliminated."  I  believe,  however,  that  taxes  must 
be  included  in  the  real  cost  of  municipal  water,  gas  or  other  public 
service.  (1)  The  government  is  a  factor  in  production.  Every  hon- 
est industry,  whether  public  or  private,  owes  something  to  the 
safety,  order  and  protection  afforded  by  state  and  municipal  gov- 
ernments, and  to  that  extent  the  cost  of  government  is  an  element 
in  the  cost  of  producing  commodities  and  service.  (2)  Justice  re- 
quires that  taxes  should  be  included  in  the  cost  of  public  supplies 
and  collected  in  the  rates,  except  where  considerations  above  the 
financial  plain  command  the  service  to  be  rendered  free  or  below 
cost.  To  bring  out  the  point,  suppose  the  taxes  of  a  community 
w^ere  paid  by  the  consumers  of  gas  and  electric  light  thru  the  me- 
dium of  the  rates.  If  then  the  electric  light  plant  were  made  public 
and  freed  from  taxes,  the  consumers  of  gas  would  have  to  pay  the 
whole  cost  of  the  government.  The  elimination  of  taxes  from  the 
cost  of  public  service  would  throw  an  undue  bui-den  on  other  prop- 
erty and  industries  and  their  distinctive  patrons. 

Some  persons  insist  that  interest  must  be  estimated  as  part  of 


138  THE  CITY  FOR  THE  PEOPLE. 

the  cost  in  public  works,  whether  the  plant  is  clear  of  debt  or  not. 
This  seems  to  me  an  error,  and  I  am  glad  ix)  find  that  both  Profes- 
sor Commons  and  Professor  Bemis  agree  with  me.'  There  is  no 
more  reason  to  compute  interest  on  a  public  plant  out  of  debt  than 
on  the  money  invested  in  the  streets  and  pavements.  If  a  man  B 
earns  $2000  a  year  and  lives  in  a  house  of  his  own,  for  which  he 
would  have  to  pay  $1000  if  it  were  owned  by  some  one  else,  it  does 
not  cost  him  $3000  to  live,  but  only  $2000,  if  he  spends  all  he  makes. 
It  is  one  great  advantage  of  owning  his  dwelling  that  it  costs  him 
less  to  live  than  if  he  had  to  rent.  But  you  may  say,  he  could  rent 
his  house  for  $1000,  so  it  really  costs  him  $3000  to  live.  Well,  per- 
haps he  could  earn  $10,000  a  year  in  another  business,  but  it  does 
not  cost  him  $10,000  a  year  to  live  because  of  that  fact.  The  pro- 
ductive effort  he  puts  forth,  the  total  cost  to  him,  is  $2000  a  year. 
His  two  daughters  might  earn  $1500  teaching,  and  his  wife  might 
take  in  washing,  etc.,  which,  with  the  rent  of  the  house,  might 
make  a  total  of  $5000  a  year  income  the  family  might  have,  yet  it 
does  not  cost  that  family  $5000  a  year  to  live.  It  is  a  confusion  of 
thought  to  class  what  you  give  up  as  part  of  the  cost  of  production.' 


^  Professor  Commons  comes  to  his  conclusion  by  a  different  path,  but 
reaches  the  same  result  that  I  did  in  the  '95  Arena  articles,  speaking  of 
which,  the  Professor  says:  "I  agree  that  both  he  and  the  city  otficlals  are 
right  in  figuring  interest  only  on  the  outstanding  debt.  This  gives  the  true 
cost  of  production  to  the  taxpayers,  and  the  saving  of  interest  in  this  way 
must  be  counted  as  one  of  the  most  Important  economies  which  municipal 
ownership  brings."  (Munic.  Monops.,  p.  100.)  Spealiing  of  the  Richmond 
Gas  Works,  Prof.  Bemis  says:  "Since  the  plant  was  paid  for  fully  15  years 
ago  out  of  the  net  receipts,  there  is  no  need  of  allowing  anything  for  in- 
terest." And  again,  when  stating  the  cost  in  Bellefontalne,  without  any 
estimate  for  interest,  he  says:  "As  the  plant  has  been  paid  for,  there  is, 
of  course,  no  need  of  earning  interest."    (Ibid,  pp.  609,  613.) 

'  It  may  be  said  that  a  city  owning  a  gas  or  electric  plant,  for  example, 
might  have  put  the  cost  of  the  works  at  Interest  so  that  "lost  interest" 
must  be  Included  In  the  cost  of  production  along  with  "lost  taxes."  In  the 
first  place,  taxes  are  not  included,  because  they  are  "lost."  The  taxes 
formerly  coming  from  the  private  electric  company  are  not  lost.  Their 
Incidence  Is  changed,  that  is  all.  The  government  gets  its  requisite  revenue; 
If  less  here  then  more  there.  The  said  taxes  were  really  paid  by  a  certain 
body  of  citizens  thru  the  medium  of  light  rates;  now  they  are  paid  thru 
other  media  by  a  somewhat  different  body  of  citizens  perhaps.  The  reason 
for  Including  taxes  is  that  they  pay  for  one  of  the  factors  In  the  production 
of  light — the  protection  of  government.  There  is  no  analogy  therefore 
between  Interest  and  taxes  in  this  relation. 

In  the  second  place,  suppose  a  city  owns  an  electric  street  lighting  plant 
producing  at  a  cost  of  ?60  per  standard  arc  including  operation,  taxes  and 
sinking  fund  for  depreciation  and  Insurance,  and  that  the  investment  is 
$300  per  arc.  And  suppose  the  city  sold  the  works,  loaned  the  money  at  5 
per  cent,  (or  $15  an  arc)  and  bought  light  from  a  private  company  at  the 
$60  cost  plus  $15  Interest;  the  real  cost  to  the  city  is  still  $60;  the  $15  is 
really  paid  by  those  who  borrowed  the  electric  light  money;  whatever  way 
you  look  at  it  the  ownership  of  the  electric  fund  saves  the  city  from 
wrestling  for  interest  on  electric  light  or  other  commodity  involving  equiva- 
lent capital.  It  is  one  of  the  great  advantages  of  ownership  that  it  saves  the 
owner  Interest.  Interest  is  money  paid  for  the  use  of  money  or  capital.  If 
you  own  the  capital  you  don't  have  to  pay  for  the  use  of  it.  Otherwise  you 
might  as  well  be  a  borrower  as  an  owner.  "When  the  producer  works  with 
his  own  capital  he  has  to  take  care  of  depreciation  but  not  interest. If 
Interest  were  charged  in  the  above  mentioned  public  street  lighting  plant 
and  $75  per  arc  were  collected  from  the  taxpayers  instead  of  $60.  $15  of 
each  $75  would  go  into  the  public  treasury,  that  "is  in  substance  it  would  go 
back  Into  the  pockets  of  the  taxpayers  and  the  effect  would  be  the  same  as 
If  no  interest  were  calculated  on  electric  light.  In  case  of  a  commercial 
plant  paid  for  by  taxation  the  effect  would  probably  not  be  quite  the  same 
so  far  as  Individuals  are  concerned  since  the  body  of  consumers  may  not  be 
Identical  with  the  body  of  taxpayers  in  personnel  or  proportion  of  payment. 
Yet  even  here  the  difference  practically  vanishes  when  the  plant  is  paid  for 
out  of  earnings  as  is  usually  the  case,  and  under  any  circumstances  if  the 
municipality  owning  a  plant  commercial  or  otherwise,  is  regarded  as  a  unit. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  139 

The  cost  of  production  is  what  you  must  have  under  existing-  con- 
ditions and  the  rest  is  profit.  Let  rival  manufacturers  make  war 
on  each  other,  one  an  owner  and  the  other  a  borrower,  and  you 
will  soon  see  that  interest  does  not  enter  into  the  cost  of  produc- 
tion in  the  case  of  the  owner.  Hq  can  live  on  his  wag-es  of  superin- 
tendence. Operating  expenses,  including  repairs,  insurance,  taxes 
and  depreciation,  cover  his  cost  and  he  can  sell  rig-ht  down  to  the 
bone  if  he  is  willing  to  get  along  without  profit.  In  the  case  of  the 
borrower,  however,  interest  is  an  item  in  the  cost  of  production, 
and  it  is  just  this  difference  that  makes  it  so  much  cheaper  to  be 
an  owner  than  a  borrower. 

The  advantage  of  a  city  as  a  borrower  is  a  considerable  item. 
In  1895  I  found  that,  as  a  rule,  private  companies  were  paying  from 
2  to  4  per  cent,  more  than  the  municipalities  in  which  they  were 
located.  The  West  End  Street  Railway  paid  5  and  6  per  cent.,  the 
Boston  Electric  Light  Company  reported  interest  amounting  to  6 
per  cent.,  and  the  Edison  Company's  report  indicated  7  per  cent. 
All  the  way  thru  the  Water  Manual  I  find  the  private  companies 
paying  5,  6  and  7  per  cent.,  while  the  public  loans  often  run  2  per 
cent,  less,  and  sometimes  3  and  even  4  per  cent,  below  the  private 
rate.  Boston,  New  York,  Philadelphia,  Syracuse,  Dunkirk  and  other 
cities  have  borrowed  at  3  per  cent.;  Cambridge,  Rochester,  Troy, 
Alllegheny  at  3^4  per  cent.;  Peabody,  Braintree,  Newton,  South 
Norwalk,  Harrisburg,  Easton,  4  per  cent.  A  difference  of  2  per 
cent,  in  the  interest  rate  means  a  difference  of  about  $5  per  year 
in  the  cost  of  production  of  a  standard  arc  lamp  under  ordinary 
conditions,  and  with  a  plant  like  that  of  Chicago  in  1894  (under- 
ground wires,  etc.)  it  would  mean  a  saving  of  $12  per  arc,  or  $13,320 
on  the  1110  arcs  then  lighted  by  the  city  plant. 

The  higher  wages  and  shorter  hours  that  often  characterize 
public  treatment  of  employes,  have  a  tendency  to  increase  the  cost 
of  labor.  This  is  often  balanced  or  more  than  balanced  by  a  re- 
sulting increase  in  the  efficiency  of  labor.  When  it  is  not,  the  ex- 
cess should  properly  be  charged,  not  to  light,  or  water,  or  trans- 
portation, but  to  citizenship.  The  true  philosophy  of  the  matter 
is  that  if  a  city  can  produce  light  for  $60  per  arc  at  competitive 
wages  and  hours,  that  is  the  real  cost  of  production  of  the  light, 
and  if  $20  more  per  arc  are  paid,  not  because  the  city  has  to  pay  it 
to  get  the  Uylit,  but  because  it  wishes  to  pay  it  to  get  better  citizen- 
ship, then  the  $20  in  a  rational  account  should  not  be  charged  to 
the  production  of  light,  but  to  the  production  of  manhood. 

In  respect  to  the  salaries  of  leading  officials,  public  ownership 
economizes  in  money  at  the  same  time  that  it  diminishes  luxurious 
and  aristocratic  tendencies  and  helps  to  produce  conditions  favor- 
able to  the  growth  of  democratic  sentiments  and  the  development 


the  pavment  of  intorest  on  a  service  free  of  debt  Is  simply  paying  money 
out  of  one  pocket  into  another,  just  as  if  a  man  owning  a  mill  should  pay 
hims'lf  SIOOO  interest  on  the  capital  invested.  The  interest  would  go  frorn 
his  right  pocket  into  his  left,  he  would  have  just  as  much  money  as  he  had 
before,  and  interest  would  really  have  cost  him  nothing  however  much  he 
put  it  down  on  paper. 


140  THE  CITY  FOK  THE  PEOPLE. 

of  vigorous  and  useful  manhood  in  the  leaders  of  industry  and  in 
their  families.*  In  Auburn,  New  York,  the  president  of  the  private 
water  company  received  $4000  a  year,  but  after  the  city  bought 
the  works  the  chief  of  the  water  system  received  $2500,  and  the 
total  operating  expenses  were  reduced  from  $20,000  to  $16,000  the 
first  year,  altho  the  outjiut  was  increased  500,000  gallons  a  day  or 
1/7  of  the  total  under  private  ownership.  In  Philadelphia  the  head 
of  the  gas  plant  sui^plying  the  whole  city  received  $5500  a  year, 
while  the  salary  of  the  president  of  the  Boston  gas  combine  was 
$25,000,  and  that  of  the  treasurer  $22,000  a  year.  With  the  street 
railways  public  ownership  would  save  at  a  still  higher  ratio  in  the 
item  of  salaries,  if  it  is  true,  as  reported,  that  the  presidents  of  the 
railway  systems  in  our  largest  cities  receive  $25,000  to  $50,000  or 
more  apiece.  It  is  understood  that  the  former  president  of  the 
Union  Traction  of  Philadelphia  received  $25,000,  and  the  new  presi- 
dent began  with  $20,000,  with  a  prospect  of  increase.  The  name  of 
H.  H.  Vreeland,  president  of  the  Metropolitan  Traction  of  New 
York,  is  put  in  the  center  of  a  list  of  ten  men  whose  salaries  are 
said  to  aggregate  $650,000  a  year. 

The  amount  of  economy  due  to  the  elimination  of  legislative  cor- 
ruption, etc.,  under  the  third  count,  cannot  be  estimated  with  any 
precision.  The  reader  will  find  in  Sections  8  and  9  sufficient  evidence 
that  the  saving  is  not  inconsiderable.  The  following  passage  from 
page  135  of  Professor  Bemis'  work  on  Municipal  Gas  will  impart 
additional  emphasis  to  the  point. 

"A  lawj'er  of  deserved  prominence  and  high  character  in  Tennes- 
see who  has  been  the  attorney  of  a  large  gas  company  for  years  in- 
formed the  writer  that  not  a  year  had  passed  since  he  has  known 
anything  about  it,  when  his  company  had  not  felt  itself  forced  t 
direct  bribery  of  the  city  council  to  secure  favors,  or  more  often 
to  protect  itself  from  unscrupulous  raiders.  The  superintendent 
of  a  large  gas  company  in  another  state  told  me  that,  while  his 
company  had  not  thus  resorted  to  bribery,  it  would  undoubtedly  do 
so  in  self-defense  if  its  interests  were  seriously  menaced.  A  well- 
known  president  of  one  of  the  largest  gas  companies  in  the  West 
has  informed  a  friend  of  mine  that  he  was  asked  a  bribe  of  $5000 
on  the  very  floor  of  the  city  council  by  one  of  the  members.  A 
stockholder  in  another  gas  company  tells  me  that  his  company  pays 
annually  two  per  cent,  on  its  capital  as  a  bribe  to  members  of  the 
city  council  to  ward  ofE  raids." 


•  The  leading  owners  of  a  gas  plant,  street  railway  or  other  monopoly 
are  apt  to  appoint  themselves  to  the  chief  offices,  attaching  large  salaries 
to  their  positions  as  one  means  of  concealing  excessive  profits  and  a  pleastut 
method  of  stroking  their  vanity  the  right  way — the  high  salary  being  a 
(self-created)  testimonial  to  the  great  worth  of  their  personal  services. 
Large  salaries  being  once  attached  to  the  oliices,  are  apt  to  continue  In 
greater  or  less  degree  when  the  same  offices  are  occupied  by  non-owners. 
This  process,  together  with  the  need  experienced  in  some  cases  of  paying 
high  wages  to  attract  men  of  special  ability  away  from  business  on  their  own 
account  Into  the  ranks  of  employes,  or  to  win  aggressive  men  who  might  ex- 
pose or  oppose  the  monopolists  if  not  retained  by  them,  and  the  sympathy 
naturally  felt  by  the  owners  for  the  agents  closest  to  them  and  in  fullest 
enjoyment  of  their  confidence,  have  led  to  the  payment  of  salaries  on  a  scale 
commensurate  with  the  overgrown  profits  of  monopoly. 


PUBLIC   OWXERSHIP   OF  PUBLIC  UTILITIES.  141 

Two  per  cent,  on  the  "capital"  of  a  private  gas  companj'  might 
mean  anywhere  from  6  to  20  cents  per  thousand  on  the  price  of 
gas  (not  counting  the  extremes  of  capitalization),  or  10  to  25  per 
cent,  added  to  the  fair  rate  per  thousand  feet. 

It  is  interesting  in  this  connection  to  note  the  testimony  of  Mr. 
Allen  R.  Foote,  a  former  secretary  of  the  National  Electric  Light 
Association,  who  opposes  public  ownership,  but,  nevertheless,  ad- 
duces many  facts  that  make  against  his  position.  He  says  that 
"A  public  plant  has  no  expensive  conflicts  with  the  municipal  coun- 
cils, nor  is  it  compelled  to  maintain  a  lobby,  resort  to  bribery,  give 
interest  in  stocks  and  bonds  to  politicians,  or  fee  able  attorneys  to 
watch  'strikes'  in  the  legislature  or  council,  and  to  resist  unjust 
taxation.  It  does  not  have  to  'fight'  to  obtain  new  legislation  or 
ordinance  before  it  can  extend  or  improve  its  service  or  make 
changes  in  its  motive  power.  These  sugggested  disabilities  under 
which  every  public  service  corporation  operates  to  a  greater  or 
less  degree,  none  of  which  inhere  in  the  conditions  imposed  upon 
municipalities,  tend  to  increase  capitalization,  increase  rates  of  in- 
terest and  the  cost  of  operation,  through  fixed  charges  or  otherwse, 
and  correspondingly  to  increase  the  necessary  price  charged  users 
for  the  service  rendered."' 

Mr.  Foote's  intention  is  to  prove  that  it  is  unfair  to  compare  the 
cost  in  public  and  private  plants,  but  what  he  really  shows  is  a 
few  great  defects  of  the  private  system  and  some  of  the  economies 
and  other  strong  advantages  of  public  ownership. 


THE    CO-ORDINATION    OF    INDUSTRIES. 

III.  Co-ordinafioii  deserves  a  separate  consideration  be- 
oaiise  it  is  far  more  than  a  mere  economy.  It  may  mean  $8  or 
$10  saving  per  standard  arc  to  combine  the  electric  plant  with 
the  water  works  seiwice,  but  that  is  not  all  it  means.  The 
lesson  in  harmony  and  co-operation  is  worth  more  than  the 
money — manhood  and  civilization  lie  along  that  path  as  well 
as  wealth  and  leisure.  Private  ownership  may  attain  the  bene- 
fits of  co-ordination  to  some  extent,  but  only  public  ownership 
can  realize  them  fully.  The  dangers  and  detriments  of  private 
monopoly  increase  with  combination  and  so  offset  the  benefits 
of  union.  This  is  why  the  law  is  so  careful  to  limit  the  scope 
of  franchises  and  restrict  the  consolidation  of  private  com- 
panies. Only  public  ownership  moreover  can  attain  complete 
co-ordination,  for  many  serv^ices  owned  by  the  public  now  will 


'  See  Mr.  Foote's  article  "No  Government  Should  Operate  an  Industry." 
Municipal  Affairs,  June,  1897. 


142  THE  CITY  FOR  THE  PEOPLE. 

not  be  given  over  to  private  control,  and  no  perfect  union  can 
be  made  between  public  industries  aiming  at  service,  and 
private  corporations  aiming  at  dividends.  Unification  of 
motive,  metbod  and  control  is  essential  to  complete  co-ordina- 
tion. Between  public  control  and  private  control  there  is  at 
bottom,  not  a  harmony  but  a  discord,  not  a  co-operative  im- 
pulse, but  an  impulse  of  battle. 

The  water  works  and  the  electric  light  plants  are  operated  in  co- 
ordination with  each  other  in  Aurora,  Batavia,  Paris,  La  Salle  and 
Bloomington,  111;  Columbus,  Goshen  and  Martinsville,  Ind.. 
Marshalltown,  la.;  Portsmouth,  O.;  Dunkirk,  N.  Y.,  and  doubtless 
other  places,  in  respect  to  which  I  do  not  know  the  facts  in  this  re- 
gard. 

Of  the  12  cities  now^  operating  gas  works  in  this  country,  all  but 
4  (Richmond,  Charlottsville,  Fredericksburg  and  Duluth)  have 
public  electric  plants  also,  which  axe  more  or  less  co-ordinated  with 
the  gas  works.'  In  Duluth  the  water  and  gas  plant  is  one  institu- 
tion under  a  single  manager. 

Speaking  of  water  works  Mr.  Baker  says:  "Under  municipal  own- 
ership a  harmonious  development  of  this  and  other  public  w^orks 
is  possible.  Water  mains  may  be  laid  before  streets  are  paved, 
thus  saving  the  damage  and  expense  of  tearing  up  good  pavement 
to  lay  water  pipes.  The  health  and  police  departments  may  easily 
work  with  the  water  department  for  the  public  good,  instead  of 
the  water  company  being  continually  fearful  lest  the  health  board 
declare  its  water  insanitary,  and  being  too  often  ready  to  resist 
efforts  to  secure  a  better  supply." 

Co-ordination  is  possible  not  only  between  departments  in  the 
same  city  and  town,  but  between  services  in  different  municipali- 
ties. The  Massachusetts  Metropoltan  Water  act  of  1895  provides 
for  the  co-ordination  of  the  water  supplj^  of  Boston,  Chelsea,  Ev- 
erett, Maiden,  Medford,  Newton,  Somerville,  Belmont,  Hyde  Park, 
Melrose,  Revere,  Watertown,  Winthrop,  etc.  Such  interurban  fed- 
erations are  of  the  utmost  value,  and  we  hope  they  may  have  a 
wide  development  in  the  near  future. 

In  Detroit  the  electric  light  poles  are  used  by  the  police  and 
fire  departments  and  bj-  commercial,  telephone  and  street  railway 
companies.  This  is  only  a  small  co-ordination,  but  it  is  in  the  right 
direction.    We  have  already  spoken  of  the  advantage  of  having  the 


^  This  sort  of  union  is  not  infrequent  with  private  companies  in  some 
sections  of  the  country.  Private  monopolies  unite  to  a  considerable  extent 
and  would  form  more  unions  if  the  law  did  nor  aim  to  prevent  It.  But 
there  are  two  serious  drawbacks  to  the  co-ordination  of  private  monopolies. 
1st.  It  intensifies  many  of  the  evils  of  monopoly  and  especially  Its  political 
dangers,  and  2d,  The  co-ordination  of  public  service  cannot  be  complete  in 
private  hands  for  the  fire  and  police  service,  roads,  schools,  parks,  water 
works,  etc.,  will  not  be  relegated  to  private  control,  so  that  the  only  possi- 
bility of  complete  and  perfect  co-ordination  of  the  public  service  lies  in 
public  ownership  of  all  public  utilities  under  a  thorough  plan  of  federation 
and  mutual  help. 


PUBLIC  OWNEESHIP  OF  PUBLIC  UTILITIES,  143 

street  lighting  plant  do  commercial  business  also  (see  Section  I), 
and  the  advantage  would  be  still  greater  if  all  the  public  utilities 
of  the  city  were  united  in  one  harmonious  system.  Port  Arthur, 
Ont.,  the  only  place  on  this  continent  that  has  secured  city  owner- 
ship and  operation  of  its  street  railway  system,  has  put  in  an 
electric  plant  of  1000  incandescents  in  connection  with  the  railway. 

In  Belgium  the  telephone  is  operated  with  the  telegraph  as  part 
of  the  postal  system.  This  is  true  of  the  trunk  lines  in  England, 
and  the  co-ordination  will  probably  extend  to  the  local  exchanges 
in  the  not  very  distant  future.  In  Norway,  Sweden,  Switzerland 
and  Germany  the  public  telephone  service  is  thoroughly  co-ordi- 
nated with  the  public  telegraph  and  the  public  post.  In  this  coun- 
try we  cannot  telephone  telegrams  except  by  special  arrangement, 
and  we  cannot  telephone  mail  matter  at  all. 

Among  the  benefits  that  accrued  from  making  the  telegraph  pub- 
lic in  England  is  to  be  noted  a  considerable  economy  in  rent,  fuel, 
light  and  wages  by  uniting  the  telegraph  service  with  the  mail 
service  under  a  single  control,  avoiding  useless  duplications,  using 
the  same  offices,  the  same  collecting  and  delivery  agencies,  and 
often  the  same  operatives  for  both  services.^ 

PUBLIC  PROFITS. 

IV.  The  Profits  of  a  public  enterprise  go  to  the  people 
and  not  into  the  pockets  of  a  few  individuals.  A  city  owning 
its  water  or  light  plant  or  street  car  lines  may  run  them  on 
rates  sufficient  to  yield  a  profit,  which  goes  into  the  public 
treasury  to  reduce  taxation,  or  add  to  the  public  resources,  or 
it  may  operate  the  works  at  rates  too  low  to  yield  a  surplus, 
in  which  case  a  fund  equivalent  to  the  dividends  and  profits  of 
the  private  companies,  goes  to  the  people  in  the  shape  of  lower 
rates.* 

The  great  majority  of  cities  and  toAvns  suppl3-ing  water,  gas, 
.  electricity,  telephone  service  or  transportation  to  the  citizens,  do 
so  at  rates  sufficient  to  3'ield  a  profit. 

The  Philadelphia  water  works  turn  into  the  public  treasury 
$1,302,000,  or  about  4  per  cent,  a  year  on  the  value  of  the  plant  above 
expenditures  (tho  the  average  receipts  are  but  3  cents  per  1000 
gallons),   $900,000  clear  profit  above  depreciation,   there  being   no 


»  See  Arena,  Vol.  17,  p.  29. 

•  For  a  fine  discussion  of  a  related  topic  showing  that  cities  collecting 
garbage,  laving  pavements  and  constructing  work  by  direct  employment  01 
labor,  make  therebv  a  large  saving  on  the  cost  of  doing  the  same  work 
hy  contract  in  the  same  or  neighboring  cities,  see  "Cit.v  Government,  •  Vol. 
7,  No.  3,  pp.  53,  56-7.  The  experiences  cited  by  Mayor  I'erry  of  Orrand 
Rapids  and  H.  J.  Gondon  of  New  York,  in  the  papers  referred  to,  prove  that 
tho  direct  method,  properly  used,  saves  the  profits  of  contractors  and  tne 
costs  ftitaihd  hy  their  frauds  and  blunders. 


144  THE  CITY  FOR  THE  PEOPLE. 

interest  to  J}aj.  The  works,  moreover,  furnish  free  service  to 
the  citj-,  which,  at  the  meter  rate  cliarged  by  the  city,  would  be 
worth  $200,000  by  the  Chief's  estimate.  At  private  rates  the  city 
would  pay  $555,000  for  the  11,100  fire  hydrants  alone  ($50  per  hy- 
drant is  the  price  paid  the  private  company  in  Indianapolis),  and 
$50,000  to  $100,000  for  street  sprinkling,  sewer  flushing,  etc. 
So  that  the  city  treasury  is  fully  1%  millions  ahead  thru  the  public 
ownership  of  the  water  supply.  If  we  include  the  savings  to  con- 
sumers, who  pay  a  little  less  than  3  millions  now  at  3  cents  per 
thousand  gallons  (nearly  a  million  of  it  being  clear  profit  to  the 
city),  and  would  probably  pay  two  or  three  times  as  much  to  a 
private  company  (the  receipts  in  Indianapolis  are  8  cents  per  thou- 
sand gallons),  we  shall  see  that  the  total  saving  to  the  people  of 
Philadelphia  is  probably  not  less  than  4  millions  a  year,  and  maybe 
a  good  deal  more  than  that.  Her  gas  works  paid  for  themselves 
out  of  earnings,  and  at  the  time  of  the  lease,  with  gas  at  $1,  were 
yielding  over  $400,000  a  year  cash  profits  above  operating  cost, 
which  was  more  than  enough  to  cover  depreciation  and  cost  of 
collections,  Avater,  etc.,  leaving  as  clear  profit  the  700,000,000  feet  of 
free  gas  annually  supplied  to  city  buildings,  etc.,  v(7orth  $700,000, 
or  7  per  cent,  on  the  value  of  the  w^orks.  A  few  years  ago,  when 
the  charge  was  $1.50  per  thousand,  the  gas  receipts  of  Philadel- 
phia paid  for  the  large  amount  of  gas  burned  in  the  streets  and 
public  buildings,  and  also  turned  about  $1,000,000  cash  into  tne 
public  treasury  everj^  year. 

In  New  York  city  the  public  water  works  turn  $1,530,000  cash  into 
the  public  treasury  after  paying  interest  and  cost  of  operation. 
The  free  public  service  at  current  rates  would  surely  be  worth 
$600,000,  making  a  total  profit  of  $2,130,000,  or  $1,500,000  after  allow- 
ing for  depreciation. 

Chicago's  water  works  yield  a  cash  profit  of  $1,483,000  above  ope- 
ration and  interest  on  the  water  debt.  This  with  free  service  that 
would  probably  cost  $700,000  or  more  if  obtained  from  a  private 
company,  indicates  a  clear  profit  of  nearly  $2,000,000  above  depre- 
ciation.' 

We  have  spoken  already  in  Section  I  of  the  profits  of  public  elec- 
tric plants  that  do  commercial  lighting — profits  sometimes  suffi- 
cient even  in  small  communities  to  cover  the  whole  expenses  of 
the  plant  and  give  the  city  its  street  lamps  free.  In  large  places 
municipal  works  doing  all  the  commercial  lighting  can  cut  the 
prevailing  private  rates  in  two  and  still  more  than  pay  all  costs, 
tho  lighting  the  streets  and  public  buildings  free. 

Every  one  of  the  twelve  cities  operating  public  gas  works  receives 
a  considerable  margin  above  operating  cost,  and  all  but  Middle- 
borough  make  a  good  profit  above  operation  and  depreciation,  tho 
Hamilton  has  to  pay  her  profits  over  to  the  capitalists  for  interest.' 


'  For  numberless  other  cities  and  towns  making  a  profit  on  water,  tho 
selling  at  very  reasonable  rates,  see  Baiter's  Manual  of  American  Water 
Worlis,  1897. 

"  For  the  details  as  to  public  gas  profits  see  Municipal  Monopolies  Chap. 
«>n   Gas,  1898,  and  Bemis  on  Municipal  Gas,   1891,   pp.  55,  87,  etc.    For  1890 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  145 

The  Wheeling  gas  works  have  paid  for  themselves  out  of  earnings 
on  a  charge  of  75  cents  per  thousand  feet,  and  are  helping  to  pay 
for  the  electric  light  works.  The  public  gas  works  of  Richmond 
paid  for  themselves  over  fifteen  years  ago,  and  the  works  of  Hen- 
derson, Bellefontaine,  Alexandria,  Danville  and  Charlottesville  have 
also  made  their  cost  and  paid  off  their  debt  out  of  earnings,  and 
some  of  them  a  good  deal  more.  The  Philadelphia  gas  works  paid 
for  themselves  long  ago  if  they  are  credited  with  the  actual  value 
of  the  gas  they  furnished  the  city  free  of  charge.' 

The  English  public  gas  works  make  a  good  profit  also.  (See  Sec- 
tion I.)  Take  one  case.  When  Nottingham  took  over  the  gas  plant 
the  price  was  831/2  cents  per  thousand.  The  city  lowered  it  to  70, 
then  62,  and  after  a  few  years  to  54  cents.  The  consumption  rose 
from  500  million  feet  to  1106  million,  and  the  profit  rose  from 
$25,000  to  $165,000  a  year.  The  rate  was  lessened  16  per  cent,  at  the 
start,  and  in  8  years  the  price  was  lowered  25  per  cent,  more,  con- 
sumption more  than  doubled  and  profits  increasd  600  per  cent. 

LAKGEB  FACILITIES. 

V.  Enlarfjement  and  Extension  of  Facilities  as  public 
need  may  require  is  a  distinguishing  characteristic  of  public 
enterprise. 

Private  gas  and  water  companies  lay  their  mains  only  in  streets 
that  will  yield  a  profit.  Public  works  put  their  pipes  into  any 
street  where  there  is  a  reasonable  demand  for  the  service.  Private 
schools  and  turnpikes  go  only  where  they  will  "pay" — can't  go  any- 
where else  except  on  the  basis  of  charity;  but  public  schools  and 
roads  go  into  everj-  district  where  there  are  children  to  educate  or 
people  to  travel. 

Mr.  H.  A.  Foster,  tho  opposing  public  ownership,  in  a  review  of 
34  towns  having  public  electric  plants,  admits  that  "somewhat  over 
half  the  number  are  places  where  it  is  doubtful  if  a  commercial 
or  private  plant  could  be  made  to  pay  under  any  circumstances."  ' 

In  cities  and  towns  of  every  size,  with  or  without  public  lighting 
plants,  it  is  ])ublic  enterprise,  not  private,  that  lights  the  streets  and 

Professor  Remis  found  the  cash  profits  above  operation  ran  from  6  to  2414 
per  cent,   on   the  value  of  the  plant.     In  round  numbers 

Hamilton  6,  Wheel iiif?  10^  {^t''''*'^'''P, '.li''*^' 

DauvilleS^  Hende  son  lOi^-f  Riehmond  19^ 

(harlottesville  8%'.  Bell^f..ntaiuo  y>4^r  Alexandria  U>4rc 

» I  believe  it  would  be  better  if  each  department  were  credited  every  year 
with  the  value  of  all  the  service  it  renders.  If  the  totals  of  receipts  and 
profits  included  such  values  and  the  accounts  were  balanced  by  »  PayjPfot 
to  the  public  good  also  including  said  values,  the  people  ?;o"ld  understand 
more  clearly  the  full  value  of  their  public  worlds  It  would  also  be  a  good 
thing  if  each  department  chief,  as  far  as  poss.be.  would  close  ^is  report 
with  a  comparative  statement  of  prices  and  results  in  .^'s  own  works  and 
other  public  and  private  enterprises  of  similar  character  in  the  same  locality 
or  neighboring  communities.  He  might  be  given  authority  to  call  for  persons 
and  papers  to  get  the  facts  from  private  companies.  The  bottom  facts  are 
what  we  want  everywhere  and  all  the  time. 

'  Electrical  Engineer,  Sept.  5,  1894. 
10 


146  THE  CITY  FOR  THE  PEOPLE. 

alleys,  and  if  it  were  left  to  private  companies  the  streets  of  the 
poor  and  the  alleys  if  the  slums  would  be  left  in  darkness — the  very 
places  most  in  need  of  light  for  safety  in  travel  and  as  a  police 
measure  to  prevent  crime,  would  be  without  the  protecting  iuflu- 
ence  of  the  street  lamps.- 

Our  postal  service  goes  to  every  hamlet  in  the  land,  but  the  tele- 
phone monopoly  confines  itself  to  cities  and  densely  populated  dis- 
tricts, where  the  profit  will  be  large.  In  England,  also,  where  the 
local  telephone  service  has  been  in  the  hands  of  a  licensed  and 
protected  national  monopoly,  small  towns  and  country  districts 
have  remained  for  the  most  part  without  the  service.  But  in  Nor- 
way, Sweden,  Luxemburg  and  Switzerland  the  public  telephone 
has  netted  the  rural  districts  and  become  almost  as  universal  as 
the  post.' 

When  England  bought  out  the  telegraph,  the  "government's  first 
move  was  the  rapid  extension  of  the  lines  into  districts  hitherto 
unprovided  with  telegraph  service,  and  the  reduction  of  the  tariff." 
The  miles  of  line  w^ere  increased  from  5601,  under  private  owner- 
ship in  1869,  to  15,000  under  public  ownership  in  1870.  The  public 
telegraph  developed  "large  additional  facilities  by  opening  more 
offices,  locating  offices  more  conveniently  and  making  every  post- 
office  and  post-box  a  place  where  a  telegram  may  be  deposited  to 
be  taken  to  the  nearest  telegraph  office  for  transmission."* 

MORE  BUSINESS. 

VI.  Increase  of  Business  is  one  of  the  marked  advantages 
of  public  ownersliip.  Lower  rates  and  increased  facilities  en- 
large the  volume  of  business,  and  the  natural  tendency  of  the 
people  to  patronize  a  public  enterprise  more  cordially  than  a 
private  one  has  a  further  effect  in  the  same  direction.  And 
the  larger  output  means  a  fuller  satisfaction  of  the  wants  of 
the  community  and  a  lessened  cost  of  production  per  unit  of 
service  and  per  individual  served. 

In  1889  the  water  commisssioners  of  Syracuse,  N.  Y.,  investigated 
250  towns,  and  found  that,  even  where  prices  were  the  same,  there 


■•"It  must  be  noted  however,  that  while  public  ownership  is  apt  to  put 
water  mains,  gas  pipes,  light  wires,  etc.,  wherever  there  is  reasonable  need 
for  them,  yet  where  the  voters  and  taxpayers  are  not  directly  and  personally 
interested  in  the  service,  as  in  the  case  of  schools,  the  facilities  provided, 
the  far  in  excess  of  what  private  enterprise  would  probably  afford,  are 
nevertheless  considerably  below  the  reasonable  need. 

'  Germany  has  not  been  so  successful  in  the  extension  of  the  telephone 
to  town  and  country,  because  she  has  made  the  mistake  of  adopting  a  uni- 
form rate  of  $35.70  which  is  fair  enough  in  the  larger  cities  but  is  prohibi- 
tive in  the  country.  To  charge  the  same  rate  for  local  telephone  service  in 
a  farm  district  or  a  town  of  two  or  three  thousand  people,  as  in  a  city  of 
a  million  and  a  half  Is  an  absurdity.  A  uniform  rate  in  the  post  is  good 
and  a  uniform  rate  for  interurban  telephone  service  would  be  all  right,  but 
a  uniform  rate  for  local  exchanges  Is  by  no  means  so  easily  justified  and 
If  such  a  rate  is  to  be  adopted  it  should  be  the  town  rate,  not  the  big  city 
rate. 

*  The  Arena,  Vol.  17,  p.  29. 


PUBLIC  OWNEBSHIP  OF  PUBLIC  UTILITIES. 


147 


was  a  mucli  greater  use  of  water  in  towns  supplied  by  public  works 
than  in  towns  supplied  by  private  companies.  The  statistics  of  the 
50  largest  cities  in  the  country,  collated  by  the  eleventh  census, 
showed  the  same.  I  put  the  Manual  of  American  Water  Works 
(1897)  and  tables  of  population  by  census  returns  and  later  esti- 
mates into  the  hands  of  an  assistant,  with  instructions  to  find  the 
average  consumption  per  family  in  all  the  large  cities  having  pri- 
vate works  returning  data  from  which  the  fact  could  be  ascer- 
tained, and  then  find  the  consumption  in  an  equal  number  of  large 
cities  having  public  plants  and  scattered  over  the  country  as  widely 
as  the  private  systems.    The  following  table  shows  the  results:  * 

Consumption  of  Water  with  Public  and  Private  Service. 


Averagp  Daily  Consiimption 
per  Family  in  Gallons. 

Private 
Works. 

Public 
Works. 

276 

430 

300 

450 

600 

160 

liO 

650 

170 

320 

200 

220 
1167 

8.50 

7P0 

500  (? 
1140 

530 

olO 

375 

1373            Buffalo. 

950 Wheeling. 

1000             Philadelphia. 

700                               Nashville 

San  Francisco 

Mobile „.. 

1000            : Washington. 

630                             .  Richmond 

Charleston,  S.  C 

fino            ' Boston. 

800             Albany. 

600            Chicago. 

600            Cleveland. 

300                ...-Kansas  ritr    Mn 

500 

I61I6 
1000 

St.  Louis. 

Colorado  Springs, 

Oakland,            " 

Itino 
700 

10(M) 
920 
712 
700 

Pitisburg 

Elizabeth,  N.  J 

Elmira,  N.  Y 

Troy,  N.  Y. 

Total  averages.- 

486 

887 

The  left  column  includes  all  cities  registered  as  over  30,000  popu- 
lation in  1890  and  having  private  works  which  made  sufficient  re- 
turns to  permit  the  estimate  of  consumption  per  family  to  be  made, 
the  private  companies  supplying  seven  cities  of  the  specified  rank 
made  no  returns  of  the  average  consumption,  and  one  made  very 
incomplete  returns.  In  the  further  case  of  Omaha  the  average  had 
to  be  estimated  from  the  maximum  and  minimum  consumption. 

Running  over  the  tables  of  ownership  and  keeping  in  mind  both 
population  and  location,  a  list  was  made  of  comparable  cities  hav- 
ing public  water  works,  and  the  right  hand  column  contains  the 
first  20,  for  which  the  Water  Manual  and  the  population  estimates 
afforded  the  requisite  data,  23  public  cities  being  looked  at  in  get^ 


'  The  figures  In  the  Water  Manual  refer  to  '95  and  '96,  and  the  family 
consumption  here  stated  must  not  be  taken  as  absolutely  precise,  for  -he 
population  for  those  vi-ars  is  not  certainly  known.  The  estimates  of  local 
authorities  and  statistical  experts  are.  however,  likely  to  err  equally  in 
respect  to  the  cities  in  the  left  column  and  In  respect  to  those  In  the  riarht. 


148  THE  CITY  FOR  THE  PEOPLE. 

ting  be  said  20,  and  the  facts  for  three  of  the  attempted  cities 
be.ug  found  incomplete.  Pittsburg-  has  private  works  as  well  at. 
^ydblic,  but  as  %  of  the  service  is  public  I  have  allowed  it  to  stand. 

In  respect  to  gas,  Professor  Bemis  found  that  the  proportion  ot 
consumers  to  population  was  20  per  cent,  larger  in  cities  owning 
public  works  than  in  the  Massachusetts  cities  with  private  works 
selling  at  about  the  same  average  pri'^es." 

On  the  Brooklyn  Bridge  "when  the  railway  fare  was  cut  in  two 
in  1885,  the  traffic  at  once  more  than  doubled,  and  the  receipts,  in- 
stead of  falling  off,  were  considerably  increased."  ° 

Glasgow  had  a  similar  experience  with  her  street  railways  when 
she  began  to  operate  them.  The  fares  were  cut  one-third  and  the 
business  was  doubled  in  about  two  years. 

When  England  took  the  telegraph,  in  1870,  pushed  the  lines  into 
rural  districts  and  cut  the  rates  1/3  to  Yz,  the  number  of  messages 
increased  50  per  cent,  and  the  amount  of  business  done  (or  number 
of  word-miles)  about  doubled  the  first  year.  By  the  middle  of 
1871  (about  a  year  after  the  postal  telegraph  had  got  things  ar- 
ranged in  the  new  order  and  was  well  prepared  for  work)  even 
the  number  of  messages  was  nearly  double  what  it  had  been  under 
private  ownership,  and  the  average  length  of  the  messages  was 
A'ery  much  greater,  partly  on  account  of  the  extremely  Ioav  rates 
for  press  work  under  the  postal  tariff. 

Since  18C9  the  per  capita  use  of  the  telegraph  has  grown  six 
times  more  rapidly  in  Great  Britain,  under  public  ownership,  than 
in  tliis  country,  under  private  ownership.  In  1869  there  was  about 
one  message  to  five  persons  in  Great  Britain,  and  one  to  three  per- 
sons in  the  United  States.  Our  telegraph  was  considerably  ahead 
of  the  English  when  both  were  in  private  hands,  but  when  theirs 
became  public  it  speedily  went  ahead  of  ours,  so  that  now  the  mes- 
sages are  nearly  two  to  each  person  in  Great  Britain  and  less  than 
one  to  each  person  here.* 

The  quality  of  the  new  business  is  also  specially  worthy  of  note. 
The  result  of  public  operation  "was  a  vast  and  immediate  increase 
in  the  papular  use  of  the  telegraph.  Social  messages  and  newspaper 
traffic  developed  enormously.  The  telegraph  became  something 
more  than  an  aid  to  speculation,  and  began  to  be  of  use  to  the 
people."  '  The  president  of  the  Western  Union  Telegi'aph  Company, 
testifying  before  committees  of  Congress  a  few  years  ago,  said  that 
"less  than  1  per  cent,  of  the  people  used  the  telegraph"  in  the 
United  States,  and  that  only  "about  5  or  (5  per  cent,  of  the  messages 
were  social."  Afterwards  he  said  "46  per  cent,  of  the  total  business 
is  purely  speculative — stock  jobbing,  wheat  deals  in  futures,  etc.; 


'  Municipal  Gas,  p.  23. 

'  Dr  Max  West  iu  Municipal  Monopolies,  p.  407,  citing  Report  of  P>ridgo 
Trustees,  ISS'i,  pp.  4-10.  The  Dr.  says,  "There  -was  at  the  same  time  no  In 
crease  In  operating  expenses  of  the  bridge  as  a  whole,  but  a  slight  decrease. 
The  operating  expenses  of  the  railwa.v  Itself  are  not  separately  reported, 
but  they  undoubtedly  comprise  all  the  large  Items." 

*  See  facts  and  references  in  The  Arena  for  Dec,  la^ifi.  pp.  20-22. 

»  The  Arena,  Vol.  17,  pp  17-21. 


PUBLIC   OW:S^ERSHIP  OF   PUBLIC  UTILITIES.  149 

,34  per  cent,  legitimate  trade;  12  per  cent,  press;  and  8  per  cent, 
social."  In  Europe,  with  the  public  telegraph,  "two-thirds  of  all 
de.spatehes  are  on  social  or  family  matters."  In  Belgium,  with  her 
low  public  rates,  63  per  cent,  of  the  messages  are  on  social  matters.' 
The  increased  use  of  a  public  service  by  the  mass  of  the  people 
is  one  of  the  strongest  recommendations  of  public  ownership. 

NO  SECRET   REBATES  OR  BUSINESS  PREFERENCES. 

VII.  More  Impartiality  in  the  treatment  of  custoiuers  and 
/f^9.<?  friction  between  consnmer  and  snppl5'er  is  apt  to  exist  in 
jniblic  service  than  in  private.  The  consumer  is  a  part  owner 
iu  the  public  plant,  and  partners  stand  a  better  chance  of  good 
treatment  than  outsiders.  On  the  other  hand  the  consumer 
feels  that  the  public  service  is  his  and  he  behaves  better  toward 
it  than  toward  a  private  monopoly  that  he  believes  to  be  over- 
charging him  and  playing  the  master  with  him  and  his  agents. 
As  a  matter  of  fact  whichever  way  you  turn  you  will  find  some 
private  monopoly  giving  free  service  for  private  purposes  to 
some  persons  and  overcharging  others,  making  secret  rebates 
and  other  unjust  discriminations  in  private  business  to  the 
gTeat  emolument  of  some  individuals  and  the  ruin  of  others, 
but  where  will  you  find  such  things  in  works  that  are  really 
public?  Works  in  which  the  people  have  the  ownership,  and 
over  which  they  have  effective  control  do  not  establish  secret 
rebates  or  discriminate  unjustly  in  any  way  in  the  private 
business  of  their  customers.^ 


'  Arena.  Vol.  15,  pp.  411-12.  U.  S.  Sen.  Rep.  577,  48th  Congres.s.  1st  Sess. 
pp.  15,  16  and  Part  2,  pp.  63,  244;  Bingham  Hearings,  1890.  pp.  41,  .^6;  Housp 
Rep.,  114,  41st  Congress,  2d  Sess.,  p.  42;  I.  T.  U.  Hearings.  3894.  p.  IT 

•  There  is  of  course  a  discrimination  between  public  business  and  private, 
which  is  perfectly  just  and  proper.  Public  street  cars  may  carry  policeman 
on  duty  free  of  charge,  and  the  post  office  may  give  the  franking  power  to 
senators  and  representatives,  etc..  to  facilitate  public  business,  more  than 
the  value  of  this  service  being  collected  by  general  taxation. 

The  reader  will  note  the  claim  for  public  ownership  is  more  impartiality, 
not  perfect  impartiality,  there  is  a  sort  of  distinction  In  favor  of  public 
business  which  does  not  seem  to  me  to  meet  the  highest  ideals.  As  for 
example,  the  charging  of  rates  for  water,  gas,  electric  light,  etc.,  sufficient 
to  cover  the  cost  of  the  water,  and  light  used  in  the  streets  and  public 
buildings,  so  that  the  municipality  gets  its  service  at  the  expense  of  the 
body  of  citizens  who  consume  water,  gas,  etc.  Except  where  higher  con- 
siderations intervene  to  lift  the  matter  above  the  financial  plain  I  believe 
the  truest  plan  is  to  make  each  service  pay  for  itself.  Gas  ijonsumers  are 
only  a  pai't  of  those  benefited  by  the  street  lamps.  The  whole  body  of  tax- 
payers should  contribute  to  the  latter.  Nevertheless  this  distinction  in  favor 
of  public  service  has  none  of  the  absolutely  pernicious  features  that  ni;irk 
the  discriminations  of  private  monopoly  betiQccn  individuals.  And  even  with 
the  burden  of  paying  for  the  public  service  the  customers  of  city  works  are 
vastly  better  off"  in  pocket  and  every  other  way  than  under  the  reigu  of 
private  monopoly. 


160  THE  CITY  FOB  THE  PEOPLE. 

STJPEiBIOB  SAFETY. 

VIII.  PuMic  Safety  is  a  natural  aim  of  public  service, 
more  or  lees  perfectly  fulfilled  according  to  the  character  of  the 
oificers  in  charge  of  the  service.  A  striking  illustration  of  the 
difference  in  safety  that  may  result  from  a  difference  of  aim  in 
this  respect,  is  to  be  found  in  the  railway  statistics  collected  a 
few  years  ago  by  Professor  Ely,  which  proved  that  of  each 
million  of  railroad  passengers  6  times  as  many  are  killed  in 
the  United  States  under  private  control  as  in  Germany  under 
public  control.  The  public  railway  over  Brooklyn  Bridge  has 
a  remarkable  record  for  freedom  from  accident.  It  has 
handled  500,000,000  passengers  wuth  only  2  fatal  injuries 
(one  to  a  passenger  and  one  to  a  trainman),  and  one  other  ser- 
ious injury  to  a  passenger.  The  latest  report  in  my  possession 
which  summarizes  the  accidents  on  the  street  railways  of  New 
York  and  Brooklyn  shows  47  killed  and  129  injured,  the  total 
passengers  carried  during  the  year  being  423,149,000 — a  ratio 
of  accident  per  million  passengers  that  is  70  fold  greater  than 
on  the  public  line. 

FULFILMENT  OF  LAW. 

IX.  Obedience  to  Laic  is  more  likely  to  characterize  public 
service  than  private  monopoly.  A  business  owned  and  con- 
trolled by  the  law-maker  is  more  apt  to  conform  to  the  law- 
makers will  (one  expression  of  which  is  the  law)  tljan  a  busi- 
ness owned  and  controlled  by  one  whose  interests  are  largely 
adverse  to  those  of  the  body  of  citizens  who  make  the  law 
directly  or  thru  representatives  that,  when  true  to  their  trust, 
embody  the  citizens'  interests  in  the  law  and  the  policy  of  the 
government. 

SUPERIOR  SERVICE. 

X.  Better  Service  in  every  respect  is  likely  to  accompany 
public  ownership.  Public  ownership  is  not  an  absolute  guar- 
antee of  good  service,  but  a  public  monopoly  has  at  least  no 
interest  opposed  to  good  service.  A  business  is  apt  to  be  man- 
aged in  the  interests  of  its  owners.    If  the  people  own  the  ser- 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  151 

vice  they  will  be  more  apt  to  get  what  they  want  than  under 
an  antagonistic  ownership.  The  servants  of  the  people,  with 
a  good  civil  service,  will  be  more  apt  to  do  the  people's  will, 
than  the  serv^ants  of  a  company  whose  will  is  opposed  to  the 
people  and  who  are  in  the  business  to  get  all  they  can  and  give 
no  more  than  they  must. 

We  have  found  in  New  York  that  street  arcs  supposed  to  be  2000 
candle  power  by  contract,  were  really  only  a  little  more  than  1000 
c.  p.  Wheeling's  public  arcs,  on  the  other  hand,  show  an  actual 
candle  power  of  2500,  or  500  c.  p.  above  the  standard.  South  Nor- 
walk's  sub-arcs  show  1400  c.  p.,  or  200  above  the  usual  sub-arc 
specification.  Detroit,  with  her  public  electric  plant,  gets  steadier 
and  more  brilliant  lights  than  those  obtained  from  the  private  com- 
panies. The  Report  for  1898,  p.  6,  says  that  "The  quality  of  light 
furnished  has  been  uniformly  of  the  full  standard  of  2000  candle 
power,  which  is  better  than  was  found  practicable  to  obtain  of  con- 
tractors." Professor  Commons,  after  comparing  a  large  number 
of  public  and  private  plants,  says  the  indications  are  that  "the 
gfreat  majority  of  the  300  cities  and  villages  now  furnishing  light 
are  actually  getting  better  service  at  less  cost  than  those  which  de- 
pend upon  private  companies."  ' 

Professor  Bemis  found  that  the  quality  of  gas  supplied  by  public 
plants  was  superior  on  the  average  to  that  of  the  gas  supplied  by 
the  private  companies  of  Massachusetts,  judging  by  the  candle 
power.'  One  of  the  strongest  contrasts  I  have  met  with  under  this 
head  is  that  between  the  public  pipe  line  of  the  Toledo  gas  works 
and  the  private  pipe  line  of  the  Standard  (Oil)  Gas  Company.  "The 
city  trustees  built  a  better  pipe  line  than  private  enterprise  had 
laid.  The  private  line  was  of  cheap  iron  of  14-feet  lengths,  while 
Toledo's  was  in  24-feet  pieces.  One  of  the  private  lines  was  laid 
with  rubber  joints  and  in  shallow  trenches,  in  many  places  of  not 
more  than  plough  depth.  It  leaked  at  almost  every  joint;  ite  course 
could  be  traced  across  the  fields  by  the  smell  of  gas  and  the 
blighted  line  of  vegetation.  There  were  frequent  explosions  from 
the  escaping  gas;  lives  and  property  were  much  endangered.  The 
city  line  was  laid  with  lead  joints,  and  had  every  device  that  en- 
gineering experience  could  suggest  for  its  success,  and  was  so  con- 
structed that  it  could  be  cleaned  or  repaired,  and  freed  from  liquids 
interfering  with  the  flow  of  gas,  without  shutting  off  the  supply — 
features  the  other  pijje  had  not."* 

With  the  Glasgow  tramways,  the  Trodhjem  telephone  and  the 
English  telegraph,  improvement  of  service  is  one  of  the  marked 
results  of  public  ownership.* 


'  Municipal  Monopolies,  p.  173. 

*  Municipal  Gas  (Econ.  Assoc),  p.  24. 

»  Lloyd's   "Wealth  against   the  Commonwealth,"   p.   360. 

*  See  below,    "Experience."    General   Francis   A.   Walker  told  the   writer 
that  according  to  his  experience  the  service  on  the  English  lines  was  superior 


1  52  THE  CITV  FOR  THE  PEOPLE. 

The  self-interest  of  a  private  coinpany  leads  it  to  make  as  much 
profit  as  possible.  And  the  same  self-interest  of  a  public  plant  leads 
it  to  render  good  service  at  as  lo^v  cost  as  is  consistent  with  the 
proper  treatment  of  labor  and  the  development  of  civilization. 


HONEST   ACCOUNTS. 

XI.  TrMC  Aceoimts  constitute  one  of  the  great  advantages 
of  public  ownership.  The  accounts  of  public  plants  are  not 
always  perfect.  Like  the  accounts  of  private  companies  they 
frequently  omit  any  estimate  of  depreciation,  but  unlike  the 
statements  of  private  companies  the  books  of  public  works 
show  the  true  cost  of  construction  and  expenses  of  operation. 
The  entries  are  honest  as  far  as  they  go.  I  have  yet  to  hear  of 
a  single  false  entry  in  the  books  of  a  public  business  except  by 
an  occasional  defaulter,  an  animal  not  yet  extinct  in  either 
public  or  private  service.  In  the  ordinary  routine  of  busine?& 
false  entries  are  practically  unknown  in  public  works,  while 
every  investigation  of  private  monopolies  gives  abundant  proof 
of  the  prevalence  of  false  accounting,  and  even  the  laws  re- 
quiring sworn  returns  appear  to  be  powerless  to  bring  the  big 
monopolies  down  to  the  truth.  Professor  Bemis,  the  cele- 
brated gas  specialist,  says:  "Gas  companies  have  various  w^ays 
of  concealing  their  profits,  even  in  the  reports  they  are  forced 
to  make  to  the  Massachusetts  Gas  Commission.  Not  only  are 
exorbitant  salaries,  legal  fees,  and  'legislative'  or  'advertising' 
expenses  often  paid,  but  directors  sometimes  justify  their 
title  by  'directing'  the  money  of  their  corporations  into  their 
own  pockets  through  excessive  prices  for  oil,  acetylene  patents, 
or  other  properties  in  which  they  are  personally  interested. 
One  company  may  thus  buy  from  another  for  60  cents,  or  even 


to  the  service  here,  and  Professor  R.  T.  Ely  says  the  same  in  respect  to  the 
German  service.  Our  telegrams  are  subject  to  much  delay.  Speculative 
despatches  have  the  right  of  way,  and  everything  else  even  the  business 
of  the  Federal  Government  has  to  wait.  Our  telegraph  service  is  defective 
In  other  ways,— it  is  inaccurate,  uses  old  methods  instead  of  the  newest  and 
best,  divulges  the  secrets  entrusted  to  it.  refuses  efficient  service  to  the 
government,  Is  not  co-ordinated  with  the  telephone,  and  is  marred  by  unjust 
discriminations. 

England,  France  and  Germany  have  adopted  new  inventions  while  the 
W'estern  Union  has  repressed  them  and  locked  them  up  in  order  to  get  the 
wear  out  of  the  existing  plant.  No  complaint  is  made  In  Europe  of  discrimi- 
nation, lack  of  secrecy,  slowness,  or  inaccuracy  (though  such  complaints 
were  common  in  Great  Britain  before  the  people  purchased  the  telegraph^. 
The  Government  gets  efHcient  service  at  cost  and  the  telegi-aph  Is  co- 
ordinated with  the  telephone  to  the  great  convenience  of  the  public. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  153 

a  dollar,  in  the  holder,  gas  which  it  can  itself  make  for  20  to 
30  cents."^'' 

Private  works  have  a  very  strong  motive  to  manipulate 
their  accounts.  In  public  works  this  motive  is  absent.  They 
cannot  understate  expenses  for  the  works  must  claim  enough 
to  cover  the  actual  cost.  There  is  no  wish  to  overstate  ex- 
penses for  the  credit  of  the  officers  depends  on  making  a  good 
showing  for  the  works.  Besides  all  this  the  publicity  that  sur- 
rounds a  municipal  undertaking  is  an  additional  guarantee  of 
true  accounting. 

NO  INFLATED  CAPITALIZATION. 

XII.  No  Watered  t<tock  is  issued  by  public  works.  The 
cost  may  be  too  high  when  private  works  are  purchased  by 
city  or  state,  but  care  is  usually  taken  to  write  off  the  excess 
as  fast  as  possible.  Xo  fictitious  capital  is  created  by  public 
enteri>rise,  and  it  does  its  best  to  banish  that  created  by  private 
monopoly.  This  is  a  benefit  the  importance  of  which  cannot 
easily  be  overestimated. 

NO  STOCKS  TO  GAMBLE  WITH. 

XIII.  PuhHc  Oicnership  Tends  to  Diminish  Speculation 
and  Gambling.  This  is  too  obvious  to  need  extended  com- 
ment. Every  time  a  private  monopoly  is  transferred  to  the 
public  a  body  of  stock  ceases  to  exist  and  the  materials  of 
gambling  and  speculation  are  diminished  by  that  amount. 

LESS  FRAUD  AND  CORRUPTION. 

XIY.  Public  Ownership  Tends  to  Diminish  Fraud  and 
Corruption  by  removing  one  of  their  principal  causes.  It  is 
not  the  public  water,  gas  and  electric  plants  that  buy  up  voters 
and  keep  their  lobbies  at  city  hall,  but  the  private  companies. 
It  is  not  the  jjublic  post  but  the  private  railways  that  maintain 
shrewd  lobbyists  in  Washington  and  every  State  capitol. 


•  "Municipal  Monopolies,"  pp.  588-9. 


154  THE  CITY  FOB  THE  PEOPLE. 

One  of  the  greatest  advantages  of  public  ownership  is  its 
tendency  to  relieve  our  government  of  corrupting  relations 
with  men  of  wealth  and  giant  corporations.  Rich  and  influen- 
tial citizens  whose  interests  as  investors  in  gas  and  electric 
plants,  street  railways  and  other  franchises  prompt  them  to 
weaken  and  corrupt  the  government,  or  at  least  to  wink  at  cor- 
ruption on  behalf  of  the  companies  in  which  they  are  inter- 
ested, would,  under  public  ownership  have  no  financial  inter- 
ests at  stake  except  as  consumers  and  taxpayers,  which  would 
lead  them  to  desire  good  government  and  efficient  administra- 
tion. As  part-  owners  in  private  railways  and  gas  works  their 
financial  interests  are  opposed  to  good  government,  but  as 
jiart  owners  in  public  railways  and  gas  works  their  financial 
interests  would  demand  good  government.  Few  matters  stated, 
in  this  chapter  are  more  important  than  this  change  of  interest 
and  civic  relation  in  men  of  wealth  and  power,  for,  as  Mayor 
Swift  of  Chicago  told  the  Commercial  Club  of  that  city,  De- 
cember 28,  1896,  it  is  precisely  those  men  of  wealth  and  in- 
fluence who  are  responsible  for  the  corruption  of  municipal 
government.  "Who  bribes  the  Common  Council?"  said  the 
Mayor.  "It  is  not  the  men  in  the  "common  walks  of  life.  It  is 
you  representative  citizens,  you  capitalists,  you  business  men." 

In  studying  the  effect  of  public  electric  works  I  have  found 
many  instances  in  which  the  purification  of  municipal  polities 
was  clearly  aided  by  .the  change  to  public  ownership.  And 
Professor  Bemis  after  examining  the  history  of  the  gas  works 
in  Philadelphia,  Eichmond,  Wheeling,  and  all  the  other  cities 
having  public  works  in  1891,  declared  that  experience  in  every 
one  of  those  cities,  not  excepting  Philadelphia,  had  shown  that 
public  ownership  tends  to  diminish  political  corruption. 

Professor  Commons  says:  "I  maintain  that  nine-tenths  of 
the  existing  municipal  corruption  and  inefficiency  result  from 
the  policy  of  leaving  municipal  functions  to  private  parties; 
and  that  an  essential  part  of  the  present  unparalleled  awaken- 
ing of  civic  conscience  on  the  part  of  all  classes  of  the  people 
is  the  desire  for  municipal  ownership  of  franchises.  As  the 
people  become  aroused  to  the  degradation  of  their  politics  and 
to  the  need  of  reform,  their  attention  is  concentrated  on  the 
chief  source  of  that  degradation,  the  underhanded  and  often 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  155 

high-handed  domination  of  city  officials  and  machine  politics 
by  the  corporations  whose  life  is  maintained  by  city  fran- 
chises."    (For  the  facts  see  sections  8  and  9.) 

Professor  Ely  says:  "Our  terrible  coiTiiption  in  cities  dates 
from  the  rise  of  private  corporations  in  control  of  natural 
monopolies,  and  when  we  abolish  them  we  do  away  with  the 
chief  cause  of  corruption.  'But/  it  is  said,  'we  must  take 
natural  monopolies  out  of  politics.'  It  never  has  been  done, 
and  it  is  an  impossible  thing  to  do — absolutely  impossible.  Xo 
gas-works,  no  water-works,  no  street-car  lines,  no  steam  rail- 
ways, are  so  thoroughly  in  politics  as  those  in  the  United 
States.  Our  American  railroads  are  incomparably  more  in 
'politics'  than  the  German  railroads.  Xot  only  this;  those 
German  railroads  which  have  been  bought  by  the  state,  I  be- 
lieve, are  less  'in  politics'  than  they  were  when  they  were  pri- 
vate property I  unhesitatingly  advocate  public 

ownership  and  management  for  gas-works,  and  I  challenge 
anyone  to  instance  a  single  American  city — or,  for  that  matter, 
any  city,  wheresoever  situated — which  has  gone  over  to  public 
ownership  and  which  regrets  it;  which,  indeed,  has  not  found 
that  a  corrupt  political  influence  was  thereby  removed  and 
political  life  purified." 

Dr.  Albert  Shaw  says:  ''The  pressure  that  would  be 
brought  to  bear  on  the  government  to  produce  corruption 
under  municipal  ownership  of  monopolies  like  gas,  electric 
light,  transit,  etc.,  would  be  incomparably  less  than  the  presr 
sure  which  is  now  brought  to  l3€ar  by  the  corporations." 

Governor  Pingree  says:  "The  corporations  are  responsible 
for  nearly  all  the  thieving  and  boodling  with  which  our  cities 
suffer." 

Private  monopolies  are  by  their  very  nature  compelled  to 
be  more  or  less  "in  politics;"  but  make  the  works  public  with 
a  provision  that  they  shall  not  be  sold  or  leased  except  on  a 
referendum  vote  of  the  people,  and  many  of  your  council 
bribers  and  government  wreckers  will  stand  among  the  lead- 
ing friends  of  honest  government.^ 


1  See  "Objections"  below  for  points  on  the  subject  of  corruption.  The 
only  political  abuse  claimed  by  objectors  to  attach  to  public  works  relates 
to  misuse  of  patronage.     But  this  abuse  exists  only  where  public  ownership 


156  THE  CITY  FOR  THE  PEOPLE. 

ATTRACTS  GOOD  MEN  INTO   POLITICS. 

XV.  The  Inducement  to  Good  and  Able  Men  to  take  part 
in  politics  is  greater  under  public  ownership  of  pubic  utilities 
than  under  private  ownership  of  them,  ivhile  the  inducement 
to  selfish  and  scheming  men  is  less  than  under  private  owner- 
ship. The  chance  to  gain  money  and  power  by  selling  votes 
and  influence  in  council  and  legislature  to  gas  or  electric,  or 
street  railway  companies,  or  by  other  political  work  for  some 
big  monopoly  is  one  of  the  things  that  attract  bad  men  into 
politics.  And  the  fact  that  so  much  of  this  sort  of  work  is 
done  is  one  of  the  principal  things  that  keep  good  men  out  of 
politics.  They  do  not  like  to  live  in  an  atmosphere  charged 
with  filth.  The  abolition  of  the  private  monopolies  will  do 
more  than  any  other  one  thing  to  purify  politics,  and  the  puri- 
fication of  politics  is  all  that  is  necessary  to  get  the  best  and 
ablest  men  to  take  their  full  part  in  public  affairs. 

DEVELOPS  CIVIC  INTEREST  AND  A  BETTER  CITIZENSHIP. 

XVI.  The  Mass  of  citizens  iclll  take  more  interest  in  puh- 
lic  affairs,  and  a  better  citizenship  along  the  whole  line  will 
result.  The  interest  which  the  average  citizen  takes  in  civic 
affairs  depends  on  the  number,  importance,  and  directness  of 
the  ways  in  which  the  government  affects  his  interests.  One 
of  the  surest  ways  to  develop  public  spirit  and  a  nobler  civic 
ideal  is  to  enlarge  the  scope  and  importance  of  city  govern- 
ment. A  government  that  means  order,  education,  roada,  fire 
protection,  water,  gas,  electric  light,  street  railways,  telegraph 
and  telephone  service,  will  engage  the  attention,  interest  and 
effort  of  the  average  man  much  more  effectively  than  a  gov- 
eniment  that  means  only  half  or  a  third  of  the  services  named. 
To  some  the  tendency  of  public  ownership  to  intensify  public 
spirit  and  civic  patriotism  seems  the  very  highest  of  all  its 
many  advantages.     For  example  the  famous  Mayoif  Jones  of 


has  not  been  fully  adopted.  A  modified  form  of  private  ownership  with  the 
all  Important  monopoly,  the  government,  largely  controlled  in  private  In- 
terest is  not  really  entitled  to  be  called  "public  ownership."  Yet  even  this 
partial  public  ownership  tends  to  produce  a  strong  niovoinont  toward  real 
public  ownership  and  at  its  worst  the  abuse  of  patronage  is  an  evil  utterly 
insignificant  as  compared  with  the  secret,  all  pervading,  soul  degrading, 
government  destroying  corruptions  of  private  monopoly  to-day. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  157 

Toledo,  said  in  his  admirable  address  to  the  League  of  Amer- 
ican Municipalities,  Detroit,  1898:  "The  greatest  good  that 
we  are  to  find  through  municipal  ownership  will  be  found  in 
the  improved  quality  of  our  citizenship." 

OPPOSES  THE  SPOILS  SYSTEM. 
LEADS  TO  THE  MERIT  SYSTEM  OF  CIVIL  SERVICE. 

XVII.  Civil  Service  Reform  icill  be  aided  hy  Public  Own- 
ership. The  awakening  of  civic  interest  in  the  mass  of  the 
people,  the  infusion  of  better  men  and  nobler  influences  into 
politics,  and  the  elimination  of  some  of  the  worst  men  and 
most  degrading  influences,  will  help  the  cause  of  every  govern- 
mental reform,  but  there  are  even  more  specific  reasons  for 
believing  with  Professor  Ely  that  "The  door  to  civil  service 
reform  is  industrial  reform."  In  the  first  place  large  masses 
of  business  cannot  be  so  well  or  economically  managed  with- 
out good  civil  service  regulations  based  on  the  merit  s^'stem 
of  appointment  and  promotion,  wherefore  the  enlargement  of 
public  business  intensifies  the  losses  of  taxpayers  from  the 
absence  of  such  regulations,  deepens  their  interest  in  civil  ser- 
vice reform  and  strengthens  their  demand  for  it.  In  the 
second  place  the  managei's  of  public  works  are  prompted  to 
favor  such  reform  because  their  works  cannot  reach  the  highest 
efiiciency  or  economy  without  it.  The  pride  which  every  good 
superintendent  has  in  his  works  and  the  natural  desire  of  de- 
partment chiefs  to  make  as  good  a  showing  as  possible  makes 
such  men  the  friends  of  civil  service  reform.  The  Detroit 
Electric  Commissioners  express  the  feeling  of  many  depart- 
ment heads  when  they  say  in  the  last  report  (1899),  p.  10, 
"To  a  strict  adherence  to  the  policy  which  assured  the  work- 
ing force  of  the  Commission  a  tenure  of  position  dependent 
solely  upon  good  behavior  and  the  system  of  promotion  in 
service  according  to  merit  which  has  always  prevailed,  the  suc- 
cess which  has  thus  far  attended  the  administration  of  this 
department  of  the  city's  government,  is  mostly  due.  The 
Commission  has  had  occasion  to  call  attention  to  the  import- 
ance of  this  subject.  The  work  of  the  past  year  confirms  its 
belief,  and  has  seiwed  to  emphasize  the  necessity  of  a  rigid 


158  THE  CITY  FOR  THE  PEOPLE. 

adherence  to  this  princijile A  departure  from 

this  policy  would  result  in  decreasing  not  alone  the  uniform 
efficiency  of  the  service,  but  also  seriously  interfering  with  its 
economical  administration."  In  the  third  place  experience 
proves  that  public  works  become  powerful  means  of  improve- 
ment in  the  civil  service.  This  has  been  the  case  in  Chicago, 
Wheeling,  Richmond,  and  other  large  cities.  Superintendent 
Darrah  of  the  AVheeling  works  told  Professor  Bemis  in  1891 
that  the  very  fact  of  the  gas  works  being  in  public  hands  was 
forcing  the  question  of  civil  service  reform  to  the  front. 
When  the  legislature  granted  the  A¥heeling  works  the  right 
to  sell  gas,  it  required  that  the  board  of  gas  trustees  should  be 
non-partison  i.  e.  selected  from  the  two  chief  political  parties. 
Professor  Bemis  made  a  special  study  of  this  subject  and  states 
the  result  as  follows:  "The  tendency  of  public  ownership  in 
every  city  investigated  is,  I  find,  to  a  gradual  separation  of 
politics  and  patronage  from  the  gas  and  other  departments."^ 
There  is  no  doubt  upon  reason  and  experience  that  public 
o^wnership  tends  to  destroy  the  spoils  system  and  establish  the 
merit  system  of  civil  service. 

TENDS  TO  IMPROVE  THE  GOVERNMENT. 

XVIII.  Better  Government  is  likely  to  result  from  the 
public  ownership  of  monopolies,  not  only  thru  its  tendency  to 
force  ci\al  service  reform,  improve  the  quality  of  citizenship, 
deepen  the  interest  of  the  masses  in  municipal  government, 
attract  more  good  and  able  men  into  politics  while  discour- 
aging bad  men,  change  the  financial  interest  of  the  rich  and 
influential  from  opposition  to  good  government  to  support  of 
it,  and  abolish  the  corporations  that  constitute  the  chief  cause 
of  corruption,  but  also  thru  its  tendency  to  liberate  thinkers, 
speakers,  writers,  editors,  preachers,  teachers  and  working- 
men  from  the  restraints  now  imposed  upon  them.  It  is  not 
quite  safe  to-day  to  be  a  reformer  or  to  talk  too  plainly  about 
the  doings  of  the  big  monopolies.  Editors  of  great  dailies 
would  lose  their  ix)sitions  if  they  told  the  people  what  they 


»  Municipal  Gas,  p.  135. 


PUBLIC  OWKERSHIP  OF  PUBLIC  UTILITIES.  159 

know  and  think  about  the  street  railways,  electric  light  com- 
panies, etc.,  for  the  owners  of  such  monopolies  are  in  many 
cases  the  owners  of  the  papers  also.  Preachers  who  apnly 
Christian  princi])les  too  specifically  to  industrial  conditions 
find  the  church  purse  and  policy  controlled  by  those  who  favor 
a  statute  of  limitations  on  the  Golden  Rule  when  it  comes  into 
the  neighborhood  of  private  monopoly  or  brings  suit  against 
a  trust  or  combine.  A  professor  of  economics  who  discusses 
the  evils  of  monopoly  with  reasonable  thoroness  is  in  danger 
of  losing  his  position  thru  corporate  influence,  or  the  pressure 
of  wealth  upon  the  trustees,  or  their  fear  of  losing  support. 
The  business  man  may  lose  his  trade  and  the  workingman  his 
employment  by  expressing  himself  on  the  monopoly  question. 
A  public  spirited  merchant  of  Chicago  who  took  a  vigorous 
part  in  exposing  and  opposing  the  outrageous  scheming  of  the 
street  railway  companies  to  get  a  fifty  year  franchise,  was 
threatened  with  ruin  again  and  again  if  he  did  not  desist. 
Reform  under  such  conditions  is  not  an  attractive  occupation. 
Press,  pulpit,  college,  and  market  wear  the  chains  of  monopoly 
as  well  as  the  city  hall  and  the  state  house.  But  make  the 
monopolies  public  and  the  chains  will  fall.  It  will  no  longer 
be  dangerous  to  advocate  the  reforms  that  are  now  so  bitterly 
fought  by  the  private  monopolists.  Governmental  reform  will 
have  only  natural  inertia  and  the  politician  to  overcome,  and 
if  the  referendum  is  added  to  public  possession  of  monopolies 
the  politician  will  be  swept  aside  along  with  the  industrial 
monopolist. 

FRANCHISE  ADVAlfTAGES. 

XIX.  An  unlimited  franchise  is  an  advantage  w^hich  a 
public  monopoly  possesses  as  a  rule  over  private  monopolies. 
The  point  is  well  brought  out  by  Mr.  A.  R.  Foote  of  the  Cen- 
sus Department,  who  claims  that  a  public  plant  has  economic 
advantages  over  a  private  company  at  present  in  the  fact  that 
the  franchise  of  the  public  plant  is  unlimited,  exclusive,  and 
unrestricted.  Unlimited  because  successful  public  ownership 
^^411  probably  never  be  abandoned;  exclusive  because  govern- 
ment tends  to  complete  supremacy  in  its  sphere  of  action; 


IGO  THE  CITY  rOK  THE  PEOPLE. 

and  unrestricted  because  free  to  adopt  all  improvements.  The 
advantages  of  such  a  franchise  economically  and  politically 
are  sufficiently  obvious.  It  is  the  necessity  of  effort  to  prevent 
invasion  of  franchise,  and  to  secure  enlargement  or  renewal 
of  it  that  keeps  private  companies  in  politics.  It  is  not  quite 
true,  however,  that  the  franchise  of  a  public  plant  is  unre- 
stricted, as  may  be  seen  from  the  large  number  of  electric 
works  that  would  like  to  do  commercial  lighting  but  are  not 
allowed  to.  Public  franchises  ought  to  be  less  restricted  than 
they  are,  and  will  be,  as  the  people  come  to  understand  the 
situation  more  thoroughly.  The  great  advantage  of  public 
ownership  in  this  relation  lies  in  the  fact  that  public  plants 
can  be  trusted  with  unlimited,  exclusive,  and  unrestricted 
franchises  while  it  would  not  be  safe  to  accord  such  franchises 
to  private  companies. 

HIGHER  REGARD  FOR  LABOR. 
UNDER   PUBLIC   OWNERSHIP   THE   WORKERS    ARE    CO-PARTNERS. 

XX.  Better  Treatment  of  Lahor  is  one  of  the  chief  recom- 
mendations of  public  ownership  to  the  mind  of  a  philanthro- 
pist, a  democratic  philosopher,  or  a  workingman.  The  ten- 
dency shows  itself  in  shorter  hours  and  longer  wages,  better 
provision  for  safety  and  comfort,  larger  liberty  and  care  for 
accident  and  old  age.  Public  ownership  puts  Labor  above 
Capital.  Private  ownership  puts  Capital  above  Labor.  Men 
before  money  in  one  case;  money  before  men  in  the  other. 

The  Brooklyn  Bridge  record  of  $2.75  for  an  8  hour  day  on  the 
public  cars,  while  the  private  companies,  running  over  the  same 
bridge,  pay  $1.50  to  $2.30,  or  an  average  of  less  than  $2  for  10  hours, 
shows  the  tendency  of  public  ownership  in  this  regard.^  The  Bridge 
Railway  also  gave  its  men  a  two  weeks'  vacation  on  full  pay,  rubber 
coats  and  gloves  and  two  uniforms  a  year,  free  medical  attendance 
in  case  of  injury,  and  usually  half  their  regular  wages  as  long  as 
needed.  The  employees  of  the  private  roads  have  none  of  these  ad- 
vantages. When  Glasgow  took  over  the  tramways,  hours  were 
reduced  2  to  4  hours  a  day  and  24  to  38  per  week,  or  over  30  per 
cent.;    wages    were    raised    2    shillings    a    week    (two    years    later 

'  The  wages  giveu  are  those  of  the  train  hands.  A  comparison  of  engi- 
neers and  firemen's  wages  In  1897  showed  $4  for  engineers  and  $2.37  for 
firemen  for  an  8  hour  day  on  the  piibiic  trains,  while  the  L  roads  in  New 
lorl£  and  Broolilyn  paid  $3  to  $3.50  for  a  10  hour  day  to  engineers  and  $1.75 
to  $2  for  firemen. 


PUBLIC   OWNERSHIP  OF  PUBLIC   UTILITIES.  161 

another  increase  was  made,  amounting-  to  a  25  per  cent,  advance), 
and  two  uniforms  a  year  were  supplied  to  each  man  free — a  volun- 
tary improvement  of  the  conditions  of  labor  exactly  contrary  to 
the  policj^  of  the  private  companies.  The  public  tramways  of 
Huddersfield  pay  higher  wages  for  8  hours  work  than  are  paid  by 
the  private  companies  in  surrounding  places  for  12  to  14  hours. 
Sheffield,  on  taking  the  tramways,  increased  wages  over  10  per 
cent,  and  provided  uniforms  for  its  men.  The  municipal  gas  Avorks 
of  Wheeling  and  Richmond  both  paj-  more  for  common  labor  than 
the  competitive  rates  in  their  localities,  and  the  Chicago  electric 
plant  has  been  criticised  by  the  opponents  of  municipal  ownership 
for  employing  two  shifts,  with  short  hours,  at  $2  a  day,  instead  of 
working  the  men  in  one  shift  at  $35  to  $50  a  month,  as  the  private 
companies  do. 

A  private  corporation  usually  cares  little  about  its  ordinary  work- 
men. They  are  only  part  of  its  tools  and  the  part  most  easih'  and 
cheaplj-  replaced.  But  with  a  public  corporation  it  is  different. 
Well-paid  labor  and  contented  citizenship  are  of  the  first  impor- 
tance to  the  community,  and  the  employees  are  part  of  the  people 
for  whose  benefit  the  municipal  railway  or  other  public  institution 
exists,  are  partners  in  it,  in  fact,  with  a  share  in  its  control,  and 
the  consequence  of  these  united  facts  is  a  powerful  tendency  to 
shorten  hours,  raise  wages,  provide  for  protection  from  storm 
and  accident,  establish  the  rights  of  promotion  for  merit  and  se- 
curity from  unjust  discharge,  and  recognize  the  right  of  organiza- 
tion, freedom  of  petition  and  independent  political  action. 

Years  of  careful  study  of  the  attitude  of  public  and  privat-e  cor- 
porations toward  laboring  people  led  me,  in  a  series  of  articles  on 
Street  Eailwaj's  in  1897,  to  make  the  following  comparative  state- 
ment of 

1  abor's  Interest  in  Public  Ownership. 

Pnvnte  Ownership  Means  IHihli'-  Oirner.'/  i/i  Meavs 

Long     hours     and     low     wages     for  Short    hours    and     high     wages     for 

workers.  workers. 

Short    hours     and     big    salaries    for  Reasonable      hours      and     moderate 

managers.  salaries  for  managers. 

Denial  of  the  rights  of  organization  Full   recognition  of  the  rights  of  or- 

and   petition.  ganization    and    petition. 

Oppressive    regulations    for    private  Moderate   regulations   for  the  public 

iuterest  and  caprice.  good. 

Insecuritv   of  employment— arbitrary  Greater  security  of  employment  .:    i 

discharge  at  the  whim  of  a  petty  a  growing  movement  toward  ma  • 

boss.  ing  it  absolutely   secure. 

Strikes,  boycotts,  blacklists.  Petition,  investigation,  redress,  witL 

the  ballot  as  the  final   resort. 

Carelessness  of  the  conditions  of  la-  A  definite  and  persistent  policy  of 
bor.  men  bought  as  commodities  improving  the  conditions  of  labor, 
at  the  lowest  market  price  and  appointing  and  promoting  for  merit 
and  thrown  awav  like  old  clothes  and  service,  protecting  employes 
when  the  value  is  worn  out  from  storm  and  injury,  providing 
of  them;  no  protfction  from  cold  for  sickness,  old  age  and  death; 
and  storm;  no  provision  for  the  recognizing  that  a  contented,  well- 
worker  in  case  of  sickness  and  old  fed  citizenship  is  of  the  first  Im- 
age, nor  for  his  famllv  in  case  of  portance;  that  men  are  worth  more 
his  death;  no  sympathetic  treat-  than  money;  that  4.000  happy 
ment  of  the  workers  as  partners  homes  in  moderate  circumstances 
and  brothers  or  even  as  valuable  are  better  than  20  luxurious  pal- 
live  stock,  but  merely  as  money-  aces  and  3,980  tenements  pinched 
milking  tools  that  can  be  replaced  by  poverty, 
at  little  if  any  cost. 

11 


162 


THE  CITY  FOR  THE  PEOPLK. 


High  fares,  curtailing  the  use  of  the 
roads  by  the  working  people,  and 
compelling  them  to  live  in  crowded 
tenements  near  their  work. 

Large  profits  to  a  few,  adding  to  the 
disturbance  of  wealth  diffusion 
which  constitutes  the  main  griev- 
ance of  labor  to-day. 

Mastership  and  moneyed  aristocracy. 


Low  fares,  enabling  the  working  peo- 
ple to  live  at  a  distance  and  reliev- 
ing the  pressure  in  the  tenement 
districts. 

Prohis  for  the  people — no  overgrown 
fortunes  for  the  few;  tendency  to 
wealth  diffusion  and  removal  of 
the  greatest  danger  of  present 
industrial   conditions. 

Partnership,    democracy,    fraternity. 


When  the  street  railways  are  owned  by  the  public  every  laboring- 
man  in  the  city  will  be  a  partner  in  the  business,  a  co-owner  of  the 
plant. 

The  roads  will  belong  to  him  as  much  as  to  the  richest  man  in 
the  community.  He  will  have  an  equal  vote  in  determining  their 
management.  He  will  share  the  benefits  of  the  system  in  the  shape 
of  cheaper  transportation,  public  utilities  bought  with  the  profits 
that  accrue  to  the  municipal  treasury,  larger  freedom,  greater  se- 
curity and  increased  remuneration  of  labor. 

One  may  get  a  clear  view  of  the  relations  of  public  and  private 
enterprise  to  the  labor  question  by  comparing  the  Boston  police 
with  the  street  railway  employees: 

A  full-fledged  policeman   gets   $1,200 
a  year. 

The     policeman     has     an     excellent 

chance  of   promotion,    one   in   each 

seven  members  of  the  force  being 

an    officer    enjoying    a    salary    of 

?1,40U  to  $2,800. 
The  policeman  is  on  duty  ten  hours 

day  or  seven  hours  night. 

The   policeman   Is   secure   in   his   po- 
sition during  good  behavior. 

The  police  board  may  retire  a  police- 
man on  half  pay  after  twenty 
years  service  in  case  of  disability, 
and  shall,  upon  request,  retire  him 
on  half  pay  at  65,  or,  In  case  of 
permanent  disability,  by  accident, 
etc.,  in  the  service. 
The  police  are  free  to  organize,  to  The  conductors  and  motormen  or- 
petition,  to  vote  as  they  please,  to  ganize   at   the    risk     of    discharge, 

speak    their    minds    on    any    public  petition   with   little   chance  of  fair 

question.  consideration,     strike     with     small 

probability  of  accomplishing  any- 
thingbut  loss  of  wages  for  all  con- 
cerned, and  permanent  dismissal, 
witli  blacklisting,  perhaps,  for  the 
leaders,  and  are  often  afraid  to 
vote  or  speak  on  public  questions 
according  to  their  independent 
Judgment,  for  fear  the  company 
»  management    may    deem    their    ac- 

tion adverse  to  corporate  interests, 
and  mark  them  for  dismissal. 
The   president    of    the    West    End    is 
said  to  receive  $2.5,000    a    year    as 
agent  of  the  company. 

One  of  the  most  striking  contrasts  under  this  head  is  brought 
out  by  a  comparison  of  the  treatment  of  employes  by  the  Western 
Union  Telegraph  monopoly,  on  the  one  hand,  and  by  the  English 
postal  telegraph  and  our  own  post  office  on  the  other. 

The  heaviest  count  in  the  indictment  of  the  present  telegraphic 
system  in  America  is  the  ill  treatment  of  employes  and  the  general 
abuse  of  the  employing  power — child    labor,   overworked    operators, 


A  full-fledged  conductor  or  motor- 
man  gets  $800  a  year  if  he  loses  no 
time. 

The  conductor  and  motorman  have 
little  or  no  chance  of  promotion. 


The  conductor  or  motorman  is  on 
duty  more  than  ten  hours  whether 
his  service  is  day  or  night. 

The  conductor  or  motorman  may  be 
discharged  any  moment  at  the 
whim  of  a  petty  boss. 

The  conductor  or  motorman,  when 
old  or  disabled,  is  dropped  like  a 
burnt-out  fuse. 


The  superintendent  of  police  gets 
$3,500  a  year  as  the  agent  of  the 
people. 


PUBLIC  OWKEESHIP  OF  PUBLIC  UTILITIES.  163 

long  hours  and  small  pay  for  those  who  do  most  of  the  work;  short 
hours  and  big  pay  for  those  who  manage  and  scheme;  less  wages 
to  women  than  to  men  for  the  same  work;  favoritism  and  unjust 
distinctions  between  men  in  the  same  service;  a  settled  policy  of 
reducing  wages  and  increasing  work;  denial  of  the  right  of  peti- 
tion, the  right  of  organization  and  the  right  to  consideration  be- 
cause of  long  and  faithful  service;  fraud;  oppression,  merciless 
discharge,  blacklisting,  boycotting,  breaking  agreements,  treating 
men  as  commodities  to  be  bought  at  the  lowest  market  price  and 
thrown  away  like  a  sucked  orange  as  soon  as  the  company  has 
squeezed  the  profit  out  of  their  lives — such  are  the  items,  or  some  of 
the  items,   under  this  vital  count. 

The  employment  of  thousands  of  little  boys,  twelve  to  sixteen 
years  old,  is  a  very  serious  wrong.  These  children  ought  to  be  in 
school,  not  in  the  street.  One  of  the  best  things  about  public 
business  is  that  it  does  not  impose  the  burdens  of  toil  upon  child- 
hood. In  the  post  office  the  carriers  are  men,  not  boys.  There  is 
no  better  measure  of  the  difference  in  the  spirit  of  public  enter- 
prise and  the  spirit  of  a  great  private  corporation,  than  is  to  be 
found  in  the  contrast  between  the  fine  looking  men  who  act  as 
messengers  for  Uncle  Sam,  8  hours  a  day,  on  salaries  of  $600,  $800 
and  $1000  a  year,  and  the  little  mind-starved,  opportunity-cheated 
boys  that  act  as  messengers  for  the  telegraph  companies,  10  to  16 
hours  a  day,  on  salaries  of  $2  or  $3  a  week. 

The  contrast  between  the  operators  and  the  carriers  is  scarcely 
less  intense.  In  the  cities,  9  and  10  hours  constitute  a  day's  work 
for  an  operator,  but  elsewhere  the  day  is  from  12  hours  up.  The 
majority  of  operators  work  12  and  13  hours,  some  work  16  and 
18  hours,  and  at  times  20  hours."  Yet  the  labor  of  an  operator  is  so 
confining  and  exhausting  that  life  and  health  do  not  ordinarily 
stand  the  strain  very  many  years,  and  Mr.  Orton,  a  former  presi- 
dent of  the  Western  Union,  told  a  committee  of  Congress  that  no 
opei-ator  should  work  over  6  hours  a  day.  A  few  operators  get 
$75  or  $80  a  month,  but  nine- tenths  of  the  operators  of  the  Western 
Union  are  paid  from  $15  to  $40  a  month,'  and  girls  are  employed  as 
low  as  $12.  United  States  mail  carriers,  on  the  other  hand,  work 
8  hours  at  far  less  exhausting  labor  and  receive  from  $50  to  $84 
a  month— $84  always  after  the  second  year.  And  this  is  not  the 
end  of  the  contrast  by  any  means,  as  the  following  table  shows:  * 

Quite  as  emphatic  is  the  contrast  between  the  English  public 
telegraph  and  the  Western  Union.  Here  are  the  facts  in  parallel 
columns : 


'Blair  Rep.  U.  S.  Sen.,  Vol.  1,  p.  119.  125,  150,  156;  I.  T.  U.  Hearings, 
p.    50. 

»  Postmaster  General  Wanamaker's  Arg.,  1890,  p.  141. 

*  The  clerks  in  the  postofflces  are  not  included  In  the  comparison  'or  In 
the  mass  of  the  offices  they  are  not  federal  employes,  but  are  hired  by  the 
postmasters  who  really  stand  to  the  government-  m  the  relation  of  contrac- 
tors In  3d  and  4th  class  offices  the  clerkage  is  entirely  in  the  hands  of  the 
postmaster  and  in  2d  class  offices  the  government  exerc  ses  only  a  slight 
Bupervision  over  the  matter.  The  postotHce  is  not  jet  fully  Py^'  "zed.  but 
so  far  as   it   is  public   it  makes  an   excellent   record,    {kvc  tahh    tnrt  page.} 


164 


THE  CITY  FOK  THE  PEOPLE. 


WESTERN   UNION. 

Two  big  strikes  in  a  quarter  of  a 
century.  Serious  losses  and  inter- 
ruptions of  business.  Large  drops 
In  wages  and  progressive  mal-im- 
provement  of  conditions  of  labor. 
Poor  service  and  discontented  em- 
ployes. 

Persistent  policy  of  lowering  wages 
and  increasing  the  burdens  of  the 
workers.  The  managers  took  ad- 
vantage of  the  defeat  of  the  men 
in  the  great  strike  of  '83  to  re- 
arrange matters  so  as  to  get  "one- 
third  more  work  out  of  a  man  for 
a  daj's  service."  (Pres.  Green's 
words.    Wan.   Arg.,   p.   221.) 

The  Blair  Committee  of  the  United 
States  Senate  found  thai  the 
Western  Union  had  pursued  a 
systematic  policy  of  reducing  wa- 
ges by  filling  positions  vacated  by 
death,  resignation,  transfer  or  dis- 
charge with  new  men  at  salaries 
$5  or  $10  below  the  pay  of  former 
occupants;  that  the  reduction  had 
amounted  to  40  per  cent,  from  1870 
to  1883,  and  that  all  the  while  the 
hours  of  labor  were  Increasing  and 
the  profits  of  the  company  grow- 
ing larger. 

Organization  frowned  upon.  Em- 
ployment insecure.  Promotion  at 
a  minimum.  Long  service  re- 
warded by  dismissal  to  make  room 
for  the  cheaper  labor  of  a  boy  the 
old  operator  has  taught  to  do  his 
work.  No  provision  for  sickness, 
disability  or  death. 


ENGLISH    TELEGRAPH. 

No  strikes.  Harmonious  unlnter- 
rupted  operation.  Large  Increase 
of  wages,  and  progressive  improve- 
ment of  conditions  of  labor.  Su- 
perior efficiency  of  well  treated  and 
contented   workers. 

Persistent  policy  of  Postal  Tele- 
graph Department  from  first  to 
last  to  raise  wages,  shorten  hours 
and  add  to  the  privileges  of  labor. 


Since  1870,  when  the  government 
took  the  telegraphs,  wages  have 
risen  from  39  per  cent,  to  over  72 
per  cent,  of  the  total  revenues.  As 
a  rule,  the  salaries  of  telegraphers 
in  England  have  been  raised  $150 
to  $200  each  since  1881  and  hours 
have  been  shortened  one-seventh, 
the  present  hours  being  eight  in 
the  day  time  or  seven  at  night  for 
six  days  in  the  week. 


Employes  free  to  organize.  Employ- 
ment is  secure.  Merit  finds  pro- 
motion. Long  service  is  rewarded 
with  increased  pay.  And  liberal 
provision  is  made  for  pensions  in 
case  of  sickness,  disability  and  old 
age. 


Note  4  continued — 


Private  Telegraph  and  Public  Post. 


Average  pay  per  month. 

Average  hours 

Promotion 


Length  of  service.. 


840  to  850. 

9  to  16. 

For  merit,  rare. 

Not  recognized  as  giving 
any  claims  to  increase  of 
pay,  or  continuance  in 
employ. 

Tenure Prpparious  — rlrpendenton 

i  individii.Tl  whim  and  ar- 
liitr.niy  jxavpr  of  an  irre- 
spoiisihlp  Muperioi'. 

Rights  of  petition,  organi-  j 
zatlon,  etc Denied. 


Tklkgraph  OpkRaiors. 


PiiSTAL 

Carriers. 


Railway  Mail 

Cl.KRKS. 


875.  SS4. 

5  to  8.* 

For  merit  the  rule. 

Clearly  recognized  as  giving  a 
valid  title  to  increase  of  pay, 
retention  and  preferment. 


"Freedom  from  removal  except 
for  inefficiency,  crime,  or  mis- 
conduct."** 


Accorded. 


'The  daily  train  run  of  a  railway  postal  clerk  Is  4  to  6  hours.  (Post- 
master General's  Rep.,  1892,  p.  523  et  seq.),  but  the  clerk  is  obliged  to  devote 
some  further  time  to  making  reports,  checking  records,  preparing  supplies 
for  the  following  trip,  etc.  A  carrier  receives  $600  the  first  year,  $800  the 
second  year,  and  $1,000  the  third.  Between  four  and  five  thousand  of  the 
seven  thousand  railway  clerks  receive  $1,000  to  $1,400  each,  and  fifteen 
hundred  more  receive  $900  each.  The  postofflce  does  not  seek  to  buy  labor 
at  auction,  but  alms  to  pay  as  much  as  it  reasonably  can,  regardless  of  the 
price  of  labor  at  forced  sale  in  tlie  markets  of  competition. 

♦♦Statement  of  Postmaster  General  John  Wanamaker,  1892.  Rep.  p.  501. 
not  merely  as  the  aim,  but  as  the  actual  condition  of  the  railway  mail  service 
a  condition  which  had  produced  great  improvement  in  the  service.  Post- 
master General  Bissell,  1894  Rep.,  p.  395,  says:  "The  civil  service  laws  and 
regulations  as  applied  to  the  Railway  Mail  Service  acconiplsh  all  the  most 
sanguine  expected,"  and  goes  on  to  speak  In  the  highest  terms  of  fhe  fine 
quality  of  appointments,  the  high  efllciency,  the  permanence  of  employment, 
and  the  promotion  for  merit,  secured  under  the  civil  service  rules. 


PUBLIC  OWNKKSIIIP  OF  PUBLIC  UTILITIES. 


165 


The  following-  paragraph  from  the  Telegraphers'  Advocate,  Nov. 
6,  1896,  expresses  the  feeling-  of  the  great  body  of  emplo3'es  in  this 
country  in  respect  to  the  advantag-es  of  public  service: 

"The  mail  carriers  sent  a  delegation  to  Washington  not  long  since 
to  see  the  Postmaster  General.  Think  he  will  refuse  to  receive  the 
committee?  Think  all  the  mail  carriers  in  the  United  States  will 
have  to  strike  in  order  to  get  their  organization  'recognized?'  Oh, 
this  government  service  is  fearful — short  hours,  good  paj^  live 
where  you  please,  vote  as  you  please,  no  wage-cutting,  no  reduction 
in  force,  no  strikes,  lockouts  or  blacklists.  It's  just  awful,  so  it  is. 
No  self-respecting  operator  could  stand  it." 

Under  private  ownership  labor  has  no  means  of  redress  but  the 
strike,  and  that  is  often  disastrous  to  the  employes  as  well  as  to 
the  public;   witness  Brookljn,  Philadelphia,  Boston,  etc. 

Organized  labor  fully  recognizes  the  evils  of  private  monopoly 
and  the  advantages  of  public  ownership,  and  the  American  Federa- 
tion of  Labor,  representing  a  vast  body  of  workers,  adopted  the 
folllowing  resolution  at  its  annual  convention  in  December,  1896: 
"Resolved,  That  the  sixteenth  annual  convention  of  the  Americau 
Federation  of  Labor  urges  upon  all  the  members  of  affiliated  bodies 
that  they  use  every  possible  effort  to  assist  in  the  substitution 
in  all  public  utilities — municipal,  state  and  national,  that  are  in 
the  nature  of  monopolies — public  ownership  for  corporate  and  pri- 
vate control." 

The  reader  may  find  it  helpful  to  cari-j'  with  him  the  following 
comparisons.  They  are  not  the  strongest  that  can  de  made,  for 
the  right  hand  column  does  not  represent  the  extremes  of  low  pay 
or  long  hours  in  private  corporations,  and  even  as  averages  the 
hours  are  understated,  being  the  theoretical  and  not  the  actual 
hours,  which  often  run  10  to  20  per  cent,  over  the  theoretical  day. 
The  contrasts,  however,  are  crisp  and  clear  and  easily  remembered, 
and  all  the  more  forceful  from  the  fact  that  they  are  not  the  ex- 
tremes : 


Hours  and  Wages  under  Public  and  Private  Ownership. 


Public.                     Private. 

II 

• 

Average 

hours 

per  day. 

1) 
Average     Average 

pay           hours 
per  year,     per  day. 

Average 

pay 
per  year. 

• 

Railway  Mail  Clerka ... 

7 
8 

8 
7>^ 

81030      ;         12 
900              12 

1000              10 
1210      1,        10 

ii 

9540 
72) 

700 
620 

Western  Union  Opera- 
tors. 
Conductors  and  Mot-r- 

Brooklyn  Bridge  Rail- 

nien,      Philadelphia 

Street  Railways.    .M. 

Louis  about  the  Siinit*. 

Trainmen  on  New  Yo-  k 

Boston  Police 

and       Brooklyn      L 
Roads. 
Employes     West     End 
Street  Railway,  Bo- 
ton. 

166 


THE  CITY  FOE  THE  PEOPLE. 


NO  INDUSTRIAL  RIOTS  OR  REBELLIONS. 

XXI.  No  costly  strikes  and  lockouts  adorn  the  history  of 
public  works.  Diligent  inquiry  has  brought  to  light  only  two 
strikes  in  public  institutions,  one  among  the  trimmers  of  a 
municipal  lighting  plant,  and  the  other  among  the  employes 
of  a  post-office  who  were  not  really  public  employes,  but  coii- 
tractees  of  the  postmaster.  Neither  strike  occasioned  any 
serious  loss.  Compare  this  record  with  the  following  items 
relating  to  strikes  in  private  industry : 

Losses  Occasioned  by  Strikes. 


Loss  to 
Employes. 

Loss  to 
Employers. 

Loss  to 
Public. 

Total. 

Nevf  Orleans  Street  Railway  Strike,  1892. 
New  York  Street  Railway  Strike,  1889... 
Reading  Strike,  1887 

$500,000 

8750,000 

$5,000,000 

$6,250,000 
1,707,000 
5,320,000 

3,620,000 

1,400.000 

1,739,000 

250,000 

51,814,700 

168,807,657 

1,000,000 

3,1811,000 

5,35S,000 

709,300 

30,701,500 

82,587,786 

70  ),000 

Gould  Strike,  1886 

Chicago  Strike,  1894 

Telegraph  Strike,  1883 

1881-6,   3902    strikes    involving    22  804 

establishments  and  1,332,200  employes 
1887-94,  lt,.389  strikes  involving  69,166 

establishments  and  3,714,230  employes 

80,000,000 

87,097,000 

400,000,000(?) 

Most  of  the  figures  are  taken  from  g-ovemment  reports.  For  the 
Chicago  strike  the  estimates  of  loss  for  employes  and  companies 
were  made  by  the  United  States  Commission,  the  loss  of  the  country 
at  large  is  Broadstreet's  estimate.  The  strike  was  caused  by  a  25 
per  cent,  reduction  at  Pullman  on  wages  already  down  to  an  average 
of  $613  a  year,  with  a  large  class  making  far  less  than  that.  The 
United  States  report  says:  "Some  witnesses  swear  that  at  times 
for  the  work  done  in  two  weeks  the  employes  received  in  checks 
from  4  cents  to  $1  over  and  above  their  rent.  (They  lived  in  Pull- 
man's houses,  and  he  did  not  reduce  the  rent  when  he  cut  wages.) 
The  company  has  not  produced  its  checks  in  rebuttal."  There  was 
rioting  and  destruction  of  life  and  property;  over  700  persons  were 
arrrested  for  murder,  arson,  burglary,  assault,  intimidation,  riot 
and  violation  of  the  United  States  statutes. 

The  railway  strike  of  1877  was  caused  by  a  10  per  cent,  reduction 
in  wages  already  low.  There  was  rioting,  with  loss  of  life,  at  vari- 
ous places.  The  state  militia  at  Martinsburg  and  Pittsburg  refused 
to  fire  on  the  strikers,  and  United  States  troops  w^ere  called  out. 
In  Cincinnati,  Toledo  and  St.  Louis  mobs  of  roughs  and  tramps 
succeeded  in  closing  shops,  mills,  etc.  At  Pittsburg  the  crowds 
resisted  the  troops  and  22  persons  were  killed  in  one  day.  Cars  to 
the  number  of  1600  and  126  locomotives  were  burned.  The  loss 
at  Pittsburg  alone  was  estimated  at  $5,000,000. 

If  the  people  owned  the  roads  would  they  burn  their  own  prop- 
erty?   If  the  railway  men  and  street  railway  men  were  part  owners 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  1G7 

and  directors  in  the  roads,  would  they  not  vote  instead  of  striking? 
If  the  public  managed  the  monopolies  would  they  disregard  the 
rights  of  labor,  and  then  refusing  to  arbitrate  produce  2000  strikes 
a  year,  with  a  total  loss  of  350  or  400  millions?  History  and  psy- 
chology and  common  sense  say,  No. 

CO-OPEKATION. 

XXII.  Public  mvnership  is  a  step  toward  co-operative  in- 
dustry. A  public  business  soon  becomes  substantially  an  all 
inclusive  co-operation  in  itself.  I  presume  that  no  co-operative 
undertaking  of  any  sort  has  more  universal  and  hearty  good 

e  will  of  those  concerned  in  it  than  have  the  national  post-office 
or  the  schools  and  parks,  water-works  and  fire  departments  of 
our  cities. 

COHESION, 

XXIII.  Social  strength  and  cohesion  will  be  aided  by  pub- 
lic ownership.  The  water,  gas,  electricity,  railways,  tele- 
phones, and  telegraphs  are  food,  light,  arteries  and  nervous 
system  for  the  body  politic,  and  a  being  that  controls  its  own 
food  supply  and  has  possession  of  its  own  nerves  and  blood 
vessels  is  more  likely  to  be  well  and  strong  than  a  being  whose 
supplies  and  means  of  communication  and  distribution  are 
owned  and  controlled  by  somebody  else. 

PUBLIC  ASSETS CITIZENS'   RICHES. 

XXIV.  Ownership  of  useful  property  is  in  itself  an  ad- 
vantage to  a  municipality  or  a  state.  A  m^n  is  better  off  when 
he  owns  a  good  business  himself  than  when  it  is  owned  by 
another,  and  the  same  thing  is  true  of  a  city.  Mr.  Dow,  for- 
merly of  the  Detroit  electric  plant,  and  now  of  the  Edison 
Company  in  the  same  city,  puts  the  matter  well  when  he  says: 
"If  a  municipal  plant  is  operated  and  managed  in  good  run- 
ning order,  at  such  a  figure  as,  added  to  interest,  sinking-fund, 
and  lost  taxes,  will  equal,  or  rather  not  exceed,  the  contract 
cost  of  lighting,  there  is  a  gain  to  the  taxpayers  in  municipal 
lighting,  directly  hy  reason  of  ownership  of  a  marketable 
asset,  free  from  incumbrance  at  the  winding  up  of  the  sink- 


168  THE  CITY  FOR  THE  PEOPLE. 

ing-fund;  and  indirectly  by  the  retention  of  the  depreciation 
fund  in  the  active  business  of  the  taxpayers."^ 

DIFFUSION  OF  WEALTH  AND  POWER. 

XXY.  Diffusion  of  benefit  is  one  of  the  most  important 
of  all  the  advantages  of  public  ownership.  The  public  schools 
and  the  post  office,  municipal  water  and  gas  and  electric  light 
Avorks,  fire  departments,  and  public  railways,  telegraphs  and 
telephones,  do  not  figure  in  the  biographies  of  millionaires.^ 
The  Tribune  list  of  sources  of  the  fortunes  of  millionaires  and 
polly  millionaires  does  not  mention  these  things  nor  speak  of 
any  public  business  whatever  in  that  connection,  but  it  has 
much  to  say  of  private  railways,  telegraphs,  telephones,  and 
express  companies,  gas  works,  water  works,  ferries  and  street 
railways. 

Low  rates  and  good  service,  smaller  salaries,  larger  wages 
and  shorter  hours,  no  lobby-work,  no  rebates,  no  stock,,  true 
capitalization,  profits  paid  into  the  public  treasury — every- 
thing about  public  ownership  tends  to  the  diffusion  instead 
of  the  congestion  of  wealth  and  opportunity.  The  following 
words  of  Justice  Marshall  in  a  great  monopoly  case  in  Ohio, 
ought  to  be  framed  in  gold  and  hung  in  every  legislative  hall 
and  council  chamber. 

"A  society  in  which  a  few  men  are  the  employers  and 
the  great  body  are  merely  employes,  or  servants,  is  not  the 
most  desirable  in  a  republic;  and  it  should  be  as  much  the 
policy  of  the  law  to  multiply  the  members  engaged  in  inde- 
pendent pursuits  or  (sharing)  in  the  profits  of  production,  as 
to  cheapen  the  price  to  the  consumer.  Such  a  policy  would 
tend  to  an  equality  of  fortunes  among  its  citizens,  thought  to 
be  so  desirable  in  a  republic,  and  lessen  the  amount  of  pauper- 
ism and  crime."^ 


'  AVestorn  Electrician,  Feb.  22,  1896. 

1  The  reader  uiust  not  understand  that  I  have  the  slightest  prejudice 
against  millionaires.  At  least  half  a  dozen  among  the  people  for  whom  I 
have  the  profoundest  respect  and  admiration  are  millionaires.  I  speak  of 
millionaires  as  an  evil  economically  because  the  congestion  of  wealth  is 
bad.  A  community  in  which  a  few  men  are  very  rich  while  a  large  class 
at  the  bottom  is  very  poor,  is  not  so  good  as  a  community  where  wealth  is 
more  evenly  diffused  so  that  all  are  in  moderate  circumstances  or  well  to  do, 
and  a  system  that  develops  millionaires  at  the  top  and  tramps  and  slums  at 
the  bottom  is  not  a  good  system  even  tho  the  personality  of  some  of  the 
millionaires  may  be  as  flue  as  any  to  be  found  in  the  middle  classes. 

»  Supreme  Court  of  Ohio.  49  Oh.  St.  at  187. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  169 

In  Xew  Zealand  the  progressive  land,  income  and  inluri- 
tance  taxes,  and  the  public  ownership  of  railroads,  telegi-aphs 
and  telephones  has  gone  far  toward  preventing  the  growtli  of 
enormous  fortunes  and  stopping  the  concentration  of  wealth 
in  few  hands. ^ 

*  PROGRESS. 

XXVI.  Progrcssiven  ess  of  the  best  sort  is  apt  to  charac- 
terize public  enterprise.  There  are  two  kinds  of  progressive- 
ness.  The  progressiveness  that  adopts  whatever  will  produce 
more  dividends  is  perhaps  less  intense  in  the  majority  of 
public  plants  than  in  the  offices  of  private  companies.  This 
is  certainly  true  in  the  case  of  industries  open  to  private  initia- 
tive. The  fresh  blood  of  vigorous  competition  keeps  such  in- 
dustries close  to  the  front.  But  remember  that  public  owner- 
ship is  not  contrasted  here  with  all  private  business,  but  with 
private  monopoly ;  and  private  monopoly  bars  out  private  in- 
itiative far  more  effectively  than  public  monopoly  does,  for 
any  one  in  the  community  may  suggest  an  improvement  in  a 
public  service  with  a  chance  of  being  cordially  heard,  and  if 
the  pulilic  ownership  is  rounded  out  with  the  initiative  and 
referendum,  a  few  people  can  secure  the  discussion  of  any 
desired  improvement  and  bring  its  adoption  to  vote  by  those 
most  interested  to  have  every  reasonable  improvement  pos- 
sible, viz:  the  people  served  by  the  plant  and  responsible  for 
its  expenses. 

AVhen  we  turn  to  the  sort  of  progressiveness  which  aims  at 
improvement  in  the  usefulness  of  the  works  to  the  community, 
or  the  greater  safety  of  the  service  whether  monetary  gain 
results  to  the  business  or  not,  then  there  is  no  question  but 
that  public  ownership  greatly  excells  the  private  monopolies. 
Such  improvements  if  made  at  all  by  such  monopolies  gen- 
erally have  to  be  forced  upon  them  by  public  action  or  a  re- 
bellion of  their  employes. 

As  a  matter  of  fact,  allowing  for  differences  in  individual  cases 
due  to  variations  in  the  personal  equation  of  the  management,  the 

'  Letter  from  Henry  D.  Lloyd  who  has  just  returned  from  a  visit  to  New 
Zealand. 


170  THE  CITY  FOK  THE  PEOPLE. 

history  of  public  roads  and  fire  departments,  water,  g-as  and  electric 
light  works,  shows  a  very  commendable  spirit  of  progress  even  on 
the  purely  economic  side  of  the  question.  The  water  works  ot 
Syracuse,  the  federated  system  of  the  Metropolitan  Water  District 
in  Massachusetts,  the  electric  plants  of  Allegheny,  South  Norwalk, 
Dunkirk,  Peabody,  and  Detroit,  and  the  gas  works  of  Eichmond 
and  Wheeling  will  compare  favorably  with  the  best  private  works 
in  regard  to  their  progressiveness  and  its  results  under  the  condi- 
tions in  their  respective  localities.  Summing  up  his  investigations 
of  all  the  public  gas  plants  in  the  United  States  Professor  Bemis 
says:  "Progressiveness  is  characteristic  of  all  the  plants  save 
Alexandria."^  While  my  studies  of  electric  plants  do  not  warrant 
quite  so  sweeping  a  generalization,  yet  the  returns  year  after  year 
certainly  indicate  a  definite,  systematic  and  successful  effort  to 
keep  abreast  of  the  times  with  both  sorts  of  progress,  in  at  least 
four-fifths  of  the  large  number  of  public  plants  whose  reports  I 
have  seen.  In  some  cases  the  strength  of  the  progressive  spirit  is 
quite  remarkable.  Topeka,  for  example,  built  electric  works  in 
1887  and  found  them  poor,  so  bad  in  fact  that  Topeka  has  been 
held  up  as  a  warning  to  municipalities  not  to  trespass  on  the  pre- 
serves of  monopolists.  But  in  spite  of  her  poor  plant  Topeka  made 
light  at  a  total  cost  of  $100  per  arc  interest,  taxes,  depreciation  and 
all,  saving  $20  per  arc  on  the  price  she  had  paid  a  private  com- 
pany, and  in  May,  1896,  she  entirely  rebuilt  the  plant  with  modern 
machinery,  and  now  the  operating  expenses  are  only  about  $40  per 
arc  and  the  total  cost  $60,  with  a  management  that  is  a  credit  to 
the  city  and  a  source  of  pride  to  her  citizens.  Even  Chicago  in 
the  last  few  years  has  brought  her  electric  record  up  from  one  of 
the  most  criticized  to  one  of  the  most  admirable,  as  we  shall  see 
when  we  speak  of  objections.  The  Brooklyn  Bridge  and  the  Glas- 
gow tramway  managements  have  proved  themselves  extremely  pro- 
gressive. The  former  has  been  untiring  in  its  efforts  to  increase 
the  usefulness  of  the  Bridge  and  the  latter  has  won  an  interna- 
tional reputation  for  an  energetic  and  intelligent  progressiveness 
exceeding  that  exhibited  by  any  private  tramway  company  in  Great 
Britain.  Glasgow  not  only  sent  a  committee  all  over  the  civilized 
world  to  study  the  best  methods  of  street  railway  service  but  she 
made  it  a  definite  purpose  to  use  the  roads  to  relieve  the  conges- 
tion of  the  tenement  districts  by  arranging  rates  and  runs  so  as 
to  encourage  tenement  dwellers  to  move  out  of  the  city,  and  bring 
suburban  homes  within  the  reach  of  the  poorest  classes;  a  matter 
of  the  utmost  moment  to  which  private  companies  give  no  heed 
unless  compelled  to  do  so  by  public  law  or  the  necessities  of  a 
franchise  agreement. 

Our  post  office  is  all  the  time  introducing  new  ideas  and  better 


*  Municipal  Monopolies,  p.  620.  See  also  p.  610  where  the  I'rofessor 
speaks  of  the  Richmond  Management  as  "very  progressive,"  and  p.  (il2, 
where  after  stating  the  details  of  the  Virginia  plants,  he  says,  "Save  perhaps 
in  Alexandria,  progressivoncss  is  everywliere  apparent." 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  171 

methods.  It  has  availed  itself  of  the  stage  coach,  canal  boat, 
steamship,  way  train,  lightning  express,  pneumatic  tube  and 
gravity  chute,  and  it  is  not  the  fault  of  the  Post  Office  Department 
that  we  cannot  send  letters  by  telegraph.  Postmaster  General  after 
Postmaster  General  has  urged  upon  Congress  the  claim  for  a  postal 
telegraph  but  the  Western  Union  vetoed  the  measure  and  the 
Western  Union  has  more  influence  in  Congress  than  the  post  office 
or  the  people. 

Inventors  are  better  treated  under  public  ownership.  The  public 
does  not  steal  or  suppress  inventions  but  encourages  and  remuner- 
ates them.  In  our  road  departments,  fire  departments,  war  depart- 
ment, etc.,  new  ideas  are  eagerly  welcomed.  Never  is  an  inventor 
so  sure  of  just  reward  as  when  his  improvement  applies  to  a  public 
business. 

While  the  Western  Union  has  been  suppressing  inventions  the 
English  postal  telegraph  has  been  encouraging  and  adopting  them. 
England  has  adopted  the  telephone,  the  multiplex  and  the  auto- 
matic in  her  telegraph  system,  doing  at  least  half  her  telegraph- 
ing with  the  latter,  and  the  department  is  always  pushing  forward 
to  new  improvements.  The  Western  Union  has  done  very  little  with 
any  machine  system,  nothing  with  the  multiplex,  and  refused  the 
telephone  entirely  though  it  might  have  had  it  for  a  song.  The 
English  telegraphic  engineers  staud  in  the  front  rank.  The  West- 
ern Union  sent  for  one  of  them  to  come  to  the  United  States  and 
examine  its  lines  and  instruct  it  what  to  do  with  them,  and  he 
found  the  said  lines  in  bad  condition  and  told  the  Western  Union 
how  to  doctor  them.  The  English  electricians  have  not  deteriorated 
because  of  the  transfer  of  the  telegraph  to  the  government.  The 
government  electricians  are  among  the  leaders  in  the  new  move- 
ment to  perfect  a  system  of  telegraphing  without  wires.  They  are 
just  as  anxious  to  discover  improvements  as  ever — more  so,  in  fact, 
because  they  are  surer  of  appreciation  and  reward.  The  public 
service  is  more  progressive  than  our  private  service  and  therefore 
promises  more  to  progressive  men.  England  welcomes  telegraphic 
invention  because  she  aims  at  service.  The  Western  Union  aims 
not  at  service,  but  at  money,  and  welcomes  only  such  inventions  as 
will  help  her  make  more  money  without  an  overwhelming  sacrifice 
of  Jier  investment — if  her  moneyed  interests  are  endangered,  no 
matter  how  greatly  the  discovery  would  improve  the  service,  she 
frowns  upon  it,  boycotts  and  imprisons  it. 

BEAUTY. 

XXVII.  Aesthetic  development  will  be  aided  by  public 
ownership.  Compare  the  broad  pavements  and  symmetrical 
front  of  the  post  office  building  on  Mnth  street,  Philadelphia, 
with  the  narrow  walk  and  jagged  conglomerate  of  ugly  build- 


J  72  THE  CITY  FOR  THE  PEOPLE. 

in^'s  or.  the  opposite  side  of  the  street.  Compare  the  Fair- 
mount  Water  Works  with  the  stations  of  the  electric  com- 
panies. Compare  the  capitol  gi'ounds  at  Washington  with  the 
railway  depots.  Recall  in  delightful  memor)^  the  exquisite 
beauty  of  the  "White  City"  at  Chicago,  the  home  of  our  great- 
est exposition  and  at  heart  a  public  undertaking  (much  of  the 
best  work  and  planning  done  without  pay  as  well  as  in  public 
service),  saturate  your  vision  with  its  wonderful  symmetry, 
harmony,  beauty  of  form  and  color,  nature  and.  art,  and  then  go 
down  into  Chicago  and  look  at  the  narrow,  dingy,  dirty,  ugly, 
hiddledee  piggledee,  planless,  disreputable  streets  that  private 
enterprise  has  l)uilt.  No  one  with  the  love  of  beauty  in  his 
soul  could  go  from  the  dream  of  the  City  by  the  Lake  to  the 
nightmare  of  Clark  street,  without  feeling  that  the  same  men 
and  women  were  totally  different  beings  in  Clark  street  from 
what  they  were  in  the  White  City,  and  that  life  would  be  in- 
finitely nobler  if  the  spirit  that  created  the  Beautiful  City 
could  transform  the  discordant  streets  of  the  cities  of  traffic 
into  habitations  fit  for  man.  Any  thoughtful  man  who  will 
make  the  comparisons  suggested,  n-  others  of  a  similar  nature, 
will  see  that  when  men  ease  up  a  little  on  the  rush  for  wealth 
and  begin  to  think  of  life  and  service  as  well  as  money,  what- 
ever they  touch  grows  beautiful.  Beauty  is  its  own  best  justi- 
fication, a  primal  good  in  itself,  a  source  of  happiness  per  se, 
a  utility  of  the  highest  order.  No  promise  of  public  owner- 
ship appeals  to  me  more  than  the  prophecy  of  art,  art  in  daily 
life,  trees,  birds,  flowers,  light,  air,  blue  sky  and  rippling 
water  for  all  the  children  of  men. 

MORALITY. 

XXVIII.  Moral  development  no  less  than  aesthetic  pro- 
gress is  favored  by  public  ownership.  The  change  from  profit 
to  service  as  a  motive  and  aim,  is  in  itself  a  moral  transforma- 
tion of  most  vital  moment.  The  hand  of  business  no  longer 
strikes  the  selfish  chords  alone,  the  altruistic  chords  are 
sounded  with  those  of  self,  and  the  two  learn  to  vibrate  to- 
gether in  harmony.  A^^len  self-love  learns  that  its  richest 
naths  lie  thru  the  fields  of  other-love,  morality  has  won  the 


PUBLIC  OWNEKSHIP  OF  PUBLIC  UTILITIES.  173 

mind,  and  when  sympathy,  thru  harmonious  living,  gains 
strength  enough  to  rule  the  life,  morality  has  won  the  heart. 
The  war  between  the  people  and  the  monopolies  is  opposed 
to  the  growth  of  sympathy  and  brotherhood.  Private  monop- : 
oly  is  anti-ehristian  and  anti-moral,  as  well  as  anti-legal.  Even 
the  evils  of  intemperance  may  be  banished  more  certainly  thru 
public  ownership  and  co-operative  industry  and  the  diffusion 
of  wealth  and  comfort  consequent  upon  them,  than  thru  any 
direct  attack,  for  as  Frances  AVillard  well  said,  the  real  sources 
of  intemperance  chiefly  lie  in  the  poverty  and  ill-life  caused 
by  improper  industrial  conditions. 

MANHOOD. 

XXIX.  Manhood  of  some  sort  is  constantly  being  evolved 
along  with  the  gas,  electric  light,  transportation  or  telephone 
service  in  every  public  or  private  plant.  Thru  wealth  diffu- 
sion and  awakening  of  civic  interest,  thru  better  treatment  of 
labor,  co-operative  effort,  aesthetic  development  and  moral  im- 
provement, public  ownership  not  only  leads  directly  to  a  nobler 
manhood,  but  produces  conditions  favorable  to  the  rapid 
growth  of  a  Xew  Political  Economy  and  a  New  Conscience 
that  shall  recognize  manhood  as  the  supreme  product  of  an 
industrial  system  and  demand  intelligent  scientific  and  per- 
sistent effort  to  subordinate  all  other  objects,  and  adjust  all 
powers  of  industry,  education,  and  government  to  the  develop- 
ment of  the  highest  character  and  the  noblest  manhood. 

LIBERTY. 

XXX.  Liberty  of  thought,  of  speech,  and  of  action, — 
liberty  of  press,  pulpit,  college,  court,  legislative  hall,  market, 
family,  voter  and  workingman,  will  be  aided  by  the  downfall 
of  the  great  private  monopolies  that  hold  them  all  in  thrall. 

DEMOCKACY. 

XXXI.  Democracy  and  self-government  are  not  merely 
favored  by  public  ownership;  public  ownership  is  democracy 
and  self-government  in  industry,  and  is  essential  to  democracy 


1  74  THE  CITY  FOR  THE  PEOPLE. 

and  self-government  in  political  and  social  life.  You  are  not 
the  equal  of  Yanderbilt  or  Rockefeller  before  the  law  or  in 
/  the  government  of  the  country,  and  cannot  be  while  thej  own 
railroad  systems  and  oil  monopolies  and  you  do  not.  A  work- 
ingman  who  is  dependent  on  monopolists  for  opportunity  to 
earn  his  daily  bread  is  not  free  even  to  east  his  vote  as  ho 
wishes.  He  may  be  ft'eer  than  his  brothers  of  the  feudal  age, 
but  he  is  not  free.  Our  government  is  more  nearly  a  democ- 
racy than  the  government  of  King  George,  or  Charlemagne, 
or  Caesar,  but  it  is  not  a  democracy,  and  cannot  be  while  one 
man  owns  200  millions  and  another  man  owns  nothing.  Our 
constitution  provides  against  titles  of  nobility,  but  many  of 
our  monopolists  have  aristocratic  power  over  larger  masses  of 
men  than  many  a  Duke  or  Marquis  controlled  in  the  olden 
time.  Our  gas  and  electric  magnates,  street  railway,  tele- 
graph and  telephone  princes,  railroad  and  oil  emperors,  are 
just  as  truly  aristocrats  as  if  born  with  titles.  Jay  Gould  is 
reported  to  have  said  that  he  had  rather  be  president  of  the 
Western  Union  than  President  of  the  United  States,  and  no 
wonder — the  chief  executive's  powers,  except  in  time  of  war, 
and  his  chances  at  any  time  of  fleecing  the  people  to  line  his 
own  pocket  were  insignificant  compared  to  those  enjoyed  by 
the  Czar  of  the  Telegraph. 

The  American  people  would  be  indignant  if  any  one  should 
charge  them  with  favoring  royalty,  creating  and  sustaining 
dukes,  marquises,  lords,  and  earls,  or  meekly  submitting  to 
titled  aristocrats  of  any  grade.  There  would  be  a  revolution 
if  Congress  should  confer  the  title  of  lord,  or  duke,  or  earl,  on 
Yanderbilt,  Gould,  Rockefeller,  Morgan,  Sage,  etc.  Lord 
Gould,  Lord  Rockefeller,  Duke  Morgan,  and  the  rest  would 
soon  find  the  country  too  warm  for  their  habitation.  Yet  the 
essence  of  royalty  and  aristocracy  is  not  in  the  title  but  in  the 
overgrown  power  which  one  man  possesses  over  his  fellows. 
A  Congress  that  grants  railroad,  telegraph,  and  banking  privi- 
leges to  private  individuals,  establishes  a  far  more  powerful 
and  therefore  more  dangerous  aristocracy  than  any  that  could 
possibly  be  created  by  the  mere  bestowal  of  titles  of  nobility. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  175 

UNITY    OF   INTEREST. 

XXXII.  Finally  the  fimdaniental  and  all-pervading  ad- 
vantage of  public  ownership  is  that  it  removes  the  antagonism 
of  interest  between  the  owners  and  the  public,  which  is  the 
vital  cause  of  all  the  evils  of  private  monopoly.  (See  above, 
"The  Root  of  Evil,"  and  "The  Eeal  Solution.") 

Method. 

Having  ascertained  the  advantages  of  public  ownership, 
the  next  question  is  how  to  secure  it. 

First,  The  city  or  town  must  have  authority,  either  by 
constitutional  provision  or  by  general  law  or  special  act  of  the 
legislature.  A  general  law  according  all  municipalities  the 
right  to  build  or  buy,  own  and  operate  any  public  utility  is 
next  best  to  a  constitutional  provision,  but  is  difficult  to  pass. 
The  easiest  plan  is  to  push  partial  measures  one  after  another, 
a  water  act  first,  then  a  gas  and  electric  light  law,  then  a  street 
railway  act,  etc.-^  In  this  way  the  opposition  of  the  monop- 
olists is  divided,  one  section  being  dealt  with  at  a  time,  where- 
as a  blanket  law  at  the  start  encounters  their  united  battle. 
After  the  partial  measures  have  been  separately  secured,  they 
can  be  easily  eondenst  into  a  brief  and  sweeping  law. 

While  the  statute  provisions  are  well  worth  working  for, 
they  are  far  inferior  to  constitutional  provisions,  because  they 
are  always  open  to  modification  or  repeal  at  the  whim  of  a 
corporation  legislature,  and  even  the  courts  sometimes  make 
trouble.  One  of  the  rules  of  law  is  that  a  legislature  cannot 
sanction  a  government  enterprise  except  for  a  "public  pur- 
pose," and  it  is  for  the  courts  to  say  what  constitutes  a  public 
purpose,  and  a  court  may  now  and  then  make  an  arbitrary 
decision.- 


'  In  asking  for  the  passage  of  such  laws  the  fact  should  be  emphasized 
that  they  are  merely  permissive  measures. 

»  There  is  an  opinion  by  a  Mass.  court  (Opinion  of  Justices,  155  Mass.  601) 
to  the  effect  that  the  legislature  could  not  authorize  municipal  fuel  varOs, 
the  sale  of  coal  and  wood  not  being  a  public  purpose  in  the  opinion  of  the 
majority  of  the  court,  the  ground  of  decision  being  that  buying  and  selling 
coal  did  not  differ  from  buying  and  selling  other  commodities  in  general,  ana 
the  judges  thought  it  would  be  bad  policy  to  open  the  door  for  municipalities 
to  go  into  mercantile  business.  In  a  strong  dissenting  opinion  Judge  Oliver 
Wendell  Holmes,  now  Chief  Justice  of  Mass.,  used  these  words:  .     ,     .„ 

•'I  am  of  opinion  that  when  money  is  taken  to  enable  a  public  body  to 
offer  to  the  public  without  discrimination  an  article  of  general  necessity,  the 


176  THE  CITY  FOR  THE  PEOPLE. 

Probably  tlie  most  emphatic  proof  of  the  need  of  consti- 
tutional provision  in  favor  of  public  ownership  is  to  be  found 
in  the  recent  "Internal  Improvement"  decision  in  ]Michigan. 
The  State  passed  a  law  authorizing  Detroit  to  purchase  street 
railway  systems  lying  wholly  or  partly  within  the  city  limits. 
Councils  appointed  a  commission,  with  Gov.  Pingree  at  its 
head;  the  details  of  the  transfer  were  aiTanged,  and  the  mat- 
ter was  ready  for  a  referendum  vote  when  the  proceedings  were 
arrested  by  a  decision  of  the  State  Supreme  Court  that  the 
law  permitting  Detroit  to  own  and  operate  her  street  railway 
system  is  not  constitutional,  because  the  Michigan  Constitu- 
tion, §  9,  Art.  14,  says:  "The  State  shall  not  be  a  party  to  or 
interested  in  any  work  of  internal  improvement  nor  engaged 
in  carrying  on  any  such  work,  except  in  the  expenditure  of 
grants  to  the  State,  of  land  or  other  property."  The  court 
holds  that  as  the  State  cannot  own  internal  improvements,  it 
cannot  authorize  a  city  or  town  to  own  them.  "This  would 
enable  the  State  to  do  by  means  of  agencies  called  into  being 
by  itself,  what  it  cannot  itself  do,  and  what  the  constitution 

purpose  is  no  less  public  when  that  article  Is  wool  or  coal  than  when  it  Is 
water  or  gas  or  electricity  or  education,  to  say  nothing  of  cases  like  the 
support  of  paupers,  or  the  talking  of  land  for  railroads  or  public  markets." 

In  150  Mass.,  592,  the  supreme  court  held  that  the  legislature  could 
grant  municipalities  the  right  to  make  and  sell  gas  and  electricity,  on  the 
ground  of  the  general  convenience  of  the  service,  the  impractiabilitu  of  each 
individual's  rendering  the  service  for  himself,  and  the  necessity  of  using  the 
strpfts  in  a  special  way,  or  exercising  the  right  of  eminent  domain;  whereas  the 
buying  and  soiling  of  coal  and  wood  does  not  require  special  use  of  the 
streets,  nor  the  right  of  eminent  domain, nor  the  exercise  of  any  other  fran- 
chise or  authority  derived  from  the  legislature. 

In  dealing  with  sewers,  water,  gas,  and  electric  works,  etc.,  courts  have 
sought  to  strengthen  their  conclusions  by  reference  to  the  necessity  of  a 
special  use  of  the  streets,  or  other  action  requiring  legislative  authority; 
but  they  did  not  decide  that  a  purpose  could  not  be  a  public  one  without 
this  element;  on  the  contrary,  schools,  libraries,  museums,  lodging  houses, 
hospitals,  baths,  scales,  markets,  etc.,  do  not  require  any  special  use  of  the 
streets  nor  any  franchise  or  rights  of  eminent  domain,  but  can  be  established 
by  any  one  without  legislative  authority.  As  to  impractiabiiity,  it  is  as 
impracticable  for  each  individual  to  establish  a  coal-yard,  and  get  coal  from 
tlie  mines  at  reasonable  rates,  as  it  would  be  for  each  individual  to  supply 
himself  with  schools,  libraries,  baths,  hay-scales,  etc. 

It  has  been  held  that  roads,  bridges,  sidewalks,  sewers,  ferries,  markets, 
scales,  wharves,  canals,  parks,  baths,  schools,  libraries,  museums,  hospitals, 
lodging-houses,  poor-houses,  jails,  cemeteries,  prevention  of  Are,  supply  of 
water,  gas,  electricity,  *eat.  power,  transportation,  telegraph  and  telephone 
j^ervice,  clocks,  skating-rinks,  musical  entertainments,  exhibitions  of  fire- 
works, tobacco  warehouses,  employment  offices,  etc.,  are  public  purposes,  and 
proper  subjects  of  governmental  ownership.  (See  Cooley  on  Taxation  and 
cases  cited.  A  municipality  may  be  authorized  to  build  and  own  a  street 
railway,  such  railway  serves  a  public  purpose.  Sun  Printing  and  Pub'. 
Assoc,  vs.  New  York,  46  N.  E.  Rep.,  499,  April  9,  1897.  Cities  and  towns 
may  be  authorized  to  establish  and  operate  gas  and  electric  light  works. 
New  Orleans  Gaslight  Co.  vs.  La.  Light  Co.,  115  U.  S.,  659,  670,  683.  Opinion 
of  Justices,  150  Mass..  592.  Citizens'  Gas  Light  Co.  vs.  Wakefield,  161  Mass., 
432.  Crescent  City  Gas  Light  Co.  vs.  New  Orleans  Gas  Light  Co.,  27  La. 
An.,  138,   147.) 

On  running  thru  the  cases  to  find  if  possible,  a  common  ground  of  de- 
cisiuu.  it  appears  that  whatever  is  of  general  utility  or  convenience  to  the 
coniiiiunity  constitutes  a  public  purpose. 


PUBLIC  OW^"ERSHIP  OF  PUBLIC  UTILITIES.  177 

forbids  its  doing."i  This  sounds  plausible,  but  is  in  fact 
wholly  fallacious.  An  essential  qualification  is  omitted  from 
the  statement  (just  quoted)  of.  the  principle  on  which  the 
court  bases  its  conclusion.  The  prohibition  in  respect  to  in- 
ternal improvements  is  upon  the  State,  not  upon  cities;  and 
the  mere  fact  that  the  State  cannot  do  a  certain  thing  does  not 
prevent  its  authorizing  others  to  do  that  thing,  unless  the 
reason  of  the  prohihition  on  the  State  is  that  the  sakl  thing 
is  im'&ng  in  itself,  which  is  clearly  not  the  case  with  internal 
improvements.^ 


1  Attorney  Genl.  v.  Plngree,  Supreme  Crt.  Mlcb.,  79  N.  W.,  Rep.  814. 

» The  logic  of  the  decision  would  prevent  the  legislature  from  authorizing 
the  ownership  and  operation  of  railroads,  street  railways,  telephones,  etc., 
l>y  private  corporations  as  well  as  by  municipal  corporations.  The  pri- 
vate corporations  of  Michigan  are  as  much  agencies  called  into  being  by 
the  legislature  as  the  cities  are;  and  if  the  State,  under  Sec.  9  of  Art. 
14,  cannot  authorize  an  agency  called  Into  being  by  itself  to  do  any  act 
the  State  can't  do,  then  the  said  Sec.  9  prevents  it  from  authorizing  a  pri- 
vate corporation  to  own  and  operate  a  street  railway  In  Michigan.  The 
fact  is  that  the  inability  of  the  State  to  do  an  act.  does  not  prevent  it 
from  authorizing  a  city  or  other  party  to  do  the  act  unless  the  prohibition 
is  based  on  the  wrongfulness  of  the  act  itself.  In  rhis  case  the  State 
is  prohibited  from  owning  and  operating  street  railways,  etc.,  not  because 
the  ownership  and  operation  of  railways  is  wrong  per  se,  but  because  the 
Constitution  makers  believed  it  was  not  wise  for  the  State  to  own  and 
operate  them.  That  this  is  the  ground  of  the  cinstitutional  provision  Is 
clear,  not  only  on  Its  face,  but  upon  the  history  of  the  adoption  of  the  clause 
which  Is  dwelt  upon  at  length  In  this  very  decision.  If  the  State  cannot 
authorize  a  municipality  to  do  an  act  the  State  cannot  do  itself,  then  the 
legisMture  cannot  authorize  a  city  to  elect  Municipal  Water,  or  Parli 
Commissioners,  or  otherwise  manage  Its  own  internal  business  aflflrs,  for 
the  Michigan  Supreme  Court  holds  emphatically  that  the  State  cannot  select 
such  officers  or  manage  such  afCalrs.  (People  v.  Hurlbut,  24  Mich.,  44; 
Board  of  Park  Commissioners  v.  Detroit,  28  Mich.,  228.)  If  the  State  cannot 
authorize  a  city  to  do  what  It  cannot  do  Itself  under  this  clause,  then  as 
the  State  cannot  own  any  internal  improvement,  It  cannot  authorize  a 
city  to  own  water,  gas  or  electric  light  works,  parks,  sewers,  drains,  fire 
hydrants,  etc.  This  last  point  was  raised  and  the  court  said  that  "all  these 
things  are  authorized  and  defended  because  it  Is  a  proper  exercise  of  the 
police  power."  Well  the  State  has  as  much  police  power  as  the  city;  can 
it  then  go  Into  the  gas  business,  or  the  electric  light  business?  Such  a 
move  would  be  a  clear  violation  of  Sec.  9,  Art.  14,  which  does  not  make 
any  exception  In  favor  of  water,  gas,  electric  light,  police  power  or  anything 
else,  except  the  expenditure  of  grants  to  the  State. 

If  the  law  had  been  held  void  for  excess  In  granting  Detroit  authority 
to  own  and  operate  street  railways  beyond  city  limits  without  due  restric- 
tions—If the  decision  of  unconstitutionality  had  been  based  on  the  ground 
that  the  law  under  consideration  authorized  Detroit  to  own  and  operate 
roads  beyond  city  limits  in  terms  so  broad  that  they  might  Include  a  system 
covering  the  whole  State,  if  any  such  system  existed  with  lines  lying 
partly  Inside  of  Detroit,  and  that  a  bill  creating  such  a  monopoly  was 
contrary  to  the  rights  of  other  municipalities  in  the  State,  there  might  have 
been  some  force  in  the  contention,  altho  even  in  that  case  the  practical  fact 
that  the  svstems  really  Intended  to  be  purchased  do  not  actually  extend 
bevond  reasonable  limits  might  well  be  held  sufficient  to  sustain  the  act, 
1.  e.,  the  law  might  be  held  void  as  to  the  excess  when  excess  arises  (if 
ever),  but  sustained  as  a  good  authority  on  the  actual  facts  of  the  case. 
But  to  decide  that  the  Constitution  prevents  cities  from  owning  street 
railwavs  because  the  State  cannot  own  them,  is  an  absurdity. 

The  argument  of  the  decision  breaks  down  at  every  point,  and  any  one 
who  will  read  it  carefully  will  see,  I  think,  that  the  judges  decided  as  they 
did  simplv  because  they  did  not  believe  In  city  ownership  of  street  railways. 
Their  notion  in  this  respect  may  be  correct,  but  it  is  not  well  to  have  such 
a   notion   erected   into   a   constitutional   prohibition. 

I  have  great  faith  in  the  courts,  and  have  had  many  a  battle  for  them 
with  some  of  my  friends.  Even  Professor  Bemis  thinks  me  very  conserva- 
tive on  this  point  and  perhaps  I  am.    If  so,   it  is  because  I  know  so  well 


178  THE  CITY  FOK  THE  PEOPLE. 

The  judges  are  quite  as  apt,  however,  to  go  to  the  full  lauit? 
of  the  law  in  sustaining  municipal  ownership.  Take  for  ex- 
ample the  Hamilton  gas  case,  in  which  it  was  decided  that 
under  the  Ohio  law  permitting  a  city  or  town  to  erect  or  pur- 
chase gas  works  whenever  the  council  deemed  it  expedient,  a 
city  could  erect  and  operate  municipal  gas  works,  altho  a  pri- 
vate company  had  previously  obtained  a  franchise  and  was 
operating  in  the  city.^ 

It  has  also  been  held  that  the  right  to  light  the  streets  and 
public  buildings  and  to  sell  (electric)  light  to  the  citizens  for 
their  houses  and  places  of  business,  is  within  the  implied 
police  powers  of  a  municipality  for  the  preservation  of  prop- 
erty and  health.* 

The  second  point  under  this  head  is  the  financial  one,  the 
matter  of  ways  and  means.    A  city  may 

1.  Build  works; 

2.  Buy  them  outright; 

3.  Buy  them  on  the  installment  plan; 

4.  Buy  a  controlling  interest  in  the  stock; 

5.  Have  a  provision  put  in  the  franchise  whereby 

the  plant  will  revert  to  the  city  free  of  debt 
and  without  further  payment  at  the  end  of 
the  term; 
6.  Or  rent  the  works  and  operate  them. 
Works  may  be  paid  for 

1.  Out  of  earnings; 

2.  By  ordinary  taxation; 

3.  By  assessments  on  property  the  value  of  which 

is  increased  by  the  works  ;** 


the  lofty  Ideals  that,  as  a  rule,  possess  the  judges  of  our  higher  courts, 
this  Michigan  court  among  the  rest.  But  mistakes  will  mar.  prejudices 
will  pervert,  and  precedents  will  fetter,  even  the  thought  of  the  best  minds 
at  times. 

•State  vs.  City  of  Hamilton,  47  Oh.  St.,  52;  Hamilton  Gas  L.  Co.  vs. 
Hamilton  City,  146  U.  S.,  258,  265-8  (1892).  For  a  similnr  opinion  iii  n.-spect 
to  electric  light  see  42  Fed.  Rep.,  72.3;  and  Municipal  Monopolies,  446. 

In  New  York,  the  courts  have  decided  that  a  city.  In  granting  a  (innchise 
for  water-works  does  not  debar  Itself  from  erecting  and  operating  a  plant  of 
its  own.  Mr.  Baker  says  the  Pennsylvania  courts  have  given  a  contrary 
opinion.  In  Montana  the  courts  have  decided  against  the  constitutionalK.y 
of  a  law  providing  that  no  municipality  supplied  by  a  private  company,  shall 
build  waterworks  without  first  buying  or  offering  to  buy  the  works  of  the 
con'i)Rny. 

*  City  of  Crawfordsville  vs.  Braden,  130  Ind.,  149. 

'  Thousands  of  owners  of  land  In  our  cities  and  their  suburbs  are  made 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  1  79 

4.  By  income  and  inheritance  taxes,  w^ich  vvhen 
progressive  constitute  a  powerful  means  of 
raising:  funds  for  public  purposes  from  those 
best  able  to  pay,  and  at  the  same  time  are 
equally  potent  as  a  means  of  counteracting  the 
congestion  of  wealth  in  few  hands. 
The  amount  to  be  paid  may  be  reduced  to  a  reasonable 
figure, 

1.  By  making  the  franchise  terminable  at  will; 

2.  By  preventing  or  eliminating  stock-watering  and 

overcapitalization — prevention  by  drastic  regu- 
lation, forfeiture  of  charters,  etc.;  elimination 
by  requiring  companies  to  write  off  liberal  de- 
preciation and  call  in  excessive  stock,  or  hold 
face  capital  where  it  is  till  the  real  value  comes 
up  to  it,  allowing  companies  a  reasonable 
period  in.  which  to  rid  themselves  of  excessive 
capitalization;  both  prevention  and  elimina- 
tion by  taxing  face  and  market  values. 

3.  By  careful  regulation  of  rates; 

4.  By  thoro  investigation  and  public  supervision 

of  corporation  bookkeeping; 

5.  By  competing  works.  ' 

Publicity,  reduction  of  rates  and  prevention  or  cutting 
down  of  inflated  capital,  are  of  the  first  importance.  The 
latter  is  even  more  fundamental  than  the  former  for  over- 
capitalization obstructs  due  reduction  of  rates.  The  taxation 
of  companies  upon  the  face  or  par  value  of  their  securities 
where  such  value  exceeds  the  worth  of  the  physical  plant  (or 
on  the  market  value  of  the  securities  if  this  is  higher  than  the 
face  value)  and  other  measures  to  prevent  and  reduce  over- 
capitalization seem  to  me  to  be  the  thin  edge  of  the  wedge — 
the  measures  which  under  ordinary  circumstances  should  come 
first,— as  a  preparation  for  full  and  effective  reduction  of 


rich  by  the  incitase  of  land  values  thru  the  construction  of  street  railways, 
water' works,  lighting  plants  and  telephone  exchanges,  the  laying  of  side- 
walks and  the  paving  of  streets.  It  would  be  perfectly  just  under  public 
ownership  to  take  a  part  or  the  whole  of  such  increase  of  values  to  pay 
for  the  works.  This  principle  is  already  applied  in  the  <'iise  of  ^avuig, 
sidewalks,  sewers,  etc.,  and  Its  application  could  be  extended  to  suburban 
railway  lines,  gas  mains  and  electric  light  and  telephone  systems. 


1  80  THE  CITY  FOR  THE  PEOPLE. 

rates  to  a  reasonable  level,  which,  together  with  fair  capitaliza- 
tion, constitutes  the  true  preliminary  to  public  purchase. 

Cnder  our  constitutions,  Federal  and  State,  the  courts  require 
that  in  taking  over  the  works  of  a  private  gas  or  water  or  street 
railway  company  the  city  shall  pay  the  market  value  of  the  prop- 
erty, including  the  franchise,  and  the  market  value  of  the  franchise 
Depends  on  the  length  of  its  unexpired  term  and  on  the  earnings 
of  the  company,  present  and  prospective,  so  that  the  higher  the 
rates  the  more  the  people  have  to  pay  for  the  franchise  which  very 
likely  the  company  got  for  nothing.' 

During  the  negotiations  in  Detroit  the  .street  railway  franchises, 
on  the  basis  of  earnings  and  unexpired  terms  were  estimated  to 
have  a  value  of  about  8  millions  or  substantially  equal  to  the  struc- 
tural value  of  the  whole  sjstem,  so  that  the  people  would  have  to 
pay  double  the  worth  of  the  physical  plant.  In  Washington,  D.  C, 
and  in  Massachusetts,  the  street  railways  have  no  franchise  terms. 
The  grants  may  at  anj'  time  be  altered  or  repealed.  In  Mass., 
water  works  and  bridges  have  frequently  been  taken  for  public 
use  at  or  near  the  structural  value  and  far  below  the  market  value 
indicated  by  their  earnings.' 

Efificient  measures  for  the  prevention  or  eradication  of  over- 
capitalization, and  for  the  reasonable  regulation  of  rates,  are  of 
g-reat  importance.  "Where  franchise  terms  exist,  such  measures  are 
often  absolutely  essential  in  pi-eparation  for  a  transfer  to  public 
ownership  at  a  just  price.  The  Mass.  commission  plan  will  do 
fiomethiuy  toward  keeping  down  fictitious  capital,  tho  it  lets  the 
capital  get  waterlogged  in  the  big  companies,  just  where  it  is  of 


'  Some  people  say  that  there  are  no  longer  any  "innocent  holders"  of 
forporate  stock,  and  insist  that  as  the  public  may  squeeze  the  water  out  of 
a  gas  plant  or  street  railway  or  other  monopoly  by  regulation  of  rates  and 
capitalization  or  by  competition,  therefore  it  may  do  the  same  thing  directly 
and  immediately  by  condemning  the  property  to  public  use  and  paying  only 
the  value  of  the  physical  plant.  The  trouble  with  this  is  that  it  is  impos- 
sible and  would  be  unwise  even  If  possible.  The  courts  and  the  constitutions 
are  in  the  way. 

The  time-honored  rules  of  law  and  establisht  conceptions  of  justice  are 
in  harmony  with  one  method  and  against  the  other.  A  long  line  of  decisions 
and  a  practically  unbroken  consensus  of  opinion  confirms  the  principle  that 
a  city  taking  property  by  eminent  domain  must  pay  its  market  value.  And 
a  franchise  is  as  much  "property"  as  a  building  or  a  railway  track.  Where- 
fore if  tracks  and  franchise  are  taken,  the  city  must  pay  the  market  value 
of  both,  which  is  indicated  by  the  market  value  of  the  company's  bonds  and 
stocks,  and  more  precisely  determined  by  the  cost  and  depreciation  of  the 
physical  plant,  and  the  term  and  earnings  of  the  franchise.  To  take  an  unex- 
pired franchise  without  compensation,  paying  only  for  the  physical  plant, 
runs  counter  to  the  judicial  sentiment  of  the  race  and  is  therefore  unwise 
in  spite  of  the  fact  that  by  the  deepest  principles  of  the  law  the  custom  of 
granting  private  franchises  should  never  have  arisen.  Having  been  granted 
its  market  value  must  be  paid  If  it  is  taken  by  eminent  domain.  On  the 
other  hand,  the  reduction  of  market  values  by  competition,  public  or  private, 
or  by  the  regulation  of  rates  or  capitalization,  is  recognized  as  just  and 
proper  by  an  equally  well  establisht  set  of  ideas  and  decisions.  When  there 
are  two  ways  of  accomplishing  a  purpose,  one  of  which  runs  counter  to 
establisht  Ideas  of  justice  and  the  other  is  in  harmony  with  those  ideas,  the 
wise  man  chooses  the  latter  plan. 

»  See  cases  cited  in  my  chapter  on  the  Legal  Aspects  of  Monopoly,  In 
"Municipal  Monopolies,"  p.  463,  et  seq.  In  England  the  law  allows  munici- 
palities to  buy  street  railways  at  the  structural  value  at  stated  periods,  the 
ends  of  franchise  terms,  21  years  first,  then  at  the  end  of  each  7  years. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  181 

most  importance  that  it  should  be  undiluted.  Laws  providing  for 
forfeiture  of  franchise  on  proof  in  court  of  serious  overcapitaliza- 
tion might  avail  more  than  the  commission  method  if  it  were  also 
provided  that  suit  for  this  purpose  might  be  brought  bj',  or  must 
be  brought  at  the  demand  of,  twenty  or  more  reputable  citizens. 
The  elmination  of  overcapitalization  may  be  secured  by  requiring 
the  companies  to  write  olf  liberal  depreciation  and  call  in  each 
3'ear  a  certain  amount  of  the  excessive  stock,  or  in  some  cases 
simply  holding  the  face  capitalization  where  it  is  until  improve- 
ments and  extensions  bring  the  real  value  up  to  it.  A  date  might 
be  fixed  after  which  it  should  be  unlawful  to  have  a  face  capital 
of  bonds  and  stocks  exceeding  the  actual  value  of  the  physical 
plant  plus  the  patents  or  other  privileges,  honestly  bought  and 
paid  for,  allowing  the  companies  15  or  20  years  for  the  gradual 
exudation  of  the  dead  matter  in  their  systems.  Of  all  the  measures 
for  preventing  or  reducing  over-capitalization,  however,  I  have  most 
faith  in  the  plan  of  taxing  corporations  on  valuations  not  less  than 
the  value  of  their  assets,  nor  less  than  the  par  values  of  their  securi- 
ties, nor  less  than  the  market  values  of  their  securities.  Take  the 
three  values  in  each  case  and  tax  the  company  on  the  one  that  is 
highest.  With  honest  execution  such  a  law  would  be  very  effective 
especially  if  a  strong  progressive  increase  of  taxation  were  awarded 
upon  the  excess  of  par  or  market  values  above  real  values. 

In  ^lassachusetts,  since  1871,  no  street  railwaj-  company  can  issue 
stock  till  the  par  value  is  paid  in  in  cash.  Since  1893  stockholders 
must  pay  market  value  for  new  stock.  In  1894  all  stock  or  script 
dividends  by  telegraph,  telephone,  gas,  electric  light,  railroad, 
street  railway,  aqueduct  and  water  companies  are  forbidden.  In 
1897  the  increase  of  capitalization  upon  consolidation  of  street  rail- 
ways was  forbidden.  The  issue  of  bonds  was  restricted  in  1889.  In 
1896  the  provision  that  no  increase  of  stock  could  be  made  in  excess 
of  the  structural  value  of  the  plant  and  the  cash  assets  was  re- 
pealed and  the  matter  was  left  with  the  commissioners.  This  was 
done  for  the  benefit  of  the  West  End  Company,  as  one  of  the  com- 
missioners informed  me.  This  is  a  step'back%vard,  but  the  Mass. 
laws  have  shown  what  can  be  accomplished  by  regulation  of  cap- 
italization, for  the  street  railway  capitalization  in  this  State  has 
fallen  from  $52,963  per  mile  in  Sept.,  1894,  to  $44,683  in  Sept.,  1897. 
The  average  capitalization  in  Ohio,  Indiana,  Illinois,  Michigan,  Wis- 
consin, Minnesota,  Iowa,  Missouri,  and  Kentucky,  was  $91,500  per 
mile,  or  more  than  twice  the  Massachusetts  figure,  altho  the 
number  of  cars  per  mile  averaged  3.78,  which  was  exactly  the 
same  as  in  Massachusetts. 

Massachusetts  franchises  are  liable  to  revocation  at  the  pleasure 
of  the  Legislature,  and  formerly  the  street  locations  of  tramways 
could  be  revoked  bj'  the  Aldermen.  But  in  1897  the  right  of  the 
city  government  to  revoke  street  railway  locations  in  the  streets 
was  made  subject  to  the  consent  of  the  Board  of  Railway  Commis- 
sioners, a  great  gain  for  the  companies. 


182  THE  CITY  FOE  TEE  PEOPLE. 

The  regulation  of  rates  is  most  important  as  a  means  of  squeez- 
ing the  water  and  fiction  out  of  corporate  capital.  By  such  regu- 
lation net  earnings  may  be  reduced  to  a  level  which  will  bring  the 
total  eminent  domain  valuation  somewhere  within  reasonable 
limits.  Gas,  water,  street  railway,  telephone  and  other  monopoly 
rates  may  be  regulated  by  the  Legislature  or  by  the  city  under 
Legislative  authorization,  and  probably  under  the  implied  authority 
of  the  municipal  police  power.*  The  only  limitation  is  that  the 
regulation  shall  be  reasonable.  Property  cannot  be  taken  for  public 
use  without  compensation  indirectly  thru  the  regulation  of  rates 
any  more  than  it  can  be  so  taken  directly.  What  amounts  to 
compensation  is  a  difficult  question.  It  has  been  held  that  a  rate 
is  constitutional  if  it  is  sufficient  to  cover  cost  of  service,  interest 
on  bonds,  and  some  dividend  which  latter  may  be  only  one  per 
cent,  or  even  less.*  Where  the  proposed  rates  will  give  some  com- 
pensation, however  small,  to  the  owners  of  the  property,  the  courts 
have  no  power  to  interfere.*  It  is  not  quite  settled,  however,  that 
courts  would  sustain  a  profit  of  1  per  cent,  or  less.^* 

It  is  clear  that  a  corporation  cannot  claim  rates  sufficient  to 
allow  dividends  on  excessive  capitalization.  The  U.  S.  Supreme 
Court  says  in  the  Nebraska  case: 

"If  a  raihxad  corporation  has  bonded  Us  property  for  an  amount  that 
exceeds  its  fair  value,  or  if  its  capitalization  is  largely  fictitious,  it  may 
not  impose  upon  the  public  the  burden  of  such  increased  rates  as  may 
be  required  for  the  purpose  of  realizing  profits  upon  such  excessive  valua- 
tion or  fictitious  capitalization." 

But  if  the  evidence  before  the  court  indicates  that  the  proposed 
rates  will  not  cover  operating  expenses,  as  was  the  case  in  the 
Nebraska  decision,  of  course  the  rates  will  not  be  sustained." 

Legislative  reduction  of  telephone  rates  from  $11.16  a  month  to 
$2.50  has  been  sustained." 

The  speed,  accommodations,  and  rates  of  street  railways  may  be 
regulated  under  the  police  power  of  a  State  or  municipality."  A 
State  may  order  a  street  railway  to  remove  snow  and  ice,  to  number 
and  license  cars,  to  limit  their  speed,  to  operate  more  cars,  etc." 


'  "When  a  business  becomes  a  practical  monopoly,  to  which  the  citizen 
Is  compelled  to  resort,  and  by  means  of  which  tribute  can  be  exacted  from 
the  community,  It  Is  subject  to  regulation  by  the  legislative  power."  (Brad- 
ley, J.,  Interpreting  the  Munn  case  in  Sinking  Fund  case,  99  U.  S.,  700,  747.) 

♦  In  35  Fed.  Rep.  879,  the  court  said:  "Compensation  implies  three  things 
— payment  of  cost  of  service,  Interest  on  bonds,  and  then  some  dividends," 
which  Justice  Brewer  declares  may  be  only  1  per  cent,  or  less.  Even  a 
lower  rate  than  this  rule  would  allow  may  be  entirely  constitutional  and 
perfectly  just  in  some  cases  as  was  pointed  out  by  the  Interstate  Commerce 
Commission  in  its  fourth  annual  report.  See  also  Larrabee's  Rd.  Question, 
p.    305. 

»  Chicago  &  N.  W.  Rd.  Co.  vs.  Dey,  35  Fed.  Rep.,  879.  If  any  compensa- 
tion is  left  above  proper  and  lawful  expenses,  the  reasonableness  of  the 
margin  is  a  legislative,  not  a  judicial  question,  143  U.  S.  546. 

i»  See   Milwaukee  Elec.   Ry.   &  L.   Co.  vs.   Milwaukee,   87  Fed.    Rep.   577. 

"  Smyth  vs.  Ames,  169  U.  S.,  466,  Mar.,  1898.  171  U.  S.  361,  May,  1898, 
commonly  known  as  the  Nebraska  Case. 

"Hockett  vs.  State,  105  Ind.  250;  106  Ind.  1;  118  Ind.  194. 

"Buffalo,  etc.,  Ry.  vs.  Ry..  Ill  N.  Y.  132  (1888);  117  Mass.,  544;  58  Pa., 
119;  95  111.,  313;  36  Neb.,  307;  22  N.  J.  L.  (2  Zab.)  623;  19  Minn.,  418. 

"  Frankford,  etc.,  Ry.  Co.  vs.  Phila.,  58  Pa.,  1in.  Booth  on  St.  Ry.  Law, 
p.  336. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  183 

A  statute  fixing  transfers  at  8  cents  is  good,''  so  is  a  law 
limiting  ferry  tolls  collected  of  street  railway  passengers,"  also  aai 
Act  reducing  fares  on  the  Buffalo  street  railways  to  5  cents."  The 
Legislature  has  a  right  to  fix  rates  on  street  ear  lines,  tho  no  such 
power  was  expressly  reserved,  and  tho  the  charter  says  "the  di- 
rectors shall  fix  rates."  " 

Upon  the  principle  that  control  of  street  railways  comes  under 
the  police  power  of  a  city,  Lincoln,  Nebraska,  fixed  street  car  rates 
at  6  rides  for  25  cents,  and  the  ordinance  was  held  good." 

Indiana  passed  a  law  reducing  street  railway  fares  in  cities 
having  a  population  of  100,000  or  more  according  to  the  U.  S.  census 
of  1890,  and  the  law  was  sustained  in  the  State  Supreme  Court  but 
held  void  in  the  Federal  Circuit  Court  because  it  was  a  special  act 
in  clear  violation  of  the  Constitution  of  Indiana. 

Reformers  should  be  careful  in  drawing  their  bills.  If  this  law 
had  said  "cities  of  100,000  or  more,"  it  would  probablj'  have  been 
sustained;  but  as  it  said  "cities  of  100,000  or  more  according  to  the 
census  of  1890,"  it  was  a  special  act,  there  was  only  one  city  to 
which  it  applied  or  ever  could  apply  and  the  author  of  the  bill 
might  as  well  have  written  "Indianapolis"  instead  of  the  circumlo- 
cution he  used.^ 

A  State  may  authorize  municipalities  to  fix  the  charges  of  a 
private  water  company.*'  Chief  Justice  Waite  said:  "Statutes  have 
been  passed  in  many  States  requiring  water  companies,  gas  com- 
panies, and  other  companies  of  like  character,  to  supply  their  cus- 
tomers at  prices  to  be  fixed  bj'  the  municipal  authorities. 

"That  it  is  within  the  power  of  the  government  to  regulate  the 
prices  at  which  water  shall  be  sold  hj  one  who  enjoys  a  virtual 
monopoly  of  the  sale,  we  do  not  doubt." 

Investigation  of  monopolies,  regulation  of  their  bookkeeping, 
and  public  supervision  of  their  accounts  are  very  necessary  to  form 
the  basis  for  laws  regulating  rates;  and  to  aid  the  enforcement  of 
such  regulations  and  of  proper  limitations  upon  stock  and  bonded 
capitalization.  There  is  no  doubt  that  very  complete  regulation 
and  publicity  of  corporate  accounts  would  be  sustained,  for  the 
courts  hold  that  monopolies  of  transportation,  water  supply,  etc., 
are  "performing  public  functions,"  and  are  subject  to  full  control. 

In  general  it  is  not  desirable  to  build  competing  works  because 


"  Wakefield  vs.  South  Boston  R.  B.  Co.,  117  Mass.,  544,  chap.  381,  §36, 
Laws  of  1871. 

"  Parker  vs.  R.  R.  Co.,  109  Mass.,  506. 

"  Buffalo  E.  S.  R.  R.  Co.  vs.  B.  S.  Rd.  Co.,  Ill  N.  Y.,  132,  chap.  600, 
N.  Y.  Laws.  1875. 

1*111.  Ceut.  Rd.  Co.  vs.  The  People,  95  111.  313;  the  legislature  has  a 
general  power  to  "define,  prohibit,  and  punish  extortion,"  p.  315. 

"  Maxwell.  C.  J.,  in  Sternberg  vs.  State,  36  Neb..  307,  317  (1893). 

^  For  a  much  fuller  discussion  of  this  case  and  of  the  whole  subject  of 
regulation  of  rates,  see  my  chap,  on  The  Legal  Aspects  of  Monopoly  in 
Municipal  Monopolies. 

"  Spring  Valley  Water- Works  vs.  Scliottler,  110  11.  S.,  347,  354. 


184  THE  CITY  FOB  THE  PEOPLE. 

of  the  absolute  economic  waste  entailed  and  because  it  is  a  resort 
to  a  method  beneath  the  dignity  and  conscience  of  a  public  body. 

When  a  city  wishing-  to  establish  public  works  is  already  in- 
debted up  to  the  limit  allowed  by  law  or  near  it,  or  in  any  case 
where  it  wishes  to  secure  the  works  with  little  or  no  resort  to 
loans,  the  choice  lies  between  the  installment,  franchise,  stock  pur- 
chase and  rental  methods. 

A  city  may  rent  the  tracks  of  a  street  railway  company,  operate 
the  cars  and  pay  for  the  road  out  of  earnings.  Or  it  may  have  its 
agents  openly  or  secretly  buy  a  controlling  interest  in  the  stock, 
and  then  operate  the  system  and  make  it  pay  for  itself  out  of  earn- 
ings. Or  it  may  contract  with  private  parties  to  build  or  buy  the 
plant  and  allow  the  city  to  pay  for  it  in  installments  from  the 
earnings,  if  the  city  assumes  the  operation,  or  from  the  yearly 
taxes  if  the  private  parties  operate  the  plant  till  the  payments  are 
complete.  Or  it  may  be  provided  in  the  franchise  agreement  that 
in  consideration  of  the  franchise  term  the  tracks  or  lighting  plant, 
etc,  shall  become  the  property  of  the  city  from  the  start  or  at 
the  end  of  the  term  without  further  payment.  Or  it  may  be  pro- 
vided that  after  a  certain  date  the  city  may  purchase  at  the  actual 
value  of  the  physical  plant  and  then  the  city  may  lay  by  each  year 
a  certain  sum  from  the  yearly  taxes  to  build  up  a  fund  for  such 
purchase.  Or  the  company  may  be  required  to  pay  into  the  public 
treasury  each  year  a  percentage  of  receipts  sufficient  or  more  than 
suflBcient  to  provide  the  means  for  said  purchase  at  the  end  of  the 
term. 

The  French  Government  granted  j;elephone  franchises  to  private 
companies  on  condition  that  they  should  pay  10  per  cent,  of  their 
gross  receipts  to  the  State,  and  that  the  State  should  have  the  right 
to  fix  rates,  and  to  buy  the  system  at  the  end  of  the  five-year 
franchise  for  the  value  of  the  materials  employed  in  it.  When  the 
government  took  the  lines  the  10  per  cent,  receipts  had  more  than 
covered  the  purchase  price  under  the  agreement. 

Berlin's  agreement  with  the  Berlin  Electric  Works  Company  se- 
cures the  city  10  per  cent,  of  the  gross  receipts  plus  25  per  cent,  of 
all  profits  above  6  per  cent,  on  the  actual  capital  invested,  and  very 
low  rates  for  public  lighting.  The  agreement  also  fixes  the  rates 
to  be  charged  private  parties,  and  no  departures  from  t^ese  rates 
can  be  made  without  assent  of  the  city  authoritites.  The  city 
authorities  retain  the  fullest  rights  of  inspection,  both  technical 
and  financial,  and  all  the  campany's  affairs  are  open  to  the  knowl- 
edge of  responsible  public  officials.  A  deposit  of  250,000  marks  is 
required  from  the  company  to  hold  it  down  to  the  rules  as  to 
laying  wires,  etc.  Finally  the  city  reserves  the  right  to  buy  the 
plant  after  7  years  at  a  fair  valuation  carefully  provided  for  in  the 
contract.  Dr.  Albert  Shaw,  from  whose  "Municipal  Government 
in  Europe"  this  Berlin  agreement  is  condenst,  says  on  p.  350,  "In 
studying  these   German   contracts   one   is   always   imprest   with   a 


PUBLIC  0\V^•EKSHIP  OF  PUBLIC  UTILITIES.  185 

sense  of  the  first-class  legal,  financial  and  technical  ability  that 
the  city  is  able  to  command;  while  American  contracts  always  im- 
press one  with  the  unlimited  astuteness  and  ability  of  the  gentle- 
men representing  the  private  corporations." 

Berlin  has  recently  extended  the  franchises  of  its  street  railway 
companies  till  1920  under  the  following  conditions: 

1.  The  companies  are  to  unite  and  convert  the  entire  system  to 
electric  traction. 

2.  Extensions  to  be  made  as  the  city  orders;  the  city  to  pay  a 
part  of  the  cost  of  construction  after  1901 — 1/3'  at  first,  i/g  after 
1907,  and  the  whole  after  January  1,  1914. 

3.  The  overhead  trolley  to  be  used  except  where  the  city  may 
require  storage  batteries  or  other  motor  system,  on  just  arrange- 
ments as  to  increased  cost. 

4.  City  to  have  8  per  cent  of  the  gross  receipts  within  city  limits 
and  14  the  excess  of  net  income  over  12  per  cent,  on  present  capital 
and  6  per  cent,  on  any  additional  capital. 

5.  Company  to  pave  streets. 

6.  No  "running  boards"  for  conductors  on  the  outside  of  cars 
to  be  used,  and  motormen  not  to  work  over  10  hours  a  day,  except 
on  special  occasions. 

7.  After  3  years  fares  shall  not  exceed  21/2  cents  within  the  city, 
nor  to  the  end  of  ever^^  line  in  20  enumerated  suburbs.  Commu- 
tation and  scholars'  tickets  at  reduced  rates,  and  also  workingmen's 
fares  at  certain  hours. 

8.  At  the  end  of  the  term  all  property  of  the  company  located 
in  the  streets  or  on  city  land,  and  all  patents  come  to  the  city  with- 
out payment. 

9.  Disputes  to  be  settled  by  arbitration. 

10.  The  company  to  establish  a  pension  fund  for  all  employees. 
Leipsic  has  an  admirable  lighting  contract,  one  part  of  which  pro- 
vides that  at  the  end  of  the  franchise  term  the  works  shall  become 
the  property  of  the  city  without  cost.  In  Hamburg  the  street  rail- 
way tracks  revert  to  the  city  at  the  end  of  the  charter  period.  In 
1894  an  outside  company  offered  to  build  a  plant  of  1000  electric 
lights  in  Minneapolis  and  sell  it  to  the  city  for  $1  at  the  end  of  a 
5-year  franchise,  if  meanwhile  it  might  receive  $150  per  arc  per 
year,  which  was  the  price  the  old  company  was  getting.  The  city 
engineer  investigated  the  matter  and  found  that  the  new  company 
could  afford  to  make  the  offer.  But  the  contract  with  the  old  com- 
pany was  renewed  for  5  years  at  the  old  rate  of  $150  per  light.  That 
is,  the  city  gave  away  a  thousand  arc  plant.  Do  you  ask  why? 
Well,  the  old  company  had  "influence." 

In  1891  the  franchise  of  the  Toronto  street  railway  expired.  The 
city  paid  the  appraised  value  of  the  physical  plant,  $24,640  a  mile, 
and  operated  the  road  for  six  months  at  a  profit  of  $25,000  a  month. 
Then  the  city  council  of  24  members  decided  by  a  majority  of  one 
to  sell  the  system,  which  was  done  on  the  following  conditions: 


186  THE  CITY  FOE  THE  PEOPLE. 

First:  The  company  to  pay  the  city  $800  a  j'ear  for  each  mile  of 
single  track,  plus 

8  per  cent,  on  gross  receipts  up  to  one  million  dollars, 
10  per  cent.    "       "  "        between  1  and  1^4  millions, 

12  per  cent.    "       "  "  "  li/g  and  2  millions, 

15  per  cent.    "       "  "  "  2  and  3  millions, 

20  per  cent.    "       "  "        above  3  millions. 

This  means  about  15  per  cent,  of  the  total  income  in  Toronto 
with  91  miles  of  track  and  a  little  over  a  million  receipts  ($1,077,600). 
In  Boston  it  would  mean  about  20  per  cent  of  the  gross  receipts  of 
the  railways,  or  1  &  1/3  millions  a  year,  and  in  Philadelphia,  with  450 
miles  of  track  and  almost  11  millions  of  receipts,  a  Toronto  contract 
would  mean  nearly  21  per  cent,  of  the  receipts,  or  2^4  millions  a  year 
in  the  city  treasury. 

Second:  Five  cents  for  a  single  cash  fare;  25  tickets  for  $1,  or  6 
for  a  quarter;  tickets  good  from  5.30  A.  M.  till  S  A.  M.,  and  from 
5  to  6.30  P.  M.  (the  hours  in  which  the  great  body  of  working  people 
go  to  and  from  w^ork),  8  for  a  quarter,  or  3  cents  a  ride;  school 
children's  tickets,  good  from  8  A.  M.  till  5  P.  M.,  10  for  a  quarter, 
or  2%  cents  a  ride;  half  fare  for  children  under  9.  Fares  on  night 
cars  double  the  single  day  rate;  free  transfers  thruout. 

Third:  City  engineer  to  have  control  in  respect  to  number  of  cars 
run,  speed,  improvements  to  be  introduced,  removal  of  snow,  repairs 
of  streets,  etc.  The  system  to  be  transformed  from  horse  to  elec- 
tric, and  extensions  to  be  made  from  time  to  time' as  directed  by  the 
city  authorities. 

Fourth:  The  company's  system  of  bookkeeping  to  be  subject  to 
approval  of  city  treasurer  and  city  auditors,  and  all  the  company's 
books  and  accounts  to  be  subject  to  monthly  audit  by  city  auditors. 

Fifth:  Employees  not  to  be  required  to  work  over  10  hours  a  day, 
nor  more  than  6  days  a  week,  nor  for  less  than  15  cents  an  hour. 

Sixth:  At  the  end  of  20  years  (or  30,  since  the  franchise  may  be 
"renewed  for  a  term  of  10  years,  and  no  longer")  the  city  may  take 
the  plant  at  its  actual  physical  value  as  determined  by  arbitration. 

The  Eeview  of  Reviews  for  AugTist,  1894,  says  that  "This  contract 
is  the  most  complete  and  satisfactory  municipal  franchise  that  has 
ever  been  granted  in  America.  It  ought  to  form  a  model  for  the 
cities  of  the  United  States."  Yet  under  this  contract,  fine  as  it  is, 
the  city  received  only  $10,000  a  month  from  the  railroads  in  1892  as 
against  $25,000  a  month  under  public  ownership  in  1891,  which 
would  cover  depreciation  and  interest  and  still  leave  more  than 
the  net  income  under  the  agreement.  In  1897,  with  a  large  increase 
in  mileage  and  traffic,  the  city's  share  amounted  to  about  $14,000  a 
month.  The  company  realized  $20,000  net  per  month  in  1894, 
$30,000  in  1895,  $31,000  in  1897.  In  the  latter  year  it  paid  interest 
on  $33,000  of  bonds  per  mile,  or  enuf  in  all  probability  to  duplicate 
the  road  (4.8  cars  to  a  mile),  and  had  a  profit  of  4.5  per  cent,  on 
$66,000  of  stock  per  mile,  all  water.  The  company  has  invested 
about  3  millions,  including  the  purchase  price  and  the  cost  of  chang- 
ing from  horse  to  electric  traction.  It  has  issued  3  millions  of 
bonds  and  6  millions  of  stock,  and  the  stock  was  selling  at  80  cents 
on  the  dollar  in  1896,  probably  more  now — 9  millions  of  capitalization 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  187 

anil  nearly  8  millions  of  market  value  on  a  plant  worth  less  than 
3  millions,  and  the  people  pay  interest  and  dividends  on  the  excess 
of  value,  in  spite  of  the  famous  contract  which  is  really  very  ad- 
mirable as  a  contract,  but  still  vastly  inferior  to  municipal  owner- 
ship, which  would  give  the  people  still  lower  rates,  banish  the  water 
and  put  all  the  profits  in  the  public  treasury.  The  gfross  receipts 
run  nearly  16  cents  per  car  mile,  and  the  operating  expenses  are 
under  8  cents.  The  average  receipts  per  passenger,  including  the 
night  rat€S,  are  4i4cents,  and  the  cost  per  passenger,  exclusive  of 
franchise  tax  is  about  2  cents.  With  municipal  ownership,  free  of 
debt,  a  uniform  2  cent  fare  could  be  made,  and  the  increased  traffic 
would  certainly  take  care  of  depreciation  and  a  moderate  payment 
to  the  public  good. 

It  is  said  that  the  councils  did  not  intend,  when  they  took  the 
roads,  to  continue  public  operation  any  longer  than  necessary  to 
make  the  sort  of  contract  they  desired.  It  might  be  thought  that 
the  success  of  public  operation  would  have  changed  this  intention. 
In  trying  to  understand  the  excessive*  capitalization  and  also  why 
the  city  council  voted  as  it  did  after  the  great  success  of  municipal 
operation  in  1891,  one  may  get  some  help  from  the  statement  of 
one  of  the  counsel  of  the  road  to  Dr.  Charles  B.  Spahr,  of  The 
Outlook,  that  the  capitalization  is  not  excessive  because  two  of  the 
original  four  who  received  the  franchise  had  sold  out  after  doubling 
their  money,  and  the  owners  of  the  franchise  were  entitled  to  com- 
pensation for  the  vast  amount  of  credit  they  had  to  command  in 
order  to  take  the  franchise  and  also  their  labor  in  agitating  against 
municipal  ownership! 

In  1894  Springfield,  Illinois,  was  paying  $138  per  arc  of  2000  candle 
power  on  the  moon  schedule,  i.  e.,  burning  dark  nights  only.  The 
city  knew  the  price  was  exorbitant,  but  the  company  (which  con- 
trolled the  gas  plant  as  well  as  the  electric)  presented  a  signed 
statement  that  the  cost  of  the  service  was  $117  per  light,  and  re- 
fused to  come  below  $120  anyway.  The  city  wisht  to  build,  but  had 
reacht  the  limit  of  its  borrowing  power.  So  it  made  a  contract 
with  60  citizens  by  which  the  latter  were  to  form  a  company  and 
build  and  operate  a  plant,  the  city  paying  $113  per  arc,  $53  of  each 
$113  to  go  toward  pacing  for  the  works,  and  all  profits  arising  from 
the  administration  of  the  plant  to  be  applied  on  the  capital  account. 
When  the  works  are  paid  for  by  these  means  they  become  the  prop- 
erty of  the  city.  The  60  citizens  put  in  $1000  each,  built  the  plant, 
leased  it  to  two  electricians,  who  agreed  to  suppply  light  at  $60 
per  arc  ($43  operating  cost  and  7  per  cent,  interest  on  the  capital, 
7  per  cent,  being  what  the  banks  charged  for  the  money  loaned). 
The  public  buildings  are  lighted  with  incandescents  (800)  free  of 
charge  (a  gift  of  at  least  $1800  to  the  city),  and  25  per  cent,  of  the 
gross  receipts  for  commercial  lighting  are  credited  to  the  city.  It 
is  estimated  that  in  five  years  from  the  start  the  plant  will  be  paid 
for,  and  then  it  will  belong  to  the  city  free  of  debt,  and  the  people 
will  get  electric  light  at  cost.  By  this  plan  the  city  has  incurred 
no  debt,  has  not  increased  taxation,  but,  on  the  contrary,  has  di- 


188  THE  CITY  FOR  THE  PEOPLE. 

minisht  it,  and  the  public  spirit  and  co-operative  feeling'  of  th* 
citizens  has  been  brought  into  play.  The  lessees  get  operating  ex- 
penses and  interest  from  the  city  arcs  and  75  per  cent,  of  the  com- 
mercial receipts,  which  yields  them  a  good  return,  altho  commer- 
cial rates  have  been  reduced  40  per  cent  belowr  what  they  were  in 
June,  '95,  when  the  company  started.  In  June,  '98,  the  company 
had  credited  the  city  with  over  $60,000  profits,  leaving  about  $51,000 
debt  on  the  whole  plant  for  municipal  and  commercial  lighting.  In 
two  or  three  years  the  plant  will  come  to  the  city  clear,  street 
lights  will  be  operated  at  a  cost  of  about  $40,  probably,  and  the 
commercial  lighting,  even  at  the  present  low  rates,  w^ill  yield  enuf 
to  cover  all  the  cost  of  the  public  lighting. 

Contractors  have  offered  Des  Moines  to  build  a  good  plant  and 
operate  500  arcs  all  night  and  every  night  for  $62.50  each,  the  city 
to  levy  a  2  mill  tax  for  two  years,  which,  with  the  saving  to  the 
yearly  electric  light  fund,  will  pay  the  cost  of  the  plant  ($105,000 
for  600  arcs  and  1500  incandescents)  in  about  2  years. 

Indiana  has  a  law  authoaizing  the  construction  of  water  works 
by  companies,  with  a  contract  provision  that  the  city  by  annual 
payments  to  the  company  should  become  the  owner  of  the  works 
at  a  time  stated. 

In  Great  Britain,  under  the  Tramways  Act  of  1870,  municipalitiei* 
may  build  their  own  tramways  if  they  so  desire,  or  if  the  lines 
are  built  by  a  private  companj',  then  at  the  end  of  21  years  and 
of  each  subsequent  franchise  period  of  7  years,  the  town  or  citj- 
has  two  years  in  which  it  may  buy  the  railways  at  the  actual  value 
of  the  physical  plant.  About  one-fourth  of  the  tramways  (with  40 
per  cent,  of  the  mileage)  in  England  and  Scotland  are  owned  bv 
the  municipalities,  and  additions  to  the  list  are  being  made  as  fast 
as  the  franchise  periods  come  to  an  end. 

Most  of  the  cities  owning  railways  have  leased  them  on  terms 
which  will  cover  in  21  years  the  principal  and  interest  of  the  debt 
incurred  for  building  or  purchase,  and  in  many  cases  the  city  re- 
ceives a  considerable  annual  payment  beyond  what  is  needful  for 
interest  and  sinking  fund. 

In  Manchester  the  lines  were  built  in  1877,  and  the  rentals  to 
1895  amounted  to  $1,275,000,  while  the  total  cost  of  the  lines  wa!> 
but  $725,000.  In  1900  the  city  will  receive  a  valuable  railway  prop- 
erty in  good  condition,  and  free  of  debt,  and  can  use  its  revenues 
to  accomplish  a  considerable  reduction  in  taxation,  or  render  a 
service  to  the  mass  of  the  people  bj'  putting  fares  down  to  the 
level  of  cost. 

Before  1896  it  was  not  easy  to  obtain  i^ermission  for  naunicipal 
operation  of  street  railways.  A  few  permissions  had  been  given 
but  the  House  of  Commons  had  a  standing  order  forbidding  the 
introduction  of  any  bill  for  such  a  purpose.  In  1896,  however,  the 
order  was  rescinded  and  the  door  thrown  open.  An  act  allowing 
Sheffield  to  operate  street  railways  was  unanimously  passed,"  and 


*■-  Shefflold  took  the  railways,  increased  wagos  10  per  oent..  provided  un!- 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  189 

other  pities  soon  obtained  similar  powers.  There  are  now  43  train« 
Avaj'S  owned  by  municipalities  and  117  by  private  companies,  the 
mileage  being  620  public  and  934  private.  Of  the  public  owned 
tramways,  16  with  318  miles  of  track  are  operated  as  well  as  owned 
by  municipalities.  One  of  these  lines  with  48  miles  of  track  is  m 
London.     (See  Appendix  II.) 

The  English  electrical  journals  report  that  the  London  County 
Council  has  determined  to  acquire  the  street  railways  as  fast  as  the 
franchises  expire.  A  strong  syndicate  has  offered  to  take  all  thts 
tramways,  rebuild  them  for  electric  traction  with  the  underground 
conduit,  put  the  owneiship  of  the  tracks  and  conduit  in  the  county 
council  at  once  icithout  consideration,  and  pay  a  yearly  rental  to  the 
city  equal  to  the  entire  net  earnings  of  the  existing  roads  for  the 
preceding  year,  on  condition:  (1)  That  a  28-y ear's  lease  shall  be 
given  the  syndicate.  (2)  That  the  equipment  and  power  plant  shall 
belong  to  the  syndicate,  and  shall  be  bought  by  the  Council  at  the 
end  of  the  lease  at  a  valuation  to  be  determined  by  arbitration. 
(3)  That  no  regulations  shall  be  imposed  upon  the  syndicate  as  to 
service  or  employees.  The  Council  objected  to  the  latter  condition 
and  were  doubtful  of  the  desirability  of  the  conduit  system,  so 
that  the  offer  was  not  accepted,  but  it  shows  very  clearly  the 
willingness  of  capital  to  build  even  the  most  expensive  systems, 
pay  large  rents  for  franchises  and  at  the  end  of  the  term  turn 
over  the  plant  to  the  city  at  a  cost  that  is  practically  nothing, 
since  the  sj  ndicate  was  to  receive  no  pay  for  the  tracks,  and  only 
the  actual  value  for  equipment  and  power  plant  which  would  be 
much  more  than  covered  by  the  franchise  rentals. 

In  Australia  it  is  said  the  common  method  is  for  the  city  to  build 
the  tramways  with  money  borrowed  from  the  State,  and  then  lease 
the  roads  for  20  or  30  years  under  conditions  requiring  the  lessees 
to  take  care  of  the  debt  and  return  the  roads  to  the  city  free  of 
incumbrance  at  the  expiration  of  the  term. 

In  ^lilan,  a  city  of  44,000  population,  the  horse  roads  with  a  2 
cent  fare  paid  the  city  10  per  cent,  of  their  gross  receipts.  The 
new  Edison  Electric  Company  has  bought  the  horse  roads  and 
obtained  a  new  franchise  for  20  years  from  Jan.  1,  1897.  The 
company  is  to  hand  over  all  the  tramways  to  the  city,  which  is  to 
convert  them  for  electric  traction,  and  then  the  Edison  Co.  is  to 
equip  and  work  them  on  the  overhead  system.  Of  the  total  receipts 
the  company  is  to  get  7.72  cents  per  car  mile  for  operation.  From 
the  remainder  a  fixed  sum  per  mile  is  to  go  to  the  city  to  cover 
depreciation  and  maintenance  of  the  permanent  way.  Of  the 
balance  60  pa-  cent,  goes  to  the  city  and  JfO  per  cent,  to  the  company. 
The  city  regulates  the  service  and  the  number  of  cars  to  be  run, 
and  has  fixt  the  fares  at  2  cents  all  the  way  out  from  the  centre, 
with  one  cent  fares  night  and  morning  for  working  people. 


forms  for  the  men,  reduced  fares  10  per  cent.,  and  made  a  surplus  In  1896-7 
of  ?40.000  above  Interest  and  sinking  fund,  or  6  per  cent,  on  the  capital  or 
$650,000. 


190  THE  CITY  FOR  THE  PEOPLE. 

In  Budapest,  the  capital  of  Hungary,  a  city  of  about  500,000 
inhabitants,  the  street  railways  were  built  by  private  capital,  and 
at  the  expiration  of  existing  charters,  the  roads  and  their  equip- 
ment are  to  be  the  property  of  the  city  without  payment  to  the 
private  owners.  The  fares  are  fixt  by  law  and  average  214  cents 
per  passenger.  Heavy  taxes  are  paid  to  the  city,  a  good  reserve 
fund  and  a  fund  for  the  care  of  employees  are  provided,  and  after 
all  the  electric  roads  pay  8  per  cent,  dividends  on  the  investment. 
The  underground  conduit  is  used  in  the  centre  of  the  city,  and  the 
overhead  system  in  the  outer  districts.  All  books  and  accounts  of 
the  companies  are  open  to  public  inspection. 

In  a  number  of  our  States  laws  have  been  passed  enabling  cities 
and  towns  to  own  and  operate  water,  gas  and  electric  plants,  street 
railways  and  telephones  being  sometimes  added,  and  municipal 
power  to  grant  street  franchises  is  g^iven  (see  Chapter  III)  so  that 
cities  in  such  States  can  make  contracts  similar  to  those  adopted  in 
Europe. 

Before  leaving  this  important  subject  of  method  I  should 
like  to  suggest: 

1.  The  advantage  of  putting  public  works  under  the  con- 
trol of  non-partisan  boards  or  boards  which  must  be  com- 
posed of  members  from  each  of  the  leading  parties,  as  in  the 
Wheeling  Gas  Board. 

2.  The  importance  of  a  provision  such  as  that  which  pro- 
tects the  Richmond  works,  by  prohibiting  the  sale  or  lease  of 
public  plants  except  upon  a  referendum  vote  of  the  people  to 
that  effect.  This  will  nail  down  the  coffin  lid  of  corporate 
monopoly.  When  works  become  public  under  such  a  pro- 
vision they  are  protected  from  being  purposely  run  down  and 
injured  in  order  to  give  apparent  reason  for  a  retransfer  to 
private  operation,  as  in  the  case  of  the  Philadelphia  gas  works. 
The  referendum  clause  discourages  the  corporation  schemers, 
and  they  are  far  more  likely  to  let  the  plant  alone. 

3.  More  important  than  all  the  rest,  perhaps,  is  this  final 
recommendation :  that  every  city  council  be  supplied  with  a 
small  number  of  good  books  on  economic  and  political  sub- 
jects. The  list  should  include  the  writings  of  Dr.  Shaw, 
Henry  D.  Lloyd,  Professors  Ely,  Bemis,  Commons,  Jenks, 
and  Gov.  Pingree.  If  the  discerning  reader  feels  inclined  to  put 
this  book  also  in  the  list,  we  shall  not  object.  The  publica- 
tions of  the  National  Municipal  League  and  the  League  of 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  191 

American  Municipalities,  and  the  reports  of  famous  investi- 
gations into  municipal  and  corporate  affairs  such  as  the  Bay 
State  Gas,  West  End  Street  Railway,  Broadway  Franchise, 
Cleveland  Gas,  l^ew  York  Gas,  Philadelphia  Gas,  Tweed 
Ring,  Chicago  Street  Railway,  St.  Louis  Street  Railway,  New 
York  Special  Street  Railway  Committee's  Report,  Massachu- 
setts ditto,  Glasgow  ditto,  etc.,  should  certainly  be  included. 

It  would  greatly  add  to  the  value  of  such  a  little  library  if  ' 
a  competent  expert  would  go  thru  the  books  and  niark  the 
most  important  passages  with  black  and  blue  and  red,  make 
brief  marginal  notes  and  cross  references,  and  paste  on  the 
inside  of  the  front  cover  a  brief  index  bringing  together  the 
best  points  of  the  book  under  the  heads  most  likely  to  be  of 
use  to  members  of  council.  ^^ 

Some  of  the  principal  politico^economic  periodicals  might 
be  added  "wdth  advantage,  and  arrangements  should  certainly  be 
made  to  obtain  the  yearly  reports  of  leading  public  works  such 
as  the  Wheeling,  Detroit  and  South  Norwalk  lighting  plants, 
the  Glasgow  Street  Railways,  etc.,  and  the  complete  reports 
of  a  few  progressive  cities  and  towns  such  as  Boston,  Brook- 
line,  Springfield,  Glasgow,  Birmingham,  etc. 

The  city  council  of  Ithaca,  N.  Y.,  set  the  example  in  Feb- 
ruary', 1898,  by  appropriating  $25  for  books  on  municipal 
questions  for  the  use  of  councils.  The  Hon.  Josiah  Quincy, 
the  progressive  Mayor  of  Boston,  has  an  admirable  little  de- 
partment of  municipal  statistics  and  general  information,  with 
an  excellent  man  at  the  head  of  it,  but  it  is  not  located  so  as 
to  make  it  likelv  that  councilmen  will  become  saturated  with 
facts  thru  its  instrumentality. 

The  plan  suggested  for  councils  would  be  valuable  also  in 
high  schools.  Christian  associations,  labor  unions,  and  young 
men's  societies  of  every  sort.  It  is  simply  the  plan  followed  in 
the  best  colleges,  of  making  little  special  libraries  by  grouping 
together  the  principal  books  relating  to  a  given  subject,  plus 

='I  am  authorized  by  the  Trustees  to  state  that  any  9«ty^  Council  sending 
$25  or  $50  or  $100  to  the  "College  of  Social  Science"  '«'»l^e  supplied  with 
a  number  of  books  proportionate  to  the  remittance  markt  and  indext  as 
suggested,  a  reasonable  charge  for  marking  being  added  to  the  ord  nary  price 
of  the  books.  With  a  $50  or  $100  set  there  will  be  sent  «,  little  index  book 
consolidating  the  chief  references  in  all  the  books  "nder  the  leading  muni 
cipal  topics  Pr.  C.  F.  Taylor,  1520  Chestnut  Street,  Philadelphia,  is  treas- 
urer of  the  College. 


192  THE  CITY  FOR  THE  PEOPLE. 

my  own  methotl  of  marking  and  marginal  notes,  cross  refer- 
ences and  analytic  indexing,  that  enables  one  to  collate  with 
ease  all  the  material  he  has  upon  any  specific  point. 

Experience. 

Under  this  head  many  volumes  might  be  wi-itten  describing 
the  successes  of  public  ownership,  the  mistakes  that  have  been 
made  here  and  there  and  the  precautions  that  should  be  taken 
to  prevent  similar  errors  in  the  future.  We  have  already 
spoken  of  the  Brooklyn  Bridge  Railway  with  its  efficient  ser- 
vice, wonderful  freedom  from  accident,  and  admirable  treat- 
ment of  employes.  We  have  stated  the  facts  about  some  of 
the  public  telephones,  the  Springfield  electric  plant,  the  Lo- 
gansport  and  Jamestown  works,  etc.,  and  hinted  at  the  great 
successes  in  Richmond,  Wheeling,  South  Norwalk,  Allegheny, 
Detroit,  and  other  cities.  In  this  section  I  will  confine  myself 
to  three  additional  illustrations  selected  from  widely  different 
fields;  the  water  works  of  ISTew  York  State,  the  municipal  un- 
dertakings of  Glasgow,  and  the  experience  of  England  Avitli 
the  telegraph. 

The  facts  about  the  water  works  of  New  York  State  I  take  fi'om 
a  thesis  prepared  in  1896  by  Almon  E.  Smith,  one  of  Professor 
Commons'  students  in  Syracuse  University.  Table  I  divides  the 
cities  and  towns  of  New  York  into  ten  groups  according  to  popula- 
tion from  below  1,000  to  2,000,000.  The  number  of  cities  in  each 
group  having  public  water  works  and  the  number  having  private 
works  appears  in  columns  2  and  3.^ 

It  will  be  seen  from  columns  4  to  14,  that  the  miles  of  mains, 
number  of  taps  and  hydrants,  and  consumption  of  water  per  family 
are  all  greater  in  places  having  public  works  than  in  places  served 
by  private  companies.  This  indicates  greater  efficiency  and  moi-e 
general  use  and  satisfaction  under  public  ownership.  In  the  vast 
majority  of  cases  there  is  not  only  a  contrast,  but  a  very  emphatic 

'  Data  on  all  points  were  not  obtained  from  all  the  cities  but  the  facts 
were  secured  for  a  sufliclcnt  number  of  municipalities  to  make  valuable  com- 
parisons except  in  the  eighth  and  tenth  groups.  In  the  first  group  3  and  10, 
4  and  12,  3  and  11,  4  and  11,  3  and  6,  3  and  6,  3  and  6  represent  the  number 
of  public  and  private  plants  reporting.  In  the  second  group  the  numbers  are 
23  and  37,  30  and  46,  24  and  39,  30  and  44,  9  and  13,  21  and  26,  20  and  26, 
20  and  25.    In  the  third  group  the  numbers  are  9  and  19,  11  and  23,  9  and  19, 

11  and  21,  5  and  7,  8  and  8,  9  and  9,  8  and  10.     In  the  fourth  group,  9  and  19, 

12  and  18,  10  and  18,  11  and  18.  6  and  12,  9  and  10,  9  and  7,  10  and  10.  In 
the  fifth  group,  12  and  10,  13  and  10,  13  and  10,  13  and  10,  5  and  3,  13  and  3, 

13  and  3,  12  and  3,  etc.  That  is,  in  group  5  the  number  of  cities  having 
public  works  reporting  percentage  of  taps  per  family  is  12,  and  number  of 
private  works  so  reporting  is  10.  The  number  of  plants  In  the  group  re- 
porting miles  of  mains  is  13  and  private  works  10,  etc. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES. 


193 


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contrast  in  favor  of  the  public  works.  The  advantage  runs  1/.^,  1/.3, 
%,  1/5,  2/3,  200  i^er  cent.,  25  fold,  etc.,  in  favor  of  the  public  plant 
in  the  different  groups.  In  only  3  of  the  55  contrasts  in  the  table 
is  the  averag-e  of  the  private  works  the  best  and  in  one  of  these, 
the  charge  per  mile  of  mains  in  the  sixth  group,  the  contrast  is 
due  simply  to  the  greater  density  of  business  in  the  public  plants 
as  shown  by  dividing  the  number  of  taps  by  the  miles  of  mains, 
a  rebuttal  which  does  not  apply  to  the  other  contrasts  of  columns 
15  and  IG  since  the  density  of  public  business  is  greater  in  those 
13 


194  THE  CITY  FOR  THE  PEOPLE. 

cases  also  wherefore  the  lower  public  charges  per  mile  of  mains 
are  all  the  more  potent  proof  instead  of  being  offset. 

Mr.  Smith  says: 

"In  judging  of  the  eflRciency  of  the  service,  we  have  only  to 
compare  cohimns  (4)  and  (5),  (G)  and  (7),  (8)  and  (9),  and  (10)  and 
(11)  ''  *  *  We  find  that  thruont  the  state  there  is  a  greater 
number  of  taps  per  family  where  the  works  are  public,  than  there 
is  otherwise.  In  regard  to  these  two  columns,  it  is  evident  that 
they  deserve  carefiil  study.  They  contain  one  of  the  most  vital 
facts,  and  illustrate  one  of  the  most  important  truths  connected 
with  the  entire  subject.  It  is  from  this  comparison  that  we  see, 
perchance,  more  definitely  than  from  any  other  source,  to  what 
extent  the  system  is  found  practicable  for  general  use.  It  is  doubt- 
less the  most  concise  manner  available  for  expressing  the  degree 
of  universality  in  the  use,  and  satisfaction  with  the  price  of  water 
furnished  by  private  and  public  works. 

"In  the  places  of  less  than  a  thousand  population  w^e  find  that 
11.14  per  cent,  more  of  the  residents  use  the  water  from  public 
works  than  from  private  plants.  In  cities  owning  their  own  works, 
an  average  of  49.74  per  cent,  of  the  families  are  supplied,  while  only 
38.6  per  cent,  of  the  families  are  supplied  in  places  where  water  is 
the  basis  of  a  private  industry.  In  villages  having  between  1000 
and  3000  population  the  difference  is  10.75  per  cent,  of  the  entire 
population,  the  proportion  supplied  being  public  41.64  per  cent,  and 
private  30.89  per  cent.  In  those  villages  that  have  a  population  of 
from  3000  to  5000,  45.93  per  cent,  in  those  having  public  works  and 
33.63  per  cent,  in  those  cities  depending  upon  private  companies, 
are  supplied  with  water.  This  shows  a  difference  of  12.30  per  cent. 
of  the  whole  i)opulation.  Cities  of  from  5,000  to  10,000  inhabitants 
show  a  much  greater  difference.  There  we  find  56.62  x>er  cent,  of 
the  families  use  the  water  when  it  is  supplied  by  the  city,  and  35.37 
per  cent,  where  the  supply  is  private.  This  leaves  a  margin  of  21.25 
per  cent,  on  the  side  of  municipal  ownership.  In  the  cities  whcse 
population  is  between  10,000  and  25,000  the  proportion  of  consumers 
to  the  entire  number  of  fainilies  is  48.16  per  cent,  public  and  39.74 
per  cent,  private.  In  those  whose  population  is  over  25,000  and  less 
than  50,000  the  percentage  of  consumers  is  50.42  per  cent,  public 
and  30.18  per  cent,  private.  *  *  *  It  is  certain  that  if  we  adopt 
the  proportion  of  taps  to  families  as  our  standard  of  efficiency-  of 
service,  and  moderation  of  rates,  we  shall  be  obliged  to  concede  the 
preference  to  be  with  the  public  works. 

"We  consider  next,  columns  (6)  and  (7).  This  seems  of  vast 
importance  as  it  marks  a  tendency  to  supply  all  suburban  localities 
on  the  one  hand,  and  on  the  other,  simply  to  furnish  the  most 
densely  populated  sections.     *    *    * 

"There  is  a  longer  line  of  distributing  main  for  an  equal  popula- 
tion where  it  is  owned  by  the  city.  The  plants  have  more  suburban 
lines  when  under  public  control.  This  encourages  the  people  to 
abandon  the  overcrowded  centers  in  our  cities  and  to  build  homes 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITl  KS. 


195 


in  the  outlying-  districts.  *  *  *  a  very  significant  fact  may  be 
seen  from  the  possibilties  for  fire  protection.  We  may  notice  that 
in  every  class  the  number  of  hydrants  is  greater  when  the  works 
are  under  public  control.  The  difference  being  from  2.5  per  cent, 
in  gi-oup  3,  to  72.2  per  cent,  in  group  7."  *  *  *  The  consumption 
is  also  everywhere  found  larger  per  family  and  per  capita  when  it 
is  supplied  by  the  city,  the  greatest  difference  appearing  in  group  4, 
where  the  average  in  public  works  is  547.7  gallons,  in  private  309.96 
gallons  per  family,  or  a  difference  of  237.74  gallons  per  family." 

"From  columns  15  to  20  it  appears  that  the  public  service  is  de- 
cidedly cheaper  than  the  private  service  in  every  group,  the  charge 
per  family  is  considerably  lower  in  every  case,  and  also  the  charge 
per  tap,  #hich  in  two  groups  is  less  than  half  for  public  plants 
what  it  is  for  private  works,  and  averaging  all  the  g-roups  but  the 
first  the  private  charge  is  about  100  per  cent,  above  the  public 
charge." 

The  savings  to  the  cities  and  towns  thru  public  ownership  are 
thus  summed  up  by  the  essayist,  after  elaborate  caluculations  in 
which  interest,  taxes,  hydrant  rentals,  etc.,  are  fully  allowed  for. 

Saving  by  Municipal  Ownership  of  Water  Supply. 


Groups  on  Citiks. 

Annual  Balances  Saved  by  I'ublic  Ownership 
(considering  both  family  service  and  public 
consumption,  fire  protection,  Ac.) 

Per  Family 

Per  Tap. 

Total  Amount 

Cities  of  1st  group 

«5.47 

«14.17 

«4,.Sfi7 

Cities  of  2d  group 

4.42 

14.31 

53,976 

Cities  of  .3d  group 

8.10 

14.10 

75.2;'.5 

Cities  of  4th  group 

S.05 

14.26 

110,098 

Cities  of  Ath  group... „ „ 

6.23 

16.68 

286,479 

In  the  6th  group  only  one  citj'  of  each  sort  is  reported,  the 
savings  shown  by  public  ownership  being  $1.68  per  family.  $5.57 
per  tap,  and  $34,2)7  total.  For  the  private  works  in  the  remaining 
classes  the  essayist  had  no  price  data. 


For  a  second  illustration  of  the  results  of  experience  in  public 
ownership  we  will  take  a  statement  concerning  Glasgow  which  1 
drew  up  recently  from  letters  and  reports  direct  from  Glasgow 
together  with  the  writings  of  Dr.  Albert  Shaw  and  Sir  James  Bell, 
and  which  has  been  adopted  for  issue  by  a  referendum  vote  of  the 
National  League  for  Promoting  the  Public  Ownership  of  Mon- 
opolies.    It  is  called: 

THE   WISDOM   OF   GLASGOW. 

Glasgow  is  the  second  city  of  Great  Britain.     Its  population  is 


196  THE  CITY  FOi;  TlIK  TKOPLE. 

750,000,  br  900,000  with  suburban  towns.  In  respect  to  the  munici- 
palization of  industry  it  is  probably  the  leading  city  of  the  world, 
jt  has  extended  the  field  of  municipal  business  far  beyond  the 
limits  usually  prescribed.  It  owns  and  manages  public  slaughter 
houses,  a  consolidated  market  system,  public  swimming  baths,  laun- 
dries, sanitary  wash  houses,  model  tenements,  municipal  lodging 
houses,  a  family  home,  a  municipal  art  gallery,  public  water  works, 
gas  and  electric  works  to  supply  light,  heat  and  power;  the  street 
railway  system,  a  city  farm  where  the  sewage  is  used  and  fodder 
raised  for  municipal  horseflesh  in  the  street  cleaning  departraent 
and  on  the  street  railways,  the  harbor  and  everything  pertaining  to 
it — harbor  tramways,  ferries  and  steamers,  graving  docks,  weigh- 
ing scales,  cranes,  various  yards  and  offices,  and  the  supply  of 
water  for  ships — all  belong  to  the  city  and  contribute  to  its  reve- 
nues. And  it  would  have  had  a  municipal  telephone  system,  if  the 
permission  it  has  more  than  once  requested  had  been  granted.' 

The  results  of  these  extensive  experiments  in  public  ownership 
have  been  the  development  of  an  active  local  patriotism,  the  purifi- 
cation of  politics,  improved  conditions  of  labor,  better  homes,  better 
health,  cheaper  and  better  service,  a  remarkable  increase  of  busi- 
ness, diffusion  of  wealth,  power  and  benefit,  and  a  new  impulse  to- 
ward noble  ideas — the  tendency  being  to  substitute  the  ideal  of 
public  service  for  the  ideal  of  personal  aggrandizement. 

In  the  model  lodging  houses  every  lodger  has  a  separate  apart- 
ment, the  use  of  a  large  sitting  room,  a  locker  for  provisions  and 
the  use  of  a  long  range  for  cooking  his  own  food.  The  charge  is 
7  to  9  cents  a  day,  and  at  the  women's  lodging  6  cents.  These  mu- 
nicipal lodging  houses  have  led  to  a  great  improvement  in  the  pri- 
vate lodging  houses.  Private  parties  have  opened  improved  estab- 
lishments on  the  plan  of  the  public  houses,  with  the  same  prices, 
and  the  same  strict  rules  as  to  order  and  cleanliness.  Many  of  the 
smallest  and  %vorst  of  the  private  houses  have  disappeared  entirely. 

In  the  public  baths  the  charge  for  a  swim,  as  long  as  you  like, 
is  4  cents,  12  tickets  for  36  cents;  boys  and  girls  xmder  13,  2  cents 
and  12  tickets  for  18  cents.  Special  reduced  rates  for  schools, 
classes  and  associations  of  young  people.  Clubs  can  get  the  exclu- 
sive use  of  the  pond  for  one  night  weekly,  between  9  and  10,  for 
$1.60  (which  admits  40  members)  and  a  charge  of  2  cents  for  each 
person  bej-ond  40.  Women's  clubs,  96  cents  for  24  members  and  2 
cents  for  each  additional  person.    Private  hot  baths,  6  to  12  cents.' 

=  In  a  letter  relating  to  the  Glasgow  situation  and  the  Natl.  Pnb.  Own. 
Circular,  Col.  Thos.  Wentworth  Hlgginson  calls  attention  to  the  fact  that 
while  Glasgow  has  done  much  in  the  development  of  municipal  business  sli<> 
has  neglected  to  establish  public  libraries.  Our  cities,  tho  far  behind  in  the 
public  ownership  of  material  utilities,  have  shown  more  wisdom  in  respect 
to  provision  for  the  Intellectual  man. 

'  Condensed  from  p.  177  of  "Glasgow"  by  Sir  James  Bell,  Lord  Provost 
^t  Glasgow  1892-.5,  and  189.5-6.  Boston  has  just  opened  (Oct..  18!»8)  her  first 
permanent  all-the-year-round  public  batli.  The  baths  are  all  private.  The 
only  charge  is  for  soap  and  towels  1  cent,  and  Saturdays  from  10  A.  M.  to 
5  P.  M.  boys  and  girls  are  supplied  with  soap  and  towels  free.  Boston  Is 
ahead  as  to  charges  but  there  Is  no  swimming  pool,  which  is  one  of  the  most 
important  persuasions  to  cleanliness,  changing  its  pursuit  from  a  labor  to  a 
pastime. 


PUBLIC  OWKERSHIP  OF  PUBLIC  UTILITIES.  197 

Hardlj^  less  useful,  as  Dr.  Shaw  says,  in  the  cause  of  cleanliness, 
are  the  public  laundries.  For  4  cents  an  hour  a  woman  can  have 
"the  use  of  a  stall  containing  an  improved  steam  boiling-  arrange- 
ment and  fixed  tubs,  with  hot  and  cold  water  faucets.  The  washing 
being  quickly  done,  the  clothes  are  deposited  for  two  or  three  min- 
utes in  one  of  a  row  of  centrifugal  machine  driers,  after  which  they 
are  hung  on  one  of  a  series  of  sliding  frames,  which  retreat  into 
a  hot  air  apartment.  If  she  wishes,  the  housewife  may  then  use 
a  large  roller-mangle,  operated,  like  all  the  rest  of  the  machinery, 
by  steam  power,  and  she  may,  at  the  end  of  the  hour,  go  home  with 
her  basket  of  clothes  washed,  dried  and  ironed.  To  appreciate  the 
convenience  of  all  this  it  must  be  remembered  that  the  woman 
probably  lives  with  her  family  in  one  small  room  of  an  upper  tene- 
ment flat.  In  each  of  these  establishment  the  city  also  separately 
conducts  a  general  laundry  business,  drawing  its  patronage  from 
all  classes  of  society."  (Dr.  Albert  Shaw,  :Municipal  Government  in 
Great  Britain,  pp.  109,  110.) 

Most  important  of  all  her  undertakings,  perhaps,  are  Glasgow's 
public  tramways.  The  general  manager,  Mr.  John  Young,  has  re- 
cently- revised  and  brought  down  to  date  a  condensed  statement 
of  the  facts  drawn  up  by  me  two  years  ago  for  the  use  of  the  Citi- 
zens' Committee  of  Boston.  He  also  sends  the  report  for  '97-8. 
These  documents,  with  the  writings  of  Dr.  Albert  Shaw  and  Sir 
James  Bell,  and  the  Report  of  the  Massachusetts  Rapid  Transit 
Commision,  supply  the  data  on  which  the  following  summary  is 
based 

In  1894  the  city  of  Glasgow  became  the  owner  and  manager  of 
its  street  car  lines.     The  consequences  were: 

1.  The  hours  of  labor  were  reduced  from  12  and  14  to  10  per  day, 
and  from  84  and  98  to  60  per  week;  wages  were  raised  2  shillings 
per  week,  and  two  uniforms  a  year  were  supplied  to  each  man  free — 
a  voluntary  improvement  of  the  conditions  of  labor  showing  a 
policy  exactly  contrary  to  that  of  the  private  companies. 

2.  Fares  were  reduced  at  once  about  33  per  cent. — the  average 
fare  is  below  2  cents,  and  over  35  per  cent,  of  the  fares  are  1  cent 
each — a  voluntary  movement  in  the  direction  of  cheap  transporta- 
tion, disclosing  once  more  a  policy  precisely  contrary  to  that  of  the 
private  companies.  For  short  distances  the  fare  is  1  cent,  and  night 
and  morning  working  people  can  go  long  routes  for  a  cent.  For 
the  year  ending  May  31,  1898,  the  average  of  all  fares  was  1.7S  cents; 
a  few  years  ago,  before  the  city  took  the  lines,  the  private  tramway 
company  collected  an  average  of  3.84  cents  per  passenger.*  At  the 
private  charges  of  1891  the  106,345,000  passengers  of  '97-98  would 
have  paid  the  company  $4,083,648  instead  of  $1,900,000  they  paid  the 
city  last  year.  The  same  number  of  rides  in  Boston  would  cost 
about  $5,300,000.  We  pay  the  same  5-cent  rate  that  we  did  ten  years 
ago,  while  in  Glasgow  fares  fell  50  per  cent,  in  5  years  (1891  to  1896), 
and  are  now  55  per  cent,  below  the  level  of  1891. 


*  Mass.   Uiipid  Transit  Report,  April,  1892,  p.  13t). 


198 


THE  CITY  FOR  THE  PEOPLE. 


3.  The  service  was  improved.  An  editorial  in  the  Progressive  Re- 
view, London,  November,  1S96,  says: 

"The  tramways  of  Glasgow  has  been  made  the  finest  undertaking 
of  the  kind  in  the  country,  judged  both  by  their  capacity  to  serve 
the  public  and  as  a  purely  commercial  enterprise." 

Glasg-ow  is  one  of  the  first  cities  in  Britain  to  take  steps  toward 
replacing  horse  power  by  mechanical  traction.  She  sent  a  commit- 
tee all  over  the  civilized  world  to  study  the  best  methods,  and  an 
electric  system  is  now  being  introduced  while  even  London  con- 
tents itself  with  horses. 

4.  The  traffic  was  greatly  enlarged  ,doubled  in  about  two  years, 
by  low  fares,  good  service  and  the  increase  of  interest  naturally 
felt  by  the  people  in  a  business  of  their  own. 

5.  Larger  traffic  and  the  economics  of  public  ownership  have  re- 
duced the  operating  cost  per  passenger  to  1.32  cents,  and  the  total 
cost,  including  interest,  taxes  and  depreciation,  is  1.55  cents  per 
passenger.  When  the  private  company  was  collecting  3.84  cents  per 
passenger  it  declared  that  only  .24  of  a  cent  was  profit.  Now  the 
city  collects  1.78  cents  and  still  there  is  about  a  quarter  of  a  cent 
clear  profit,  and  this  is  with  horse  power,  which  makes  the  cost  per 
car  mile  at  least  20  per  cent,  more  than  with  electric  traction." 

6.  The  profits  of  the  business  go  to  the  public  treasury,  not  into 
the  pockets  of  a  few  stockholders.  For  the  year  ending  May  31, 
1898,  in  spite  of  the  extremely  low^  fares,  there  was  a  clear  profit  of 
$189,070  above  operating  cost  and  all  fixed  charges,  interest,  taxes, 
-depreciation  and  payments  to  the  sinking  fund.  In  round  numbers 
the  profits  above  operating  expenses  and  ordinary  fixed  charges 
■were  $240,000  and  the  profits  above  operating  expenses  alone  were 
$500,000. 

We  are  told  that  conditions  are  different  in  America,  and  infer- 
ences must  not  be  drawn  from  Glasgow.  Let  us  see.  It  is  true,  of 
course,  that  it  would  not  do  to  say  that  as  Glasgow  has  a  1%  cent 
fare,  therefore  our  roads  can  be  operated  on  a  1%  cent  rate.  Street 
railway  wages  are  higher  here  than  in  any  city  of  Europe,  so  far 
as  I  know,  and  our  cities  are  not  so  compact  as  Glasgow.  But  is  it 
not  fair  to  conclude  that  public  ownership  would  have  an  effect  in 
our  cities  similar  in  kind  to  the  effect  it  has  had  in  Glasgow?  If 
the  change  to  public  ownership  in  Glasgow  brought  lower  fares 
ajQd  better  service  than  existed  under  private  ownership  in  Glasgoic, 
is  it  not  fair  to  believe  that  the  change  to  public  ownership  here 
would  give  us  lower  fares  and  better  service  than  we  now  have? 

Public  railways  in  Glasgow  have  proved  far  better  for  employees 
and  the  people  than  private  railways.  We  infer  that  similar  results 
will  follow  in  America.    Details  may  be  different,  but  the  essential 

*  The  average  fare  In  Great  Britain  In  1897  was  2.66  cents  and  the  average 
operating  cost  1.97  cents  per  passenger,  facts  which  are  partly  due  to  the 
public  ownership  of  40  per  cent,  of  the  mileage,  partly  to  density  of  traffic 
produced  by  compact  population  and  low  fares.  (Glasgow  has  12  passengers 
per  car  mile,  abt  the  same  as  Broadway,  New  York,  while  Boston  has  abt  7) 
and  partly  to  lower  wages  which  in  Glasgow  make  a  diiliTence  ol  about  half 
a  cent  per  oassengei. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  199 

conditions  are  the  same,  as  shown  first,  by  experience  with  indus- 
tries already  public  here,  and  second,  by  a  study  of  the  cause  of 
improvement  under  public  ownership  in  Glasgow. 

1.  In  public  business  here,  as  elsewhere,  the  workers  are  freer, 
get  more  pay  and  work  fewer  hours  than  the  employees  of  the 
great  private  monopolies.  The  public  service  is  good,  the  charges 
are  very  low  and  the  profit,  if  any,  belongs  to  the  people. 

2.  The  change  from  private  to  public  ownership  of  a  great  mo- 
nopoly means  a  change  of  purpose  from  dividends  for  a  few  to  service 
for  all.  This  change  of  purpose  is  the  source  of  the  improvement 
under  public  ownership  in  respect  to  cheaper  transportation,  a 
better  paid  and  more  contented  citizenship,  a  fairer  diffusion  of 
wealth  and  power,  etc.  This  change  of  purpose  will  accompany 
the  change  to  public  ownership  here  as  well  as  in  Europe  or  Aus- 
tralia, and,  therefore,  public  ownership  of  the  railways  here  will 
cause  a  movement  in  the  same  general  direction  as  in  Glasgow: 

Fares  will  be  lower  than  they  are  now. 

Wages  higher.     Hours  shorter. 

Service  better.     Traffic  larger. 

And  all  the  profits  and  benefits  of  the  railway  system  will  go  to 
the  public  instead  of  a  few  individuals.  Private  enterprise  seeks 
to  get  as  much  and  give  as  little  as  possible,  while  public  enterprise 
aims  to  give  as  much  and  take  as  little  as  possible.  A  business 
owned  by  a  few  is  apt  to  be  run  in  the  interest  of  the  few,  while 
a  business  owned  by  all,  is  apt  to  be  run  in  the  interest  of  all — or, 
to  put  it  in  one  comparative  phrase,  o  business  otcned  hy  the  people 
is  MORE  apt  to  he  run  in  the  interest  of  the  people  than  a  business 
owned  by  a  Morgan  Syndicate. 

THE    ENGLISH   TELEGRAPH. 

As  a  final  example  under  this  head  let  us  take  the  experience  of 
England  with  her  telegraph  lines.'  Up  to  1870  the  telegraph  busi- 
ness in  Great  Britain  was  in  the  hands  of  private  companies,  and  for 
many  year.s  complaints  had  been  made  of  excessive  charges,  poor 
service  and  inadequate  facilities.  The  companies  pretended  to 
compete,  but  in  reality  had  an  understanding  among  themselves 
which  prevented  the  reduction  of  rates  to  a  just  figure.  The  press 
of  Great  Britain  complained  of  the  extortions,  delays,  errors,  wastes 
and  inadequacies  of  the  telegraph  service,  and  the  Chambers  of 
Commerce  of  thirty  prominent  cities  memorialized  the  House  of 
Commons,  stating  that  the  petitioners  "had  reason  to  complain  of 
the  high  rates  charged  by  existing  companies  for  the  transmission 
of  messages,  of  frequent  and  vexatious  delays  in  their  delivery,  of 
their  inaccurate  rendering  and  of  the  fact  that  many  important 
towns,  and  even  whole  districts,  are  unsupplied  with  the  means  of 
telegraphic  communication." 

An  able  commissioner  appointed  by  the  Postmaster  General  made 
a  scientific  study  of  the  abuses  of  the  existing  service,  and  the  con- 


«  See  fuller  statement  in  my  article  on  The  Telegraph  Monopoly,  Arena, 
Vol.  17.  p.  9. 


200  THE  CITY  FOR  THE  PEOPLE. 

dition  of  the  service  in  Belgium,  Switzerland  and  other  countries 
where  the  telegrapli  was  public  jjroperty,  and  reported  a  plan  for 
public  ownership. 

The  telegraph  companies  used  every  effort  to  prevent  and  impede 
the  reform.  The  objections  they  raised  were: 

1.  It  was  not  the  government's  business  to  telegraph. 

2.  There  would  be  a  loss  if  it  did. 

3.  The  telegraph  would  be  better  conducted  under  private  enter- 

prise. 

4.  The  government  rates  would  be  higher. 

5.  And  the  use  of  the  telegraph  would  decrease. 

6.  The  government  service  would  be  non-progressive — no  stimulus 

to  invention,  etc. 

7.  The  secrecy  of  messages  would  be  violated. 

8.  The  telegraph  would  be  used  as  a  party  machine. 

9.  The  government  could  not  be  sued. 

10.  To  establish  a  public  telegraph  would  be  an  arbitrary  and  un- 
just interference  with  private  interests. 
In  spite  of  these  terrible  prophecies  ^England  bought  the  tele- 
graphs and  made  them  a  part  of  the  postal  system  in  1870,  and 
none  of  the  predictions  came  true,  not  even  the  last,  for  the  com- 
panies received  more  than  the  fair  value  for  their  property.  The 
immediate  results  of  public  ownership  were: 

1.  A  reduction  in  rates  of  1/3  to  1/2 . 

2.  A  vast  increase  of  business — the    work    done    by    the    telegraph 

doubling  in  the  first  year  after  the  transfer. 

3.  A  great  extension  of  lines  into  the  less  populous  districts,  so  as  to 

give  the  whole  people  the  benefit  of  telegraphic  communi- 
cation. 

4.  Large  additional  facilities  by  opening  more  offices,  locating  offices 

more  conveniently  and  naaking  every  post-office  and  post-box 
a  place  where  a  telegram  may  be  deposited  to  be  taken  to 
the  nearest  telegraph  office  for  transmission. 

5.  A  considerable  economy  by  uniting  the  telegraph  service  with  the 

mail  service  under  a  single  control,  avoiding  useless  duplica- 
tions, using  the  same  offices,  the  same  collecting  and  delivery 
agencies,  and  often  the  same  operatives  for  both  services. 

6.  A  marked  improvement  in  the  service,  throwing  complaint  out  of 

the  steady  occupation  she  had  had  so  long — the  aim  of  the 
post-office  being  service,  not  dividends. 

7.  A  decided  gain  to  employes  in  pay,  hours,  tenure  of  office,  etc. 

8.  Unprecedented  advantages  to  the  press  for  cheap  and  rapid  trans- 

mission of  news,  at  the  same  time  freeing  it  from  the  pres- 
sure of  a  power  that  claimed  the  right  to  dictate  the  views 
and  opinions  it  should  express. 

9.  The  development  of  business  and  strengthening  of  social  ties,  ties  of 

kinship  and  friendship,  through  the.  growth  of  business  and 
social  correspondence. 
10.  The  removal  of  a  great  antagonism  and  the  cessation  of  the  vexa- 
tious and  costlj'  conflict  it  had  caused  between  the  companies 
and  the  people. 


PUBLIC  OW^'EilSHIP  OF  PUBLIC  UTILITIES.  201 

Looking  at  the   subsequent  history  of  the  English   postal   tele- 
graph we  find: 

1.  A  further  reduction  of  nearly  one-half  in  the  average  cost  of  a 

message. 

2.  More  than  a  tenfold  increase  of  business  in  twenty-five  years 

while  population  increased  but  one-fourth— over  1000  per  cent, 
telegraph  growth  to  25  per  cent,  population  increase. 

3.  A  sixfold  extension  of  lines  and  fiftyfold  increase  of  facilities. 

4.  A  steady  policy  of  expanding  and  improving  the  service,  adopt- 

ing new  inventions,  putting  underground  hundreds  of  miles 
of  wire  that  formerly  ran  over  houses  and  streets,  etc. 

5.  A  systematic  eifort  to  elevate  labor,  resulting  in  a  progressive 

amelioration  of  the  condition  of  employes  in  respect  to  wages, 
hours,  tenure,  promotion,  privileges  and  perquisites. 

6.  A   good   profit   to .  the  government    (excluding  interest  on   the 

water-logged  capital  cost)  in  spite  of  low  rates,  large  exten- 
sions into  thinly  populated  areas,  advancing  wages,  heavy 
losses  through  carrying  press  despatches  below  cost,  compe- 
tition of  telephone  companies  in  the  best-paying  part  of  the 
traffic,  etc. 

7.  Satisfaction  with  the  telegraph  service  even  on  the  part  of  con- 

servatives who  objected  to  the  change  before  it  was  made. 
Comparing  the  English  situation  with  our  own  we  find: 

IN    ENGLAND.  IN  THE  UNITED  STATES. 

Low  rates.  High  rates  (twice  as  high). 

Good  service.  Poor  service. 

Extension    of   telegraph   facilities   to  Facilities  only  for  the  classes, 
the  masses. 

Rapid  growth,  40  times  as  rapid  as  Slow  growth,   less  than  one-sixth  of 
the    growth    of    population,    and    4  the  growth  of  the  English  system, 

times  as  fast  as  the  growth  of  the 
letter  mail. 

Progressive  improvement  of  labor.  Progressive  maltreatment  of  labor. 

Harmonious  uninterrupted  operation.  Big  strikes. 

Large  popular  use  of  the  telegraph.  The  telegraph   an  adjunct  of   specu- 
lation. 

A  management  aiming  solely  at  serv-  A  management  aiming  solely  at  serv- 
ing the  people.  ing  themselves. 

Moderate   salaries    for     leading    offl-  Exorbitant   salaries   for   leading  offi- 
cials, cials. 

No     big    fortunes      from      telegraph  The  telegraph  a  millionaire  machine, 
manipulation. 

Universal  satisfaction   with  the  tele-  Universal  discontent   with   the  tel  - 
graph  situation.  graph  situation. 

Public  monopoly.  Private  monopoly. 

The  fact  that  Great  Britain  began  with  the  private  telegraph 
and  gave  it  twentj-five  years  and  more  to  show  what  it  could  do, 
that  she  found  it  unendiirable,  and  changed  at  large  cost  to  the 
public  system,  which  proved  a  great  success,  and  after  a  trial  of 
more  than  twenty-five  years  is  acknowledged  by  all  to  be  incom- 
parably superior  to  the  old  plan — and  the  further  fact  that  the  said 
countrj-  is  very  like  our  own  in  government,  language,  customs, 
sentiment,  etc.,  give  the  history  of  the  English  telegraph  a  peculiar 
value  to  us. 

The  parallel  between  the  English  telegraph  before  1870  and  our 
own  system  to-day  is  very  striking — we  have  in  an  aggravated  form 
all  the  evils  the  English  reformers  complained  of  and  several  addi- 


202  THE  CITY  FOR  THE  PEOPLE. 

tional  ones  of  our  own — boundless  dilution  of  stock,  enormous 
profits,  telegraphic  millionaires,  monopoly  of  market  reports,  sys- 
tematic ill  treatment  of  employes,  etc.  England  had  abundant 
reason  for  revolt;   America  has  still  gi-eater  reason. 

What  could  constitute  a  stronger  proof  of  the  benefits  of  the 
public  ownership  of  monopolies  than  this  experience  of  a  quarter 
of  a  century  of  private  ownership,  full  of  abuses  and  complaints, 
followed  by  a  quarter  of  a  century  of  public  ownership  of  the  same 
monopoly  in  the  same  coimtrj^  resulting  in  remedying-  the  abuses, 
stopping  the  complaints  and  convincing-  the  stoutest  opponents  of 
public  ownership  that  they  had  been  mistaken,  and  that  it  was  the 
best  plan  after  all,  having  abundantly  proved  its  case  by  actual 
trial. 

Satisfaction. 

Several  investigations  into  the  degree  of  satisfaction  with 
public  electric  plants  show  over  90  pea*  cent,  of  strongly  favor- 
able replies  from  the  officials,^  and  so  far  as  the  mass  of  the 
people  is  concerned  the  cities  having  public  plants  are  prac- 
tically unanimous  in  favor  of  public  ownership.  Professor 
Bemis  finds  that  in  every  city  having  municipal  gas  works 
public  ownership  has  given  general  satisfaction.  "'The  people 
believe  they  have  gained  thru  public  ownership  and  operation 
and  wish  to  continue  it."^ 

Glasgow  is  enthusiastic  over  her  municipal  street  railways 
and  other  public  enterprises.  Our  public  water  works  and  fire 
departments  are  much  more  satisfactory  to  the  people  as  a 
rule  than  the  private  variety.  Norway  and  Sweden,  Luxem- 
burg, Belgium,  and  Switzerland  are  abundantly  satisfied  of 
the  msdom  of  their  public  telephone  systems,  while  our  people 
are  anything  but  contented  with  the  telephone  monopoly 
which  controls  most  of  our  cities  and  charges  2  or  3  prices 
for  its  services.  As  to  the  telegraph,  every  country,  kingdom, 
or  republic  that  began  with  public  ownership  has  had  un- 


>  Arena,  Dec,  1895,  p.  101.  Municipal  Monopolies  221-2  (1898).  The  main 
objection  made  by  superintendents  answering  unfavorably  Is  that  the  charge 
to  private  consumers  is  put  too  low.  The  places  from  which  objec-tioii  comes 
are  nearly  all  very  small  towns. 

=  Municipal  Monopolies,  619  (1898);  Municipal  Ownership  of  Gas  (1891), 
p.  14.  The  I'rotessdr  questioned  all  tlic  citizens  he  could  meet  in  the  tirics 
visited  and  on  the  trains  going  to  and  from  them  and  found  that  "general 
satisfaction  prevails  over  the  results  of  city  ownership.  No  one  expressed 
any  desire  to  return  to  private  ownership,"  or  auy  faith  in  the  objections 
that  city  ownership  is  dangerous  paternalism,  or  interference  with  private 
rights,  or  that  it  leads  to  corruption  of  politics  thru  an  enlargement  of  the 
number  of  otfices." 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  203 

broken  telegraphic  peace  and  satisfaction,  while  the  countries 
that  have  made  trial  of  the  private  system  have  found  it  so 
imperfect  that  they  have  abandoned  it  for  public  ownership  or 
made  a  strong  effort  to  do  so,  backed  by  a  public  sentiment 
that  nothing  but  the  money  and  influence  of  a  gigantic  cor- 
poration could  have  resisted.  Even  the  most  strenuous  oppo- 
nents of  public  railways  in  Germany  now  admit  that  they 
were  ^vrong  and  that  experience  has  shown  the  public  system 
to  be  superior  to  the  private.  No  one  here  Avould  think  of 
turning  over  the  post  office  to  a  private  corporation.*  Every- 
where the  satisfaction  of  the  people  with  the  socialization  of 
monoix>ly  is  being  shown  in  the  most  substantial  manner  pos- 
sible by  the 

Gkowth  of  Public  Ownership,  f 

In  1800  there  were  16  water  works  in  the  United  States, 
all  built  and  o^vned  by  private  parties  except  one  in  Win- 
chester, Virginia;  14  of  the  15  private  plants  have  since 
become  public,  and  from  1800  to  1896  the  public  works  went 
up  from  1  in  16  to  1690  in  3179,  or  from  Q.3^  to  53.2^  of  the 
total.^  Of  the  50  largest  cities  in  the  IJnited  States,  21  origi- 
nally built  and  now  own  their  water  works,  20  have  changed 
from  private  to  public  ownership,  and  only  9  are  now  depen- 
dent on  private  companies  for  their  supply.^     According  to 


*  Imagine  the  watered  stock,  the  doubled  and  trebled,  squared,  cubed  and 
integrated  rates,  the  discriminations  between  individuals  and  places,  the 
postal  lobbies,  the  indifferent  service  except  for  high-j)a.v-commercial  mall, 
etc.,  etc. 

'  By  1810  there  were  5  public  plants  in  a  total  of  26.  From  1810  to  1825 
(the  second  war  period  of  the  country  and  the  years  immediately  preceding 
and  following  It),  no  public  plants  were  added,  and  the  ratio  stood  5  to  32. 
From  1825  to  1855  the  percentage  of  public  works  rose  from  15.6  to  45.3;  but 
the  agitation  preceding  the  civil  war  and  the  war  itself  set  back  the  develop- 
ment of  public  works  to  42  per  cent,  in  1865.  In  1863,  the  central  year  of 
the  struggle,  not  a  single  water-works  plant  was  built.  From  1865  to  ltM5 
the  percentage  of  public  works  rose  rapidly.  From  1875  to  1890  franchise 
getting  became  a  business  and  private  ownership  gained  several  points. 
Since  1890  the  development  of  public  works  has  been  more  rapid  than  ever 
before,  the  number  rising  from  806  in  1890  to  1690  in  1896.  while  private 
plants  Increased  from  1072  to  1489  only.  (Mr.  Baker  in  Municipal  Monopolies 
Chap.  I.)  Tlie  effect  of  war  in  stopping  municipal  development,  and  the 
recent  enormous  increase  of  public  works,  are  facts  of  exceeding  interest. 

2  The  9  cities  are  San  Francisco,  New  Orleans,  Omaha,  Denver,  Indian- 
apolis, New  Haven,  Paterson,  Scranton,  and  Memphis.  All  the  other  chief 
cities  have  public  works.  In  New  Orleans  the  works  were  first  built  by  a 
private  company  (1833),  then  sold  to  the  city  (1868),  then  sold  back  to  a 
company  (1878),  and  now  the  taxpayers  have  voted  6,272  to  394  for  public 
waterworks.  Indianapolis  has  had  an  engineer  examine  the  situation  with 
a  view  to  municipal  purchase  of  the  works.  Many  other  cities  and  towns 
both  In  the  United  States  and  Canada  are  proposing  to  establish  municipal 
works  either  by  purchase  or  construction. 

t  See  further   Appendix   II   F. 


204  THE  CITY  FOE  THE  PEOPLE. 

the  Water  Manual  of  1897  there  have  been  205  changes  from 
private  to  public  ownership  in  water  supply,  and  only  2<"* 
changes  from  public  to  private.  About  -J  of  all  the  private 
works  built  have  become  public,  while  only  1/75  of  the  public 
works  have  changed.  In  Massachusetts  29  plants  out  of  67 
have  changed  from  private  to  public  ownership.  In  other 
words  43^  of  the  works  built  by  private  companies  have  be- 
come jDublic,  and  no  plants  have  changed  the  other  way.  In 
Xew  York  there  have  been  26  changes  from  private  to  public 
and  1  the  other  way.  In  Pennsylvania  14  changes  from  pri- 
vate to  public  and  1  the  other  way.  In  Canada  19  out  of  54 
private  works  built  have  been  changed  to  public,  and  the 
changes^  the  other  have  been  none.  In  Massachusetts  75;^  of 
the  water  works  are  now  public,  in  Illinois  78^,  Michigan  81^', 
Iowa  82^  Xew  York  50^,  Pennsylvania  24^,  California  16^, 
Minnesota  87^,  Nebraska  88^,  Canada  75^.  From  100  per 
cent,  private  to  75,  78,  and  81  per  cent,  public  in  less  than  a 
century  is  a  very  decided  change.^  And  the  movement  is  ac- 
celerating; from  1890  to  1896  the  growth  of  public  owner- 
ship has  been  far  more  rapid  than  at  any  previous  period, 
the  public  works  more  than  doubling  in  the  six  yeai*s  (110^ 
increase  to  be  more  exact),  while  the  private  works  increased 
only  a  little  over  one-third  (39^).  The  net  gain  in  the  number 
of  public  works  was  884,  while  the  net  gain  of  private  works 
was  only  417. 

In  England  and  Wales  45  out  of  64  great  towns  and  bor- 
oughs own  their  water  works,  with  all  the  large  towns  in  Scot- 
land, and  Dublin,  Belfast  and  Cork  in  Ireland.  In  1898  the 
London  County  Council  has  voted  to  get  Parliamentary  per- 
mission to  own  and  operate  its  water  works.     (See  Ap.  II  F.) 


*  In  1800  Massachusetts  had  water  plants  In  Boston,  Plymouth,  Salem, 
Worcester,  and  Peabody,  all  private.  The  first  system  in  the  state  was  built 
m  Boston  by  a  privato  company  in  1652,  and  the  first  public  works  in  the 
state  were  those  built  by  the  city  of  Boston  in  1848.  Worcester  bought  out 
the  private  works  in  1&52.  The  first  plants  in  Illinois  were  those  of  Chicago. 
1840,  and  Ottawa  18(!0,  both  private,  and  the  first  public  works  were  built 
by  Chicago  in  1854.  Michigan  began  with  the  private  plant  in  Detroit, 
1827,  bought  by  the  city  in  183G.  The  common  council  of  New  York  ordered 
a  well  sunk  and  reservoir  built  in  1774.  The  work  was  stopped  by  the 
Revolution.  In  1799  the  Manhattan  Co.  built  works.  In  1830  the  city  built 
water  works  for  fire  department,  and  in  1842  the  Croton  Avorks  were  put  in 
operation  by  the  city.  The  first  complete  works  in  the  state  were  at  Geneva, 
1787  (private),  bought  by  city  1896.  Albany  had  private  works  in  1799, 
changed  to  public  in  1813,  back  to  private  in  1831  and  finally  to  public  owner- 
ship in  1851.  The  first  works  in  Pennsvlvanla  were  at  Bethlehem,  1761. 
private,  bought  by  city  in  1871.  The  Philndelphia  works  were  begun  by  the 
city  in  1800,  the  first  water  being  supplied  January  2,  1801. 


PUBLIC  (>^V^•ERSH1P  OF  PUBLIC  UTILITIES.  *205 

Private  gas  works  were  in  successful  operation  at  'Baltimore  in 
1821.  at  Boston  in  1822,  at  New  York  in  1827,  and  at  Philadelphia 
in  1835.  In  1841  the  Philadelphia  Councils  attempted  to  take  pos- 
session of  the  works  but  it  was  found  that  they  had  merely  suc~ 
ceeded  in  creating-  a  trust  which  under  the  rulings  of  the  courts 
made  the  managing  board  trustees  for  the  bondholders  and  the 
absolute  masters  of  the  situation  till  all  the  bonds  had  matured 
and  were  paid.  So  that  the  first  real  public  gas  works  were  estab- 
lished in  Richmond  in  1852.  Since  then  11  other  municipalities  in 
this  country  have  secured  public  works  by  purchase  or  construc- 
tion. In  Great  Britain— Birmingham,  Glasgow,  Manchester,  Lei- 
cester, Nottingham,  etc.,  own  their  gas  works — one-third  of  all  the 
g^s  works  are  public  and  more  than  one-third  of  the  gas  supplied 
is  from  the  public  Avorks.  From  1882  to  1897  the  number  of  public 
works  grew  from  148  to  208,  or  from  29.6  to  32.45  per  cent,  of  the 
total,  and  the  proportion  of  gas  sold  by  municipalities  rose  from 
31.7  to  36.9  per  cent.  Outside  of  Loudon  one-half  the  gas  used  and 
one-half  the  consumers  are  supplied  hy  ptihlic  works.  In  1898  the 
number  of  public  works  rose  to  212  or  32.7  per  cent,  of  the  total 
of  648  works,  and  48.8  per  cent,  of  all  consumers  in  the  United 
Kingdom  were  served  by  public  plants.  Taking  two  nations  ot 
Europe,  Bronson  Keeler  found,  as  long  ago  as  1889,  that  500  muni- 
cipalities owned  their  gas  works;  168  piiblic  works  in  the  United 
Kingdom  and  338  in  Germanj'  out  of  a  total  of  667  plants  (in  Saxony 
every  plant  public),  over  500  cities  altogether. 

The  growth  of  public  electric  lighting  is  shown  by  the  following 

approximate  figures: 

Number  of  Public  Electric  Plants. 

1882 1 

1884     3 

1886     11 

1888    32 

1890    61 

1892    192 

1895    220' 

1898    nearly  400 

From  no  per  cent,  in  1880  to  15  per  cent,  in  1898;  from  1  in  1882 
to  about  200  in  1892  and  nearly  400  in  1898  is  good  progress.*  In 
Great  Britain  municipal  electric  plants  in  1895  sold  31.9  per  cent, 
and  in  1897  they  sold  45.2  per  cent  of  the  total  consumption  ot 
electric  energy.     (See  Appendix  F.) 


*  There  have  been  2  sales  of  public  lighting  plants  because  of  dissatis- 
faction, and  in  both  cases  the  works  were  a  failure  under  private,  as  well 
as  under  public  management;  3  sales  distinctly  stated  not  to  have  been 
caused  bv  dissatisfaction  but  to  be  due  to  very  different  causes,  two  of 
them  to  corporate  influence  in  councils,  and  one  to  the  inability  of  the  city 
to  raise  the  monev  for  needed  reconstruction  and  extensions.  There  is  also 
one  case  where  a  fire  destroyed  a  very  satisfactory  public  plant,  but  the  city 
was  too  heavilv  involved  to  rebuild.  In  five  other  cases  of  alleged  failure 
the  facts  have  "not  been  ascertained.  That  is  the  extent  of  the  offsets  from 
the  forward  movement  of  electric  public  ownership.  (See  Objections 
below. >  . 


200  THE  CITY  FOK  THE  PEOPLE. 

In  Great  Britain  as  we  have  seen  one-fourth  of  the  street  railway- 
systems  with  40  per  cent,  of  the  mileage  belong  to  municipalities, 
and  16  systems  with  318  miles  of  tracks  are  operated  as  well  as 
owned  by  the  cities.  Huddersfield  was  allowed  to  operate  its  roads 
from  the  start  (1882)  because  no  private  companj^  could  be  got  to 
undertake  the  work.  BetM'een  1893  and  1895  Plymouth,  Blackpool, 
Leeds,  and  Glasgow  began  to  operate  tramways,  the  first  two  lor 
the  same  reason  as  in  Huddersfi^eld.  All  these  places  have  made 
a  success  of  public  ownership  notwithstanding  the  adverse  condi- 
tions in  the  first  three.  In  1896  Parliament  gave  Sheffield  the  right 
to  operate  tramways,  and  withdrew  its  prohibition  ui>on  such  peti- 
tions and  immediately  a  score  of  cities  began  to  make  plans  for 
public  ownership,  London  and  Liverpool  among  the  number,  and 
11  cities  entered  upon  the  public  operation  of  their  tramways  from 
1896  to  1898.  No  wonder  Professor  Bemis  speaks  of  "the  rapidly 
rising  tide  of  municipal  operation  in  Great  Britain."  Here  is  the 
list  of  cities  owning  and  operating  their  tramways  in  Great 
Britain,  with  their  population.     (See  further  Appendix  II  F.) 

1882.  1896-98. 

Huddersfield    100,460       Sheffield    347,280 

Aberdeen    136,000 

Blackburn    129,460 

1893-95.                                   Bradford    228,900 

Plymouth    98,120       Dover    33,000 

Blackpool    35,000       Halifax    94,775 

Leeds   402,450       Hull    225,0r»0 

Glasgow    750,000       Liverpool  644,130 

Nottingham    229.775 

South  Hampton   100.000 

•London    4,500,000 

♦Partial  operation,  24  miles  of  track,  Jan.,  "99. 

America  has  had  but  three  examples  of  public  ownership  and 
operation  of  street  railways,  the  Brooklyn  Bridge  Railway,  the 
interlude  in  Toronto,  and  the  municipal  system  of  Port  Arthur, 
Ontario.^  There  have  been  strong  movements  for  public  purchase 
and  operation  of  street  railways  in  Boston,  Philadelphia,  Chicago, 
St.  Louis  and  other  cities.  In  Detroit  a  commission  was  appointed 
with  Governor  Pingree  at  its  head  to  secure  city  ownership  of  all 
the  street  railways.  A  substantial  agreement  with  the  companies 
was  reached  and  the  city  was  about  to  take  a  referendum  on  the 
matter  (which  would  doubtless  have  sanctioned  the  purchase) 
when  the  movement  was  checked  by  the  peculiar  decision  of  the 
State  Supreme  Court  already  discussed.     (See  Method  above.) 

This  all-important  fact,  that  the  stern  logic  of  experience  is 
pushing  the  people  into  public  ownership,  is  further  illustrated  by 
the  history  of  the  telephone.  Belgium  began  with  private  tele- 
phones in  1884,  but  found  it  best  to  transfer  them  to  public  opera- 
tion in  1893.  Great  Britain  has  ciphered  out  the  same  sum  in  social 
economics;  the  trunk  lines  became  postal  property  in  1895,  and  it 
is  generally  believed  that  the  government  will  acquire  the  entire 


»  Municipal   Monopolii-s.   p.   5G8.    The  town   ruii.s  an  electric  light   system 
in  connection  with  the  railway. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  207 

business  of  the  exchanges  when  the  National  Telephone  Company's 
license  expires.  Norway  also  decided  in  1893  to  take  jwssession  of 
all  the  trunk  lines.  Trondhjem  has  bought  up  its  exchange. 
Stockholm  has  a  public  exchange.  Other  cities  like  Rotterdam, 
Amsterdam,  etc.,  were  reported  in  1896  to  be  constructing  ex- 
changes, and  many  more  Avere  said  to  be  discussing  the  subject. 
Glasgow  has  repeatedly  asked  permission  to  establish  a  municipal 
telephone  plant.  Austria  has  moved  along  the  same  path  and  since 
Jan.,  1895,  private  telephone  companies  have  ceased  to  exist  in 
Vienna.  France  took  possession  of  the  telephone  lines  in  1889. 
Switzerland  also  began  with  private  telephones  but  has  made  the 
whole  system  public  property.  Sweden  has  gone  far  on  the  same 
road;  the  state  owns  most  of  the  interurban  lines  and  is  fast  ab- 
sorbing the  exchanges.  In  Italy  and  Spain  concessions  of  25  and 
30  years  have  been  granted  to  private  companies  on  condition  that 
at  the  end  of  the  franchise  term  the  telephone  sj^stem  shall  become 
public  property  without  any  payment  to  the  companies.  Germany, 
Luxemburg,  Wurtemburg,  Bulgaria,  Bavaria,  and  some  of  the 
Australian  Eepublics  began  with  public  telephones  and  have  re- 
tained thuia. 

Thus  in  seven  countries  that  began  with  private  telephones  we 
see  a  transformation  to  public  ownership,  and  provision  for  it  in 
two  others,®  while  not  one  of  the  countries  that  began  with  public 
telephones  or  have  had  them  now  for  a  number  of  years,  show  any 
disposition  to  transfer  them,  to  private  corporations.  The  move- 
ment is  all  one  way  in  the  telephone  world. 

It  is  substantially  the  same  with  the  telegraph.  With  the  ex« 
ception  of  the  sale  of  the  experimental  line  from  Washington  to 
Baltimore,  no  countrj-  has  changed  from  public  to  private  owner- 
ship, but  every  country  in  the  world  that  began  with  private  tele- 
graphs has  changed  to  public  ownership  except,  Bolivia,  Canada, 
Cuba,  Cypress,  Hawaii,  Honduras,  and  the  United  States,  and  even 
in  Canada  the  government  owns  some  of  the  commercial  lines,  so 
that  the  only  countries  without  government  ownership  of  com- 
mercial telegraphs  are 

Bolivia,  Cuba, 

Cypress,  Hawaii,  Honduras, 

and  the 

UNITED  STATES."^ 

The  company  is  not  the  best  in  the  world,  but  Uncle  Sam  seems 
to  have  a  tendency  to  afiliate  with  Cuba  and  Hawaii  in  more 
ways  than  one.     France,  Germany,  Eussia,  Sweden,  Norway,  Den- 


«In  Austria,  Belgium,  France,  and  Switzerland  the  transformation  is 
roiiiplete,  tlie  telephone  systems  in  those  cmintries  being  now  entiiely  puDiic 
pniportj'. 

-  See  the  Telegraph  Monopoly  Arena,  vol  U,,  p.  251.  and  authorities  there 
cited. 


208  THE  CITY  FOK  THE  PEOPLE. 

mark,  Switzerland  and  some  other  nations  built  their  own  lines 
at  the  start.  In  Belgium  and  in  the  Netherlands  some  of  the  early 
lines  were  built  by  the  government  and  some  by  private  enterprise. 
The  government  lines  proved  the  most  satisfactory  and  the  public 
system  was  rapidly  extended  both  by  direct  construction  and  by 
the  purchase  of  private  lines.  In  England  the  telegraph  was  orig- 
inally private  but  became  public  in  1870.  Even  in  the  United  States 
the  government  puts  up  military  telegraph  lines,  and  it  is  a  com- 
mon thing  for  cities  to  own  police  and  fire  alarm  systems. 

In  the  history  of  railways  the  power  of  the  movement  toward 
public  ownership  of  monopolies  is  equally  apparent.  Prussia  at 
first  adopted  the  private  system  almost  wholly,  the  State  content- 
ing itself  with  building  lines  in  out-of-the  way  districts  w-here  pri- 
vate enterprise  would  not  condescend  to  go — in  Southern  Germany, 
on  the  other  hand,  the  nations  considered  the  making  of  the  rail- 
ways an  exclusive  function  of  the  State — for  years  the  two  systems 
worked  side  by  side,  with  the  result,  not  of  showing  South  Ger- 
many the  need  of  a  change  to  corporation  railways,  but  of  showing 
North  Germany  the  need  of  a  change  to  the  public  system,  so  that 
the  Prussian  Government  bought  up  the  private  railways,  and  now 
owns  nearly  all  (about  nine-tenths)  of  the  mileage  in  the  State; 
Saxony  learned  the  same  lesson  and  bought  all  the  railways  be- 
longing to  private  companies;  Belgium  tried  both  systems,  with 
the  result  that  in  1870  the  Government  decided  to  buy  out  most 
of  the  private  lines;  on  a  referendum  after  thoro  discussion 
Switzerland  has  voted  to  buy  the  railroads;  in  Austria-Hungary, 
Holland,  Norway,  and  other  countries  the  movement  is  from  pri- 
vate railways  to  a  State  system,  gradually  enlarging  its  scope  and 
absorbing  the  private  lines;  in  France  the  reversion  of  the  private 
railways  is  in  the  State,  and  they  will  become  public  property  when 
their  terms,  expire;  in  Australia  the  same  double  experiment  with 
public  and  private  roads  has  been  made  with  the  same  results- 
continuance  of  public  ownership  wherever  adopted,  and  change 
from  private  to  public,  until  now  nearly  the  whole  system  belongs 
to  the  Government,  some  colonies  having  no  private  roads  at  all; 
such  illustrations  could  be  continued  almost  indefinitely,  but 
enough  has  been  said  to  reveal  the  law  of  the  movement. 

The  Movement  of  History. 

The  recent  remarkable  growth  of  public  ownership  dis- 
cussed in  the  preceding  section  is  but  a  part  of  one  of  the 
greatest,  most  fundamental  and  far  reaching  movements  of 
history.  From  the  dawn  of  civilization  to  the  present  day, 
with  a  wave-like  motion  at  times,  but  with  ever  increasing 
volume,  the  movement  toward  public  co-operation  has  grown 
and  swelled  and  gathered  force  till  more  than  300  different 


rUBLIC, OWNERSHIP  OF  PUBLIC  UTILITIES.  209 

varieties  of  national  and  municipal  undertakings  in  the  prin- 
cipal countries  of  the  world  are  now  enumerated,^  and  the  list 
is  still  expanding.  The  primitive  man  was  an  individualist 
pure  and  simple.  He  wandered  in  primeval  forrests  in  the 
utmost  independence,  attending  to  his  own  wants  and  entirely 
innocent  of  co-operative  effort  for  the  public  good.  At  first 
man  had  to  depend  on  individual  effort  even  for  defense  of 
life.  His  own  strength  and  the  aid  of  such  of  his  fellows  as 
might  choose  to  come  to  his  aid  were  all  he  had  to  rely  upon. 
Pmt  after  a  time  as  men  grew  more  intelligent  they  found  a 
lietter  way.  They  united  in  tribes  and  nations  for  mutual  de- 
fense and  aggression.  The  whole  strength  of  the  nation  was 
put  behind  each  man  to  defend  him  from  harm.  Formerly 
it  had  taken  the  whole  of  a  man's  time  to  get  his  meals,  train 
himself  for  battle,  and  defend  himself  and  his  family,  and 
tliere  was  no  security  for  property  even  if  he  had  had  time  to 
accumulate  it.  But  the  nationalization  of  defense  brought 
far  greater  security  and  released  a  large  part  of  the  energy 
prviously  given  to  conflict  and  the  preparation  for  it,  and  made 
possible  the  commercial,  material,  intellectual  and  moral  de- 
velopment of  modern  times. 

There  was  a  time  when  the  only  remedy  for  injustice  was 
private  action.  Quarrels  were  fought  out  by  the  disputants 
and  such  of  their  neighbors  as  chose  to  join  in  the  affair.  A 
robbeiy  or  murder  was  punished  by  some  of  the  persons 
directly  affected.  But  the  administration  of  justice  has  be- 
som.e  a  public  business  now,  except  as  between  a  corporation 
and  its  employes,  where  the  old  method  persists  in  the  form  of 
■trikes  and  lockouts. 

There  was  a  time  when  education  and  fire  protection,  roads, 
bridges  and  canals,  hospitals,  parks,  cemeteries,  etc.,  were 
wholly  private  affairs.  E'ow  they  are  very  largely  public. 
Private  turnpikes  and  bridges  are  getting  scarce,  and  the  pub- 
lic schools  are  overwhelmingly  predominant  up  to  the  college 
or  academy  grade.  The  rapid  movement  toward  public  ab- 
sorption of  water  works,  gas  and  electric  plants,  street  rail- 


1  Vrooman's    "Government    Ownership." 
14 


210  THE  CITY  FOE  THE  PEOPLE.     ^ 

ways,  telegraphs,  telephones  and  railroads  has  already  been 

noted. 

Is  tliis  movement  a  mistake?  Shall  we  abandon  the  public 
water  works,  and  the  post  office,  the  public  streets,  bridges, 
parks,  libraries,  museums,  schools,  courts,  armies,  navies,  etc.  ? 
Shall  we  give  the  army  to  a  Yerkes  syndicate?  And  the  navy 
to  a  Gould  corporation?  Shall  we  give  up  the  courts  to  a 
Rockefeller  trust?  Or  the  roads  and  schools  to  a  Hanna  com- 
bine? If  not,  if  we  would  not  think  of  going  back  to  private 
o\vnership,  in  the  businesses  that  have  been  given  to  public 
management,  then  let  us  be  consistent  and  aid  the  movement 
to  give  other  similar  industries  the  benefits  of  public  operation 
and  complete  co-operation.  Would  you  think  well  of  one  who 
opposed  the  estabhshment  of  public  courts,  or  schools,  or  high- 
ways, or  wat€r  works  years  ago?  If  not,  be  careful  not  to  op- 
pose the  corresponding  movements  of  your  own  time.  Per- 
haps we  can  help  ourselves  most  clearly  to  see  the  matter  in 
its  true  light,  by  remembering  that  even  the  government  itself 
was  not  so  very  long  ago  a  private  monopoly,  owned  by  the 
king  or  emperor  or  a  few  aristocrats,  and  that  the  chief  com- 
plaint about  it  now,  where  complaint  exists,  is  that  it  is  still 
too  much  subject  to  private  control,  that  is,  its  socialization  is 
not  yet  perfect,  and  progress  requires  the  completion  of  the 
process.^ 


*  Public  ownership  may  come  thru  government  action  or  thru  the  gradual 
crystallization  of  co-operative  groups  in  wider  and  wider  circles  till  the  all- 
inclusive  circle  of  public  ownership  is  reached.  The  latter  is  probably  the 
superior  method  where  it  is  practicable,  especially  in  fields  not  occupied 
by  oppressive  and  conscienceless  monopolies.  The  extent  to  which  public 
ownership  and  co-operative  effort  have  replaced  separate  individual  action  in 
any  community  is  one  of  the  surest  tests  of  the  degree  of  its  civilization. 

The  ordinary  processes  of  development  are  well  described  in  a  paragraph 
by  Prof.  Sellgman  of  Columbia  University  in  the  New  York  Independent 
May  6,  1897.    I  have  called  it: 

The  Five  Stages. 

"In  all  the  media  of  transportation  and  communication  there  seems  to 
be  a  definite  law  of  evolution.  Everywhere  at  first  they  are  in  private  hands 
and  used  for  purposes  of  extortion  or  of  profit,  like  the  highways  in  medi- 
eval Europe,  or  the  early  bridges  and  canals.  In  the  second  stage  they  are 
'affected  with  a  public  interest,'  and  are  turned  over  to  trustees,  who  are 
permitted  to  charge  fixed  tolls,  but  are  required  to  keep  the  service  up  to  a 
certain  standard;  this  was  the  era  of  the  canal  and  turnpike  trusts  or  com- 
panies. In  the  third  stage  the  Government  takes  over  the  service,  but 
manages  it  for  profits,  as  is  still  the  case  to-day  in  some  countries  with  the 
post  and  the  railway  system.  In  the  fourth  stage,  the  Government  charges 
tolls  or  fees  only  to  cover  expenses,  as  until  recentlv  in  the  case  of  canals 
and  bridges,  and  as  is  the  theory  of  the  postal  svstern  and  of  the  municipal 
water  supply  with  us  at  the  present  time.  In  the  fifth  stage  the  Govern- 
ment reduces  charges  until  finally  there  is  no  charge  at  all,  and  the  ex- 
penses are  defrayed  by  a  general  tax  on  the  communitv.  Tliis  is  the  stage 
now  reached  in  the  common  roads  and  most  of  the  canals  and  bridges,  and 
which  has  been  proposed  by  oflJcials  of  several  American  cities  for  other 
Bervlces,  like  the  water  supply." 


public  ownership  of  public  utilities.  211 

Public  Sentiment  and  Authority. 
Jefferson  and  Jackson. 

While  Thomas  Jefferson  was  President,  in  1806,  Congress 
passed  an  act  for  the  construction  of  a  national  road  from 
Cumberland,  Maryland,  thru  Virginia  into  the  State  of  Ohio, 
and  the  act  received  the  President's  approval.  This  was  as 
great  a  public  enterprise  for  that  day  as  the  building  of  a 
national  railway  from  ocean  to  ocean  would  be  to-day.  In  his 
writings  Jefferson  strongly  approves  of  national  roads  and 
canals,^  and  shows  a  settled  belief  in  the  policy  of  internal  im- 
provements under  public  initiative  and  control.  This  is  the 
ground  one  would  naturally  have  expected  the  Father  of 
Democracy  to  take,  but  men  do  not  always  do  what  you  ex- 
pect them  to.  Jefferson,  however,  was  a  consistent  democrat 
in  his  industrial  as  well  as  in  his  political  philosophy. 

President  Jackson  also  believed  in  public  ownership.  By 
his  wTiting-s  and  his  votes  he  was  committed  to  an  internal  im- 
provement policy.^  In  his  inaugural,  1829,  he  said:  "Internal 
improvements  and  the  diffusion  of  knowledge  so  far  as  they 
can  be  pushed  by  the  constitutional  acts  of  the  Government 
are  of  high  importance."^  In  his  very  first  message  (1829) 
General  Jackson  declared  war  on  the  Corporation  Bank  of  the 
United  States.  He  said  that  its  stockholders  would  ask  for 
renewal  of  privileges  at  the  expiration  of  its  charter  in  1836, 
but  he  should  advocate  a  National  Bank  to  belong  to  the  Gov- 
ernment, instead  of  a  corporate  bank  belonging  to  a  few  stock- 
holders. He  did  the  same  thing  in  his  second  and  third  mes- 
sages.^ The  bank  question  was  made  an  issue  in  the  presi- 
dential election,*  and  Jackson  won  and  vetoed  the  re-charter 


*  See  Tucker's  Life  of  Jefferson,  vol.  II.,  pp.  218,  448,  521;  also  "Memoirs, 
etc.,  of  Jefferson,"  edited  by  T.  J.  Randolph.  In  letters  to  Edward  LIt- 
ingrston  and  others  Jefferson  doubts  whether  Congress  has  power  to  pass  a 
road  or  canal  bill  (at  least  without  providing  fm-  the  assent  of  the  states 
affected  as  in  the  Cumberland  law)  and  recommends  an  amendment  that  will 
give  the  national  government  full  i)ower  to  make  roads  and  canals,  saying 
"There  is  not  a  state  in  the  Union  which  would  not  give  the  power  willingly 
by  way  of  amendment."  (Letter  to  Livingston  April  4.  1824.)  It  seems  that 
the  sentiment  of  Jefferson's  compatriots  was  also  strong  in  favor  of  public 
improvements  and  not  so  particular  about  explicit  authorization  by  special 
amendment.  Jefferson  says  in  a  letter  to  Madison  In  Dec,  1825,  after  the 
President's  Message,  "The  torrent  of  general  opinion  sets  so  strongly  in  favor 
of  it  (national  roads,  and  canals,  and  other  internal  improvements)  as  to  be 
irresistible." 

'  Parton's  Life  of  Jackson,  vol.  3  p.  171. 
»  Ibid  pp.  272,  342,  374. 

♦  Ibid  n.  395. 


212  THE  CITY  FOll  THE  PEOPLK. 

bill,  saying  "Here  is  a  small  body  of  men  and  women,  the 
stockholders  of  the  Bank  of  the  United  States,  upon  whom 
the  Federal  Government  has  bestowed,  and  by  the  renewal  bill 
proposes  to  continue,  exclusive  privileges  of  immense  pecun- 
iary value,  and  by  doing  so  restricts  the  liberty  of  all  other 
citizens.  This  is  a  monopoly.''^  Then  follows  a  statement  of 
specific  e\'ils,  in  which  the  President  says  that  such  a  franchise 
will  enable  ''a  few  individuals  to  wield  a  power  dangerous  to 
the  institutions  of  the  country."  The  General  was  able  to 
defeat  the  corporate  bank,  but  he  could  not  establish  a  public 
bank  without  the  co-operation  of  Congress. 

A  National  Telegraph. 

In  1844  Henry  Clay  eloquently  advocated  national  owner- 
ship of  the  telegraph.  He  foresaw  from  the  very  start  the 
dangers  of  a  telegraph  monopoly  in  private  hands.  For  half 
a  century  Congress  has  been  bombarded  with  appeals  for  a 
postal  telegraph,  Charles  Sumner,  Hannibal  Hamlin,  Gen- 
eral Grant,  Senators,  Edmunds,  Dawes,  Chandler,  and  X.  P. 
Hill,  General  B.  F.  Butler,  John  Davis,  Postmaster-Generals 
Johnson,  Eandall,  Maynard,  Howe,  Creswell,  and  Wana- 
maker.  Professor  Morse,  the  inventor  of  the  telegraph,  Cyrus 
W.  Field,  the  founder  of  the  Atlantic  Cable  and  a  director  in 
the  Western  Union  Company,  James  Gordon  Bennett,  Pro- 
fessor Ely,  Rev.  Lyman  Abbott,  B.  O.  Fowler,  Judge  Clark, 
Henry  D.  Lloyd,  Dr.  Taylor,  T.  V.  Powderly,  Samuel  Gom- 
pers,  Marion  Butler,  and  a  host  of  other  eminent  men  in  every 
walk  of  life  have  championed  the  cause  of  the  people.  James 
llussell  Lowell,  Phillips  Brooks,  Francis  A.  Walker,  and 
others  of  the  highest  character  and  attainments  have  expressed 
their  sympathy  with  the  movement.  Legislatures,  city  coun- 
cils, boards  of  trade,  chambers  of  commerce,  and  labor  organi- 
zations representing  millions  of  citizens  have  joined  in 
the  effort  to  secure  a  national  telegraph.  The  ISTew  York 
Herald,  Boston  Globe,  Philadelphia  Times,  Chicago  Tribune, 
Albany  Express,  Washington  Gazette,  Omaha  Bee,  Denver 
Republican,  San  Francisco  Post,  and  a  multitude  of  other 

>  Ibid.  p.  406. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  213 

papers  representing  every  phase  of  political  opinion  have 
earnestly  advocated  the  measure.  Two  political  parties  have 
definitely  demanded  a  government  telegraph;  more  than  two 
millions  of  men  by  vote  and  petition  have  asked  for  it. 

Nineteen  times  committees  of  the  House  and  Senate  have  re- 
ported on  the  question,  seventeen  times  in  favor  of  the  measure 
and  t-\vice  against  it.  One  of  the  latter  is  a  mild  two  page  re- 
port made  without  investigation  by  John  H.  Keagan  of  Texas. 
The  other  adverse  report  was  made  in  1869,  on  the  ground 
that  the  five  years  of  security  promised  the  companies  by  the 
law  of  1866  had  not  yet  elapsed. 

The  following  opinions  of  eminent  men  show  the  drift  of 
sentiment  and  authority  in  favor  of  public  ownership  and 
operation  of  street  railways.  They  are  extracts  from  letters 
written  to  me  during  the  Boston  campaign  for  municipal  own- 
ership in  1897. 

Municipal  Ownership  of  Street  Railways. 
Opinions  of  Eminent  Men.^ 
Dr.  Lyman  Abbott: 

"I  am  heartily  in  favor  of  municipal  ownership  of  street  rail- 
ways. The  experience  of  Manchester  and  Glasgow  abroad  has 
shown  what  may  be  done  under  right  conditions;  but  we  have 
another  illustration  nearer  home,  and,  in  some  respects  more  con« 
vincing.  The  Brookh'n  Bridge  is  both  owned  and  operated  by  a 
joint  commission  representing  the  two  cities  of  New  York  and 
Brooklyn.  The  government  of  these  two  cities  has  been,  in  the 
past,  thoroughly  corrupt,  yet  I  think  there  are  very  few  persons 
who  doubt  that  the  conveniences  for  the  traveller  furnished  by 
the  Brooklyn  Bridge  are  very  much  better  than  those  furnished 
by  the  elevated  system  of  railway's  or  by  the  trolley  cars  on  either 
side  the  river.  Moreover  the  fares  on  the  railroad  have  been  di- 
minished, and  the  fares  for  foot  passengers  abolished.  No  money- 
making  corporation  could  be  expected  to  do  the  latter;  probably 
no  money -making  corporation  would  have  done  the  former.  In 
my  judgment,  our  cities  are  quite  competent  to  own  and  operate 
their  own  municipal  systems,  and  municipal  ownership  and  opera- 
tion, instead  of  increasing,  would  diminish  corruption,  which  is 
now  largely  due  to  the  partnership  between  corporations  and  the 
city." 

Dr.  Felix  Abler: 

"I  am  strongly  in  favor  of  municipal  ownership  wherever  grave 
political  objections  do  not  stand  in  the  way.     (I  should  not  have 


Soe  further  Appendix   II,   G   to   L. 


214  THE  CITY  FOR  THE  PEOPLE. 

favored  municipal  ownership  in  New  York  at  the  time  niien  Tam- 
many was  still  in  power.)  And  my  reasons  are  two:  First,  the 
advantage  to  the  general  public  in  the  shape  of  cheaper  fares, 
beter  service  and  the  like.  Second,  the  advantage  to  be  expected 
to  accrue  to  the  employees,  and,  indirectly  to  the  wage-earning 
class  in  general  by  a  tendency  to  advance  wages  and  to  improve 
the  conditions  under  which  labor  is  performed." 

Pbofessor  Richard  T.  Ely: 

"I  am  much  pleased  to  learn  that  there  is  a  strong  movement  in 
Boston  to  secure  municipal  ownership  of  the  street  railways.  It 
is  especially  encouraging  to  know  that  the  association  formed  for 
this  purpose  includes  such  men  as  Hon.  Robert  Treat  Paine,  Dr. 
Edward  Everett  Hale,  Mr.  Edwin  D.  Mead,  Col.  Thomas  Wentworth  " 
Higginson  and  Hon.  Josiah  P.  Quincy.  1  need  scarcely  say  that  I 
am  in  entire  sympathy  with  the  movement.  I  have  heard  of  noth- 
ing recently  which  strikes  me  as  more  encouraging.  It  gives  one 
new  hope  for  the  future  of  the  country.  If  the  movement  is  suc- 
cessful it  will  not  only  give  decided  direct  benefits  to  the  people 
of  Boston  in  the  way  of  cheaper  transportation  and  improved  ser- 
vice, but  it  will  bring  indirect  benefits  to  which  even  more  import- 
ance must  be  attached;  it  will  contribute  to  the  purification  and 
elevation  of  political  life.  It  will  be  the  greatest  contribution  to 
municipal  reform  yet  effected  in  the  United  States." 

Wm.  Dean  Howells: 

"I  am  heartily  in  favor  of  municipal  ownership  of  street  railways, 
because  it  will  cheapen  the  fares  to  those  who  most  need  cheap 
fares,  and  will  best  serve  all  the  interests  of  the  public.  I  think 
there  is  every  reason  for  it,  and  I  have  never  heard  of  one  against 
it,  though  I  have  heard  of  some  arguments,  and  I  know  there  are 
some  prejudices." 

Henby  D.  Lloyd: 

"The  organization  which  you  have  formed  to  secure  the  owTier- 
ship  of  the  street  railwajs  of  Boston  by  the  city,  seems  to  me  one 
of  the  most  important  movements  which  has  ever  been  undertaken 
in  Boston  for  the  emancipation  of  the  people.  The  sentiment  in 
favor  of  municipal  ownership  of  such  monopolies  I  find  very  strong 
over  the  country;  and  I  believe  that  the  initiative  which  you  in 
Boston  have  taken,  will  have  a  powerful  effect  in  crystalizing  that 
sentiment  into  action.  Cities  should  own  monopolies  for  the  sup- 
ply of  the  necessaries  of  life  like  transportation,  water,  etc.,  be- 
cause it  is  as  true  of  communities  as  of  individuals  that  if  they 
want  their  business  well  done,  they  must  do  it  themselves;  and  this 
is  certainly  their  business.  The  public,  as  experience  proves,  can- 
not resist  the  intense,  powerful,  and  concentrated  manoeuvres  of 
private  ownership.  The  diffused  interest  of  the  public  is  an  un- 
equal antagonist  in  su'^h  a  struggle. 


rUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES,  215 

"The  great  secret  of  social  wealth  is  co-operation,  and  it  must 
now  be  acknowledged  to  have  been  proved  abundantly  by  exper- 
ience that  citizens  can  co-operate  as  successfully  as  stockholders. 
Private  administration  of  such  supply  of  the  necessaries  of  life  is 
the  most  expensive.  The  public  will  work  for  itself  without  the 
cost  of  the  enormous  profits  which  are  now  paid.  There  is  an 
irrepressible  conflict  between  private  self-interest  and  public  self- 
interest.  Private  self-interest  must  economize  on  speed,  seats, 
extensions,  and  in  every  other  possible  way,  while  it  is  to  the  profit 
of  the  public  to  pursue  the  opposite  course.  It  is  impossible  for 
private  self-interest  to  take  into  account  in  its  extensions  and 
fares  such  a  public  consideration,  for  instance,  as  the  distribution 
of  the  population  in  healthful  instead  of  unhealthful  districts; 
whereas  it  would  be  to  the  direct  interest  of  the  public  to  put  this 
first.  In  illustration:  it  was  recently  pointed  out  in  a  debate  in 
the  London  County  Council  that  a  large  working-class  population 
had  been  settled  in  the  environs  of  London  on  a  low  and  very 
tinhealthful  flat,  though  just  beyond  was  a  range  of  high  and  salu- 
brious hills  which  were  inaccessible  on  account  of  the  greater  cost 
of  reaching  them.  It  would  be  money  in  the  pocket  of  the  com- 
munity to  carry  these  people  past  the  miasmatic  lands  and  settle 
them  on  the  hills.  But  only  the  public  could  let  such  a  source  of 
profit  enter  into  its  calculations.  It  is  not  to  the  interest  of  the 
public  that  working  men  and  women  or  working  children,  or  any 
of  the  rest  of  the  population,  should  be  huddled  in  tenements  in- 
stead of  being  scattered  amid  healthful  surroundings;  nor  that 
they  should  be  over-taxed  two  cents  twice  a  day,  for  an  extor- 
tionate profit  to  the  stockholders  of  the  street  car  company.  This 
four  cents  a  day  amounts  to  a  tax  of  twelve  dollars  a  year;  and 
yet  the  per  capita  share  of  each  inhabitant  of  this  country  in  the 
cost  of  the  Federal  Government  is  only  $4.50  a  year." 

Dr.  W.  S.  Kainsford: 

"To  my  mind,  the  question  of  municipal  ownership  of  city  fran- 
chises is  quite  one  of  the  more  important  issues  before  our  people. 
The  chief  hardship  in  the  life  of  the  working-people  in  the  cities 
of  the  United  States,  more  especially  the  Eastern  cities,  is  the 
enormous  rent  they  are  obliged  to  pay — a  rent  often  amounting 
to  30  per  cent,  of  their  gross  earnings,  which  percentage  is  eco- 
nomic ruin.  Now  where  the  rents  are  high,  city  franchises  are 
proportionally  valuable.  It  can  be  proved,  for  instance,  that  in 
the  City  of  New  York,  the  franchises  are  more  valuable  than  in  any 
other  city  in  the  world.  Now,  these  franchises  are  the  absolute  prop- 
erty of  the  citizens.  It  must  be  apparent  to  everyone  that  they 
should  be  so  managed,  that  from  them  the  public  may  receive  the 
maximum  of  profit.  Now,  as  a  matter  of  fact,  the  franchises  have 
been  used  by  the  ins  in  city  politics  to  bribe  their  way  into  power. 
The  city's  franchises  have  been   consec[uently  a   fat  purse  out  of 


216  IHE  CITY  FOB  THE  PEOPIJfl. 

which  enormous  rewards  are  paid  for  political  support.  And 
who  is  the  loser?  Above  all,  the  working-man,  whose  rent,  or  to 
use  another  word  equivalent  to  that,  whose  taxes  the  proceeds  of 
these  franchises  would  enormously  reduce.  To-day,  for  instance, 
the  City  of  New  York  raises  close  on  $40,000,000  a  year  in  taxes. 
I  believe,  if  the  franchises  of  that  city,  docks,  ferries,  railroads,  gas, 
etc.,  were  on  an  absolutely  honest  basis,  carried  on  as  business 
concerns  for  the  city's  benefit,  the  net  income  arising  from  them 
would  be  over  $15,000,000  a  year. 

"The  objection  immediately  raised  to  any  and  every  scheme  of 
municipalization  of  the  franchises  is,  you  cannot  do  those  things 
until  you  have  got  an  honest  and  competent  civil  service.  To  such 
an  objection  I  reply  boldly:  there  is  one  way  and  one  way  only 
to  get  honesty  and  competence  in  civil  service,  and  that  is  by 
making  the  service  of  such  vital  importance  to  the  public,  that 
the  public  itself  will  insist  on  an  honest  service.  Nor  is  this  an 
idle  dream.  It  has  been  and  is  being  carried  into  splendiH  effect 
in  scores  of  the  principal  municipal  centres  in  the  Old  World," 

Dr.  Chas.  B.  Spahk: 

"I  believe  in  municipal  ownership  of  street  railways,  because  only 
through  such  ownership  can  charges  be  reduced  to  the  cost  of  the 
service,  and  the  competitive  rate  of  interest  on  the  capital  actually 
invested.  The  fixing  of  street  car  fares  to  pay  interest  on  capital 
never  lent  to  the  public,  I  regard  as  extortion  of  a  peculiarly  in- 
jurious kind.  It  is  economically  w^asteful,  because  it  cuts  in  two 
the  normal  patronage  of  the  road,  and  so  prevents  the  reduction 
in  the  cost  of  service  which  increased  patronage  would  bring.  It 
is  unjust  politically,  because  the  tax  takes  the  same  amount  from 
families  worth  less  than  one  thousand  as  from  families  worth  naore 
than  one  million.  It  is  unjust  socially  because  it  aggravates  the 
over-crowding  of  the  poor  into  the  immediate  neighborhood  of  the 
workshops.  Within  twenty  miles  of  New  York  there  are  as  many 
acres  as  there  are  families,  and  with  rapid  transit  such  as  muni- 
cipal ownership  could  afford,  the  evils  of  the  tenement  house 
system  would  be  abolished." 

I>R.  C.  F.  Tayxor: 

"It  is  strange  that  it  is  so  hard  to  awaken  the  i)eople  to  the 
fact  that  they  are  heavily  taxed  by  private  corporations.  Your 
'Arena'  articles  conclusively  proved  that  with  public  lines  street 
transit  is  practicable  at  2  cent  fares  in  our  larger  cities.  Our  citi- 
zens are  taxed  three  extra  cents  for  street  car  fare.  If  a  man  or 
a  woman  rides  to  work  in  the  morning  and  back  in  the  evening, 
that  means  a  tax  of  6  cents  per  day.  By  riding  home  to  dinner 
and  back  to  work  again,  it  means  a  tax  of  12  cents  a  day,  and 
if  we  add  fares  to  and  from  a  place  of  gmusement  in  the  even- 
ing, it  means  a  tax  by  the  street  railway  companies  of  18  cents 
per  day.     If  we  calculate  this  by  the  year,  we  are  better  able  to 


PUBLIC  OWXEKSHIP  OF  PUBLIC  UTILITIES.  '  217 

realize  the  burden  of  this  great  and  unjust  tax.  If  a  shop  girl 
rides  to  her  business  in  the  morning  and  back  in  the  evening,  she 
is  compelled  to  pay  10  cents  for  the  two  trips  instead  of  4  cents, 
which  it  would  be  at  2  cents  per  ride.  This  tax  of  6  cents  per 
day  amounts  to  36  cents  per  week,  and  for  the  fifty-two  weeks  in 
the  year,  it  amounts  to  $18.76.  If  we  add  extra  rides  on  Sundays, 
holidays,  evenings,  etc.,  the  amount  of  the  tax  will  easily  foot  up 
to  $25  per  year.  That  such  a  tax  should  be  levied  on  shop  girls, 
seamstresses,  mechanics,  washerwomen,  bootblacks,  etc.,  is  out- 
rageous. The  wealthier  classes  of  citizens  as  a  rule,  pay  a  much 
heavier  tax,  for  they  ride  more  frequently,  not  having  to  count 
the  cost  of  such  a  seeming  trifle  as  a  street-car  fare.  So  the  per- 
sonal tax  from  this  source  upon  the  average  merchant  or  lawyer 
would  be  two  or  three  times  more  than  that  upon  the  average  shop- 
girl, or  from  $50  to  $75  per  year.  But  when  we  add  to  this  the 
tax  upon  the  members  of  an  average  familj',  the  amount  increases 
heavily.  Take,  for  example,  the  family  of  a  mechanic,  whose  son 
is  an  apprentice,  whose  daughter  is  a  shop  girl  or  seamstress,  and 
whose  daughter  at  home  attends  the  High  School.  This  tax  falls 
heavily  every  day  upon  the  four  members  of  this  family,  and  also 
upon  the  wife  whenever  she  goes  down  town. 

"Does  the  average  voter  think  of  this  on  election  day?  Suppose 
this  tax  were  paid  every  year,  instead  of  every  day  in  the  year. 
Then  imagine  our  voters  going  up  to  the  polls,  each  one  paying  his 
street-car  tax  and  then  casting  his  ballot.  As  we  have  seen  above, 
many  a  mechanic  with  an  average  family  would  have  to  pay 
$50  or  $100;  a  merchant  or  professional  man  would  be  taxed 
much  more  heavily,  particularly  if  he  has  a  large  family.  Suppose 
we  iraagine  a  procession  at  the  polls  on  election  day,  each  voter 
depositing  his  street  railway  tax  for  the  year,  and  then  depositing 
his  ballot,  do  you  think  it  would  take  him  many  years  to  find  out 
that  by  municipal  street  car  ownership  all  this  tax  could  be  saved? 
Perhaps  the  average  voter  would  rather  devote  a  few  hours  now 
and  then  to  the  subject  of  municipal  transportation,  and  save  this 
heavy  yearly  tax.  Yet  now  he  pays  the  tax  just  the  same,  only 
daily  instead  of  yearly,  and  it  is  difficult  to  wake  him  up  to  the 
fact  that  he  is  paying  any  tax  at  all.  And  this  is  taxation  without 
representation.  The  voters  have  no  representative  in  the  mangiug 
board  of  the  street  car  companies." 

Since  the  Boston  campaign  a  "l^ational  League  for  Pro- 
moting the  Public  Ownership  of  Monopolies"  has  been  formed 
to  spread  a  knowledge  of  the  facts  about  monopoly,  and  issue 
brief  statements  of  opinion  from  time  to  time  as  occasion  may 
require.  The  association  is  called,  for  short  "The  N.  P.  O. 
League."    The  following  ie  a  list  of  the 


218  THE  CITY  FOK  THE  PEOPLE. 

MEMBERSHIP 

Of  the  National  League  for  Promoting  the  Public  Ownership  of  Moiiopolie-?.' 

Dr.  Edward  Everett  Hale.   Boston.  Prof.  Frank  Parsons,  Boston 

ReV.  B    Fav  Mills,   Boston.  Dr.  Charles  B    Spahr    New  loik. 

Onv    P  nffree    Detroit.  Hon.  G.-orge  Fred  Williams.  Boston. 

r)?^Jo3clark  mdpath.  New  York.  Pres.  Thomas  E.  Will,  Manhattan. 

William  Dean  Howells,  New  York.  Henry  D.  Lloyd,  Chicago. 

Senator  Marion  Butler,  AVashington.  Dr.  C.  F.  Taylor,  Philadelphia. 

Hon.  Herbert  Welsh.  Philadelphia  B.  O.   Flower,   Boston 

Prof.  John  R.  Commons,  New  York.  Pres.  George  A.   Gates,  Grlnnell. 

Jir.    W.    S.   Ralnsford.   New   York.  N.  O.  NeLson,  St    Louis. 

Prof.  George  D.  Herron,  Grlnnell.  Hon.   John   Breideiithal,   Topeka. 

Samuel   Gompers,   Washington.   .  Prof.  Graham  Taylor,  Chicago 

Rev.    Washington     Gladden,     Colum-  Hon.  S.   M.Jones,  Mayor  of  Toledo. 

bus                *'  Wm.     A.     Clark,      Lincoln      House, 

Prof.' J.  Allen  Smith,   Seattle.  Boston. 

Dr.  E.   B.  Andrews,  Chicago.  Marion  M.  Mil  er.  New  York. 

Rev.    Russell    H.    Couwell,    Philadel-  Miss  Diana  Hirschler,    Philadelphia. 

nlila  Prof.  Helen  Campbell,  Denver. 

Rev.  Chas.  M.  Sheldon,  Topeka.  Rev.  W.  D.  P.  Bliss,  Los  Angeles. 

Hon.   S.   L.   Black,   Mayor  of  Colum-  Miss  Helen  Potter,   Boston. 

b„s    o  Pres.  Frances  E.  Willard.* 

Edwa'rd  Bellamy.*  Edwin  D.   Mead.   Boston. 

Coi.   Thomas  Wentworth  Higginson,  Gov.  Rogers,  Olympia,  Wash. 

Cambridge.  F.  U.  Adams,  Chicago 

Hon.  Henry  Truelsen,  Mavor  of  Du-  Dr.  Anna  Shaw,  Philadelphia. 

luth.  Robert  A.  Woods,  Boston. 

Ex-Gov.    Wm.    Larrabee,    Clermont,  Hon.  T.   S.   McMurray,   Ex-Mayor  of 

Iowa.  Denver. 

Charlotte     Perkins      Stetson,      New  John  DeWltt  Warner,  New  York 

York.  Hon.  John  MacVlcar,  Mayor  of  Des 

Rev.    Herbert    N.     Casson,     Ruskln,  Moines. 

Tenn.  Dr.  Geo.  C.  Lorlmer,  Boston. 

Pres.  Eltweed  Pomeroy,  Newark.  Hon.  Lee  Meriweather,  St.  Louis. 

Ex-Gov.    John    P.    St.    John,    Olathe,  Mary   A.    Livermore.    MpIvosp.    Mass. 

Kans.  Elizabeth  Cady  Stanton,  New  York. 

•  Deceased  since  joining  the  League.                   , 

The  first  person  named  in  the  right  hand  column  is  Presi- 
dent of  the  League ;  the  next  seven,  together  with  the  Presi- 

iThe  purposes  of  the  National  League  for  Promoting  Public  Ownership 
of  Monopolies  are: 

(1)  To  educate  the  people  upon  the  monopoly  question. 

(2)  To  bring  a  national  weight  of  opinion  and  authority  to  bear  upon 
local,  state  or  national  efforts  In  the  direction  of  public  ownership  when- 
ever it  may  seem  wise  to  do  so.  Brief  statements  of  fact  and  expressions 
of  opinion  will  be  issued  from  time  to  time  by  the  League  or  Its  executive 
council.  The  association  Is  not  political,  but  may  direct  attention  to  legisla- 
tive measures,  and  advocate  them  before  legislatve  committees  and  the 
public. 

Membership  in  the  association  does  not  commit  one  to  the  unqualified 
advocacy  on  any  and  every  occasion  of  the  immediate  absorption  of  mono- 
polies by  the  public.  It  Is  the  principle  of  public  co-operative  effort  as  a 
promising  remedy  for  the  evils  of  opresslve  private  monopoly  that  th-^'  asso- 
ciation has  In  view— the  principle  to  be  applied,  not  hastily  and  indiscrimi- 
nately, hut  with  due  regard  to  all  the  conditions  of  each  particular  case. 

Membership  is  confined  to  persons  who  have  done  earnest  work  in  some 
progressive  or  humanitarian  field,  or  whose  position,  character  and  attain- 
ments give  their  opinions  a  commanding  weight,  and  their  services  a  special 
value.  Names  of  such  persons  may  be  proposed  for  membership  and  may 
be  submitted  by  the  president  or  executive  council,  and  shall  be  submitted 
on  a  petition  of  five  per  cent  of  the  existing  membership  and  upon  a  two- 
thirds  referendum  vote  to  that  effect  the  persons  so  proposed  shall  become 
membera. 

No  statements  will  be  Issued  in  the  name  of  the  League  until  adopted 
by  a  referendum  vote.  Any  member  disapproving  a  statement  may  require 
that  fact  to  be  specified  in  case  the  statement  is  issued  by  the  League. 
Statements  may  be  submitted  to  a  referendum  by  the  president  or  executive 
council,  and  upon  an  Initiative  of  five  per  cent  of  the  members  the  president 
shall  submit  the  statement  or  statements  set  forth  in  the  petition. 

The  League  and  its  purposes  and  methods  shall  be  subject  to  modifica- 
tion by  a  two-thirds  referendum  vote.  Such  change  may  be  submitted  at 
any  time  by  the  president  and  executive  council,  and  shall  be  submitted  by 
them  on  a  twenty  per  cent  petition  to  that  eCfei't. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTIHIIES.  219 

dent,  constitute  the  Executive  Council;  and  the  first  sixteen 
in  the  left  hand  column  are  Vice  Presidents.  Several  state- 
ments have  already  been  adopted  for  issue  by  referendum  vote 
of  the  League,  among  them,  "The  Two  Bridges,"  "The  Five 
Stages,"  and  "The  Wisdom  of  Glasgow,"  already  quoted,  and 
the  opinions  by  Mayor  Jones,  Mayor  Mac  Vicar,  Dr.  Shaw 
and  Professor  Ely,  cited  below,  and  "The  Kailroads  of  Swit- 
zerland," given  at  the  close  of  this  section. 

I  would  like,  if  it  were  possible,  to  quote  from  every  one  of 
the  distinguished  members  of  the  League,  but  space  forbids 
more  than  a  few  citations,  from  the  large  amount  of  valuable 
material  at  hand.  The  following  is  an  extract  from  the  opin- 
ion by  Hon.  S.  M.  Jones,  the  famous  Golden  Rule  Mayor  of 
Toledo,  adopted  by  the  League: 

"The  movement  for  public  ownership  is  government  seeking  the 
good  of  all  as  against  the  individual  who  seeks  only  his  own  good. 
It  is  a  recognition  of  the  fundamental  fact  that  the  humblest  citizen 
is  entitled  to  the  greatest  degree  of  comfort  that  associated  effort 
can  provide.  It  is  organized  love,  manifesting  itself  in  service.  It 
is  patriotism  of  the  highest  and  purest  type.  It  is  the  casting  dow^n 
of  idols  and  the  lifting  up  of  ideals.  It  is  dethroning  the  million- 
aires and  exalting  the  millions.  Happily,  we  are  passing  away 
from  the  abject  worship  of  mere  dollars  to  a  realization  of  the  truth 
so  tersely  stated  by  the  simple  Nazarene  nearly  nineteen  hundred 
years  ago:  Ye  cannot  worship  God  and  Mammon.  And  we  are 
coming  to  measure  men  not  by  their  ability  to  organize  industry 
and  use  their  fellovr  men  simply  as  profit-raaking  machines  but 
by  their  abilitj'^  to  organize  industry  and  serve  their  fellow  men. 

"  'Municipal  ownership  is  all  right  with  regard  to  water  works, 
but  not  as  to  street  railways,'  said  a  learned  judge  to  me  recently. 
If  I  were  a  young  man  that  had  been  trained  to  a  proper  respect 
for  the  bench,  I  presume  I  would  have  accepted  this  declaration  as 
final,  because  of  the  learning  of  the  judge,  but  had  this  judge  used 
his  reason  instead  of  accepting  the  reasoning  of  some  hired  man 
employed  by  the  corporations,  he  would  have  known  that  the  same 
principle  applies  to  both  classes  of  service,  and  that  if  it  is  good 
for  the  city  to  own  its  own  water  works,  it  is  good  that  every 
utility  that  ministers  to  all  of  the  people  shall  be  owned  in  the 
same  way. 

"The  people  will  learn  that  they  can  serve  themselves  better  with- 
out profit  than  a  priA-ate  corporation  can  serve  them  with  profit 
as  an  incentive  for  their  effort. 

"But  the  greatest  good  that  we  nre  to  find  through  municipal 
ownership  will  be  found  in  the  improved  quality  of  our  citizenship. 


220  THE  CITY  FOR  THE  PEOPLE. 

"I  believe  that  the  great  need  of  the  hour  is  that  the  people  shall 
be  educated  upon  this  subject  of  co-operation  in  social  service." 

The  following  statement,  adopted  for  issue  by  the  iN".  P.  O. 
Tyeague,  is  an  opinion  by  Hon.  John  Mac  Vicar,  Mayor  of 
DesMoines  and  ex-President  of  the  League  of  American 
Municipalities : 

"There  must  be  an  end  of  the  controlling  and  corrupting  of  our 
city  governments  by  those  interested  in  the  manipulating"  of  public 
utilities,  even  if  the  last  vestige  of  private  ovs^nership  in  them  shall 
be  up-rooted.  To  those  good  but  misguided  people  who  without 
having  perhaps  devoted  time  to  examination  of  the  subject,  and 
are  therefore  disposed  to  oppose  municipal  ownership  and  control 
of  the  natural  utilities  represented  by  water,  gas,  street  railway 
and  electric  lighting  plants,  I  would  put  this  pertinent  question: 
Whence  the  fertile  source  of  those  corrupt  influences  which  too 
often  debauch  city  councils,  and  as  often  lead  state  legislatures, 
and  perhaps  sometimes  our  national  Congress  astray?  Did  they 
ever  hear  of  a  city  or  state  tempting  a  public  official  with  briberj^ 
to  betray  the  interests  he  has  sworn  to  protect?  Surely  not.  The 
potent  cause  to  which  public  officials  sometimes  yield,  must  be 
sought  for  elsewhere.  Are  not  the  colossal  opportunities  offered 
through  the  medium  of  exclusive  privileges  granted  by  city  councils 
and  legislatures  the  very  foundation  of  this  evil?  I  think  you  will 
agree  with  me  that  they  are.  Therefore  if  these  valuable  fran- 
chises, these  splendid  privileges,  were  reserved  to  the  cities,  would 
not  this  source  of  corruption  which  has  caused  legislative  bodies 
to  become  a  byword  among  the  people,  cease  to  exist? 

"Such  a  change  involves  the  necessity  of  civil  service  reform.  .  .  . 
Burden  develops  responsibility.  There  is  a  reserve  of  patriotism 
and  capacity  of  self-government  in  our  citizenship,  to  which  we  are 
not  afraid  to  appeal.  Nothing  could  do  more  to  bring  out  the 
latent  virtue  of  the  indifferent  citizen  than  freighting  the  ship  of 
state  with  still  dearer  interests.  I  am  not  afraid  to  startle  our 
money-making  voters  by  producing  a  situation  which  will  alarm 
them  into  a  state  of  perpetual  political  vigilance.  Arouse  them 
to  the  seriousness  of  the  prevailing  conditions,  and  the  spasmodic 
energy  which  now  cleans  the  augean  stables  of  municipal  corrup- 
tion once  in  ten  or  fifteen  years,  would  be  harnessed  by  unavoidable 
necessity  into  constant  connection  with  the  public  services  whose 
functions  would  be  to  supply  them  with  street  transportation, 
light  and  water,  and  would  exert  an  influence  that  could  not  be 
satisfied  excepting  with  the  best  service  possible.  Every  citizen 
would  be  interested  in  securing  the  greatest  efficiency  in  the  public 
service  and  in  a  very  short  time  demands  would  be  made  by  a 
quickened  and  enlightened  popular  sentiment  for  the  enactment  of 
a  strict  civil  service  law.     So  long  as  the  corporate  interests  operate 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  221 

these  public  utilities  for  private  gain  just  so  long  will  we  have 
uncompromising  opposition  to  civil  service  and  good  city  govern- 
ment. Eemove  first  the  incentive  to  this  opposition,  which  to  my 
mind  can  be  accomplished  by  removing  our  public  franchises  from 
the  public  mart,  and  a  new  era  wull  dawn  in  which  the  best  citizen- 
ship will  be  the  dominant  force  in  municipal  government." 

Parts  of  the  opinion  by  Prof.  Ely  referring  to  corruption 
and  the  advantages  of  public  water  supply  have  already  been 
quoted.    A  few  further  paragraphs  may  be  of  interest  here : 

"I  unhesitatingly  advocate  public  ownership  and  management 
for  gas  works.  *  *  *  When  we  take  up  electric  lights,  we  shall 
find  no  reason  to  abandon  the  principle  of  local  self-government 
and  municipal  self-help.  *  *  *  Street  railroads  are  oue  of  the  most 
important  natural  monopolies,  and  a  tendency  for  public  owner- 
ship and  management  is  beginning  to  become  manifest.  There  is 
not  a  shadow  of  doubt  that  passengers  could  be  carried  in  Balti- 
more for  three  cents — more  than  is  charged  in  Berlin  where  the 
companies  must  keep  the  streets  paved  from  curb  to  curb,  must 
provide  each  passenger  with  a  seat,  must,  in  laying  tracks,  have 
some  respect  for  the  rights  of  owners  of  vehicles,  and  do  a  thousand 
and  one  things  which  an  American  corporation  does  not  dream  of, 
to  say  nothing  about  the  fact  that  in  1911  their  entire  property 
reverts  to  the  city  without  conapensation." 

The  following  paragraphs  adopted  for  issue  by  the  N.  P.  O. 
League,  are  from  Dr.  Albert  Shaw,  our  most  eminent  writer 
on  municipal  government,  and  one  of  the  world's  profoundest 
students  of,  and  highest  authorities  upon,  the  mimicipal  ques- 
tions we  are  considering: 

"All  the  monopolies  of  service,  such  as  gas,  water,  trams  and  the 
like,  should  belong  to  the  community.  Simplify  the  administration, 
trust  the  people,  give  the  mimicipality  plenty  to  do,  so  as  to  bring 
the  best  men  to  the  work,  keep  all  the  monopolies  of  service  in  the 
hands  of  the  municipality,  and  use  the  authority  and  influence  of 
the  municipality  in  order  to  secure  for  the  poorest  advantages  in 
the  shape  of  cheap  trams,  healthy  and  clean  lodgings,  baths,  wash- 
houses,  hospitals,  reading  rooms,  etc. 

"The  pressure  that  would  be  brought  to  bear  on  the  government 
to  produce  corruption  under  municipal  ownership  of  monopolies 
like  gas,  electric  light,  transit,  etc.,  would  be  incomparably  less 
than  the  pressure  that  is  now  brought  to  bear  by  the  corporations. 

"The  wear  and  tear  upon  the  morals  of  a  weak  municipal  govern- 
ment are  greater  by  far  when  it  comes  to  the  task  of  granting  fran- 
chises—that is  to  say,  of  making  bargains  with  private  corpora- 
tions—than when  it  is  attempted  to  carry  out  a  business  undertak- 


222  THE  CITY  FOK  THE  PEOPLE. 

ing  directly  on  the  public  account.  Thus  jobbery  and  rascality, 
wastefulness  of  public  money,  and  bad  results  in  the  end,  are  more 
likely  to  be  the  outcome  when  the  contract  system  is  used  in  street 
cleaning,  paving  and  various  other  public  works,  than  when  the 
municipality  employs  its  own  men  to  clean  its  own  streets,  lay  its 
own  pavements,  and  do  its  own  public  work  on  direct  municipal 
account. 

"Our  municipal  officials  are  elected  or  appointed  for  short  terms. 
The  city's  legal  advisers  draw  small  salaries,  and  have  no  expecta- 
tion of  remaining  in  the  public  employ  for  more  than  a  few  brief 
j  years  at  most.  They  hope  and  expect  after  leaving  the  public  em- 
Iploy  to  find  lucrative  private  practice.  Such  practice  can  hardly 
(be  obtained  except  through  the  favor  of  the  rich  corporations. 
I  What  motive,  therefore,  could  impel  the  legal  advisers  of  an  Ameri- 
jcan  municipal  government  to  fight  desperately  for  the  public  in- 
jterest  as  against  the  great  array  of  legal  talent  representing  those 
'corporations  that  seek  to  gain,  to  enlarge  or  to  renew  franchises, 
on  terms  prescribed  by  themselves? 

"In  studying  German  contracts  one  is  always  impressed  with  a 
sense  of  the  first-class  legal,  financial  and  technical  ability  that  the 
public  is  able  to  command,  while  American  contracts  always  im- 
press one  with  the  unlimited  astuteness  and  ability  of  the  gentle- 
men representing  the  private  corporations. 

"The  ablest  lawyers  in  all  our  cities  are  retained  by  these  private 
corporations.  They  are  given  fat  fees,  directorships,  stocks  and 
bonds,  and  all  sorts  of  pecuniary  emoluments,  besides  political  and 
social  consideration.  In  return,  they  are  expected  to  use  their  sharp 
wits,  their  technical  knowledge  of  corporation  law,  and  their 
training  in  the  practical  art  of  politics,  to  get  the  better 
of  the  community  at  large,  and  thus  to  retain  or  obtain  for  the 
benefit  of  their  respective  corporations  very  valuable  public  privi- 
leges, which  ought  not  to  be  granted  at  all  except  upon  the  pay- 
ment of  their  full  value,  with  their  exercise  always  subject  to  full 
I  public  control.  When  municipal  franchises  and  privileges  are  to  be 
I  granted,  it  is  not  the  municipal  authorities  that  make  the  terms, 
btit  the  private  companies.  The  laws  and  ordinances  that  have  to 
do  with  the  granting  of  these  privileges  are  carefully  prepared  by 
the  attorneys  of  the  corporations.  They  are  never  drafted  by  the 
legal  representatives  of  the  state  or  the  city. 

"The  enormous  sums  of  money  contributed  for  purposes  of  politi- 
cal control  by  the  corporations  enjoying  municipal  supply  privi- 
leges, have  given  us  the  boss  system  in  its  present  form.  And  the 
boss  system,  which,  in  fact,  knows  no  distinction  of  political  party, 
is  fast  destroying  state  and  municipal  government  as  the  stedfast 
and  loyal  servitor,  defender  and  promoter  of  the  public  interest. 

"We  find  public  and  municipal  authority  and  prestige  weak  and 
low;  while  the  authority  and  prestige  of  private  corporations  en- 
gaged in  such  services  of  municipal  supply  as  public  illumination 
and  street  transit  are  enormously  active  and  strong.  No  such  rela- 
tive disparity  as  that  between  the  prestige  and  strength  of  munici- 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  223 

pal  government  and  the  prestige  and  strength  of  private  corporate 
influence,  exists  anywhere  else  in  the  world.  Direct  ownership  and 
operation  would  at  least  tend  to  build  up  the  municipal  govern- 
ment on  the  side  of  its  dignity  and  prestige. 

"The  views  that  one  encounters  in  the  United  States,  which  pre- 
sume to  settle  all  such  practical  questions  in  advance  by  the  recital 
of  dogmas  touching  the  nature  of  government,  would  be  deemed 
the  merest  silliness  by  practical  men  in  Europe.  Those  men  see 
no  possible  reason  why  a  modern  government,  which  is,  after  all, 
nothing  but  the  organization  of  the  people  for  their  own  benefit, 
should  not  render  the  public  any  service  which  upon  careful  inquiry 
it  may  be  agreed  that  the  government  can  render  with  actual  and 
permanent  advantage  to  itself  and  the  citizens." 

Two  Other  authorities  of  the  highest  character,  Professoi-s 
Bemis  and  Commons,  also  take  strong  ground  in  favor  of  the 
public  ownership  of  monopolies,  but  their  writings  have  been 
so  often  referred  to  in  this  chapter  that  a  special  citation  here 
seems  unnecessary. 

Hon.  Josiah  Quincy,  the  progressive  Mayor  of  Boston,  has 
established  municipal  baths,  a  municipal  paper,  and  a  muni- 
cipal printing  plant.  In  the  Arena  for  March,  1897,  p.  532, 
et  seq.y  he  expresses  himself  in  favor  of  public  ownership  and 
operation  of  electric  lighting  plants,  and  in  respect  to  transit 
suggests  the  advisability  of  city  ownership  of  the  tracks  at 
least.*  After  speaking  of  the  difficulties  in  the  way  by  reason 
of  the  franchises  granted  private  companies  and  the  large 
amounts  that  have  been  invested  in  their  securities,  he  says: 

"But  aside  from  the  question  of  dealing  fairly  with  vested  in- 
terests, there  seems  to  me  to  be  no  reason  why  an  American  city 
should  not  take  up  any  service  of  this  character  which  may  be 
recommended  bj^  business  and  financial  considerations.  There  is  1 
no  principle  that  stands  in  the  way,  for  instance,  of  the  municipal 
ownership  and  operation  of  an  electric  light  plant.  It  is  purely  a 
commercial  question  in  each  particular  case.  The  electric  lighting 
business  in  particular,  with  the  present  improved  dynamos  and  en- 
gines, is  one  w^hich  a  properly  organized  city  ought  to  be  able  to 
conduct  for  itself  with  some  economy  and  advantage.  • 

"The  argument  is  sometimes  made  that  new  fields  of  work  of 
this  character  cannot  safely  be  entered  upon  until  the  civil  service 


1  This  is  the  recommendation  of  the  Massachusetts  Special  Committee 
appointed  to  Investigate  the  street  railway  question.  (Report  Feb..  1898.) 
The  report  is  a  valuable  one  but  is  written  with  a  strong  bias  In  favor  of 
the  private  companies  as  against  complete  municipal  ownership  and  opera- 
tion, and  Is  marred  bv  statements  and  .omissions  lil£ely  to  mislead  the 
unwary  reader,  as  has  been  shown  by  Prof.  Bemis'  able  comments  on  the 
report.     (Municipal  Monopolies,  pp.  518-9,  531,  538,  557,  569,  639,  648-9.) 


224  THE  CITY  FOR  THE  PEOPLE. 

system  is  more  firmly  established  in  our  cities,  and  their  general 
standard  of  government  is  higher;  but  it  does  not  seem  to  me  that 
such  reasoning  rests  upon  a  sound  basis.     Any  extension  of  mu- 
nicipal functions  must  tend  to  arouse  a  public  interest  which  can- 
not but  assist  in  improving  administration  and  hastening  the  adop- 
tion of  a  strict  civil  service  system.     The  indifference  of  the  mote 
intelligent  and  well-to-do   citizens,   and   their  willingness  to   vote 
their  party  tickets  blindly,  while  exercising  little  or  no  influence 
over  party  nominations,  is  the  curse  of  many  of  our  cities.    Business 
I  men  of  large  and  unselfish  views  can  control  a  city  government  if 
[they  vnll  take  the  pains  to  do  so.    If  some  extension  of  municipal 
functions  in  the  directions  above  indicated  would  arouse  some  who 
are  now  apathetic  to  a  sense  of  their  vital  interest  in  sound  admin- 
r  istration,  it  would  do  a  good  work.    We  should  not,  therefore,  wait 
for  a  perfect  municipal  organization  before  we  undertake  any  de- 
sirable addition  to  the  services  now  rendered  directly  by  the  city, 
]  but  should  be  willing  to  trust  something  to  the  educating  and 
/  awakening  effect  of  imposing  further  responsibilities  upon  a  mu- 
'■  nicipal  government,  and  thus  bringing  it  into  a  new  and  close  re- 
lation with  the  citizens. 

"Only  the  business  considerations  in  favor  of  municipal  owner- 
ship have  been  hitherto  touched  upon,  but  the  broad  political  con- 
siderations are  even  stronger.  The  power  now  necessarily  wielded 
by  the  great  corporations  which  control  such  branches  of  public 
service  as  lighting  and  transportation  often  gives  them  too  great  an 
influence  over  municipal  governments.  It  must  be  admitted  that 
there  have  been  many  cases  in  our  American  cities  where  corpora- 
tions have  practically  dictated  the  action  of  city  councils.  Their 
influence  over  nominations  and  elections,  where  they  choose  to 
exert  it,  may  often  be  a  determining  one.  Even  a  corporation  hold- 
ing a  municipal  franchise  that  has  nothing  further  to  ask  of  the 
city,  and  only  desires  to  be  allowed  to  prosecute  its  business  with- 
out interference,  is  often  drawn  into  municipal  politics  by  the 
skilfully  planned  attacks  of  politicians  who  have  purposes  of  their 
own  in  view. 

"It  may  be  urged  that  the  influence  of  the  additional  city  em- 
ployes made  necessary  by  the  taking  over  of  branches  of  service 
now  performed  by  corporations  will  be  equally  great  and  equally 
selfish;  but  experience  proves  pretty  conclusively  that  this  is  not 
the  case.  It  has  frequently  been  demonstrated  that  any  influence 
which  may  be  exerted  by  municipal  employes  in  favor  of  a  party 
in-  power  is  likely  to  be  fully  offset  by  the  opposition  of  those  who 
have  been  disappointed  in  obtaining  public  office  or  employment. 
And  even  those  engaged  upon  city  work  are  sure  to  have  grievances, 
real  or  imaginary,  against  the  administration  in  power,  and  are 
never  solidly  united  in  its  favor.  Moreover,  with  the  extension  and 
firmer  establishment  of  the  civil  service  system,  public  employes 
are  coming  to  feel  fairly  secure  in  their  i)ositions,  regardless  of 
political  changes." 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  22o 

Hon.  James  D.  Phelan,  the  far-sighted  Major  of  San  Fran- 
r-isco,  writes  as  follows  in  the  Arena  for  June,  1897,  pp.  991-3: 

"The  street  car  service,  the  telephone,  telegraph,  garbage  disposal, 
water  and  artificial  light  are  owned  by  private  corporations.  As 
might  have  been  expected,  the  result  has  been  the  creation  of  pow- 
erful monopolies  and  the  imposition  of  high  rates  for  all  kinds  of 
service,  and  to  maintain  them  we  have,  as  a  corollary,  the  suspected 
corruption  of  public  bodies.  Legislators  and  supervisors,  and  even 
courts  are  exposed  to  the  machinations  of  these  corporations,  which, 
with  the  Southern  Pacific  Company,  the  overshadowing  railroad 
monopoly  of  the  state,  have  been  classified  by  the  people,  in  impo- 
tent vsrrath,  as  'the  associated  villainies.'  They  have  debauched  poli- 
tics and  have  established  a  governnaent  more  powerful  in  normal 
times  than  the  state  government  itself. 

"These  conditions  emphasize  the  desirability  of  the  public  own- 
ership of  utilities,  because,  while  better  results  could  no  doubt  be 
attained,  especially  under  a  reform  of  the  civil  service,  public  bodies 
would  not  be  exposed  to  the  insidious  inroads  of  corruption,  which 
carries  with  it  the  ultimate  destruction  of  representative  govern- 
ment. Where  the  commodities  supplied  are  a  public  and  universal 
necessity,  either  natural  or  made  so  by  the  demands  of  civilized 
life,  the  state,  in  granting  franchises,  practically  transfers  with 
them  the  power  of  taxation.     *    *    * 

"The  growth  and  development  of  the  business  of  a  city  depend 
very  largely  on  the  transportation  facilities  which  it  possesses 
within  its  limits  and  connecting  with  its  suburbs.  One  system  of 
street  railway,  for  instance,  costing  less  than  $9,000,000  to  build  and 
equip,  and  which  collects  over  $3,250,000  annually  in  fares,  has 
issued  stock  for  $18,750,000,  and  has  outstanding  bonds  for  $11,000,- 
000,  upon  all  of  which  it  pays  interest.  Its  earning  power  with 
five-cent  fares  should  not  be  the  measure  of  its  value.  Its  value 
for  the  purpose  of  estimating  reasonable  dividends  should  be  its 
actual  cost.  And,  on  this  theory,  such  a  system  should  supply  the 
citizens  of  San  Francisco  with  cheaper  service,  especially  during 
certain  hours  of  the  day,  when  the  working  classes  pay  the  toll 
permitted  to  be  collected  over  the  public  streets. 

"A  gas  company  whose  plant  can  be  duplicated  for  less  than 
$5,000,000  is  paying  6  per  cent,  dividends  on  $10,000,000,  and  a  water 
company,  whose  capitalization  of  stock  and  bonds  amounts  to  $23,- 
000,000,  and  whose  property,  held  for  the  legitimate  purpose  of  sup- 
plying the  city  with  water  and  not  for  the  exclusion  of  competitors 
or  for  speculation,  is  very  considerablj'  less,  is  paying  regular  rates 
of  interest  to  its  stockholders  and  bondholders  on  the  face  value  of 
its  securities.  I  closely  estimate  that  $7,000,000  is  annually  paid 
by  San  Francisco  for  her  water,  light  and  street  car  transportation, 
a  sum  $3,000,000  in  excess  of  the  amount  raised  last  year  by  the 
municipality  from  direct  taxation  for  the  support  of  the  locdl  gov- 
ernment. 

15 


22()  THE  CITY  FOK  THE  PEOPLE. 

"The  state  should  not  permit  private  fortunes  to  be  made  out  of 
the  necessities  of  the  people,  nor  should  city  councils  permit  the 
use  of  public  streets  to  become  the  means  of  oppression.  Unjust 
and  unnecessary  taxation  is  oppression.  The  questions  here  in- 
volved are  equally  momentous  with  those  which  stirred  to  action 
the  American  revolutionists,  and  John  Hampden  before  them.     *    * 

"Modern  American  cities,  careful  to  preserve  representative  in- 
stitutions in  their  purity,  should  be  prepared  ao  own  and  operate 
public  utilities.  That  is  the  ultimate  solution  of  this  disturbing 
question.  Failing-  of  this,  the  unequal  and  demoralizing  struggle 
between  the  weak  and  the  venal  on  the  one  side,  and  the  strong 
and  the  unscrupulous  on  the  other,  must  go  on.  In  practice  the 
power  of  regulation  is  the  opportunity  of  the  corrupt  and  the  cor- 
rupter, and  is  no  adequate  remedy." 

The  Hon.  Ilazen  S.  Pingree,  former  Mayor  of  Detroit,  and 
now  Governor  of  Michigan,  says: 

"I  was  elected  Mayor  by  the  most  influential  people  of  the  city. 
Directly  after  I  was  elected  I  discovered  that  the  railroads  were 
paying  less  than  their  lawful  taxes.  I  said  so,  and  the  railroad 
svpport  was  lost  to  me.  I  found  the  gas  companies  charging  exor- 
bitant rates,  and  I  said  so,  thus  losing  their  support.  I  found  bank- 
ers speculating  with  the  city  funds.  I  denounced  them,  and  they 
said  I  was  unsafe.  I  attacked  the  surface  railroads,  and  they 
called  me  an  anarchist.  I  was  four  times  elected  Mayor.  I  lost  a 
lot  of  old  friends,  but  I  was  elected  by  a  larger  majority  each  time. 
It  is  son-ething  to  be  proud  of  when  the  influential  classes  turn 
their  backs  on  me  and  the  common  people  stand  bj'  me..  I  have 
come  to  lean  on  the  common  people.  They  are  the  real  founda- 
tion of  good  government. 


In  May,  1897,  Mayor  Pingree  said: 

"I  am.  loth  to  surrender  my  belief  in  municipal  control  and  accept 
the  doctrine  of  municipal  ownership;  but  I  am  free  to  confess  that 
il  am  being  gradually  forced  into  the  position  of  an  advocate  of 
ownership.  The  methods  of  franchise  holders  compel  it,  as  also  the 
ignorance  and  venality  of  many  of  the  people's  representatives. 
But  mu<:h  of  this  venality,  I  may  say,  is  the  outgrowth  of  coi^jorate 
nietJiods. 

"I  have  advanced  so  far  as  to  advocate  ownership  of  street  rail- 
way tracks,  and  through  the  manipulation  of  lighting  companies 
I  was  compelled  to  force  through  the  municipal  ownership  of  a 
public  lighting  plant. 

"After  some  seven  years  of  struggle  against  extortionate  rates 
and  the  exploitation  of  watered  stock,  I  must  admit  that  my  hold 
on  municipal  control  is  feeble.  The  methods  of  franchise  holders 
are  forcing  the  expedient  of  municipal  ownership,  and  yet  they 
expend  large  sums  of  money  to  defend  themselves  against  muni- 
cipal ownership. 


PUBLIC  OW]!fERSHIP  OF  PUBLIC  UTILITIES.  227 

"Unless  there  is  a  great  chang-e  in  the  present  general  outlook, 
indeed,  as  I  am  constrained  by  conditions  to  say,  unless  the  leopard 
change  his  spots,  we  will  be  obliged  to  adopt  municipal  ownership 
as  a  defense  against  these  franchise  holders. 

In  NoveTDber,  1897,  he  says: 

"Good  municipal  government  is  an  impossibility  while  valuable 
franchises  are  to  be  had  and  can  be  obtained  by  corrupt  use  of 

money  in  bribing  public  servants. I  believe  the  time 

has  come  for  municipal  ownership  of  street  railway  lines,  water, 
gas,  electric  lighting,  telephone  and  other  necessary  public  conve- 
niences, which  by  their  nature  are  monopolies. 

In  1898  the  Governor  says  without  qualification: 

"The  remedy  is  ix  pubmc  owxership.  This  will  not  only  solve 
municipal  questions,  but  will  bring  railroads,  express  companies, 
street  lines,  telegraph  and  telephone  companies  and  other  agencies 
into  the  proper  subjection. 

The  five  mayors  above  mentioned,  with  Mayor  Harrison 
of  Chicago,  Mayor  Rose  of  Milwaukee,  Mayor  Truelsen  of 
Dnluth,  Mayor  Black  of  Columbus,  Mayor  Johnson  of 
Denver,  the  Mayors  of  Atlanta,  Cincinnati,  and  St.  Paul, 
Governor  Rogers  of  Washington,  ex-Governor  St.  John  of 
Kansas,  ex-Governor  Larrabee  of  Iowa,  and  other  leading 
mayors  and  governors  have  come  by  actual  experience  to  know 
that  adequate  regulation  of  corporate  monopolies  is  a  prac- 
tical impossibility,  and  that  public  ownership  is  the  only  solu- 
tion of  the  monopoly  problem.  The  fact  that  such  men  advo- 
cate public  ownership  of  lighting  plants,  transit  companies 
and  other  monopolies,  carries  the  matter  beyond  the  realms 
of  theory  and  puts  it  on  a  basis  of  business  sense  and  practical 
necessity.  They  are  men  of  affairs,  several  of  them  men  of 
large  wealth,  all  of  them  men  of  great  experience  in  govern- 
ment, and  all  of  them  high  in  public  esteem.  The  words  of 
such  men  spoken  for  the  public  good  have  untold  weight. 
From  Jefferson  to  Pingree  the  record  of  authority  for  public 
ownership  is  overwhelmingly  strong,  especially  when  we  re- 
member that  all  who  have  lifted  their  voices  against  it  are 
either  laissez-faire  theorists  clinging  to  the  worn  out  philoso- 
phy of  a  bygone  age,  or  aristocrats  at  heart  distrusting  the 
people  and  desiring  the  monopoly  of  privilege  by  a  feu,  or 


228  THE  CITY  FOK  THE  PEOPLE. 

business  men  whose  financial  interests  are  linked  with  private 
monopoly.     (See  Objections  below.) 

The  sentiment  of  the  general  public  is  growing  very  fast  in 
the  direction  of  public  ownership.^  This  is  shown,  by  the 
strong  movements  for  municipal  railways  in  Philadelphia,  St. 
Louis,  Chicago,  Detroit,  and  other  cities.  In  Chicago  Mayor- 
elect  Carter  H.  Harrison  and  each  opposing  candidate  stood 
on  a  platform  favoring  city  ownership  of  street  railways. 

At  the  Detroit  convention  of  the  League  of  American  Mu- 
nicipalities in  August,  1898,  when  1,500  members  of  the  city 
councils  and  other  branches  of  city  governments  and  many 
prominent  mayors  were  present  from  cities  in  all  parts  of  the 
country,  the  sentiment  was  overwhelmingly  in  favor  of  muni- 
cipal ownership  and  operation  of  public  utilities. 

In  December,  1898,  the  convention  of  the  ^Rational  Muni- 
'cipal  League,  received  most  favorably  a  municipal  program 
and  model  charter  presented  by  a  committee  consisting  of  Dr. 
Albert  Shaw,  Professor  Goodnow  and  Horace  E.  Deming  of 
New  York,  and  Hon.  Clinton  Rogers  Woodruff,  Charles  Rich- 
ardson and  Professor  L.  S.  Rowe  of  Philadelphia,  and  strongly 
favorable  to  public  ownership.  Some  of  the  provisions  of  the 
model  charter  are  as  follows: 

Cities  "may  acquire  or  construct  and  may  also  operate  on  their 


^  In  Oct.,  1895,  a  committee  of  the  Boston  Common  Council  reported 
unanimously  In  favor  of  city  ownership  of  an  electric  light  plant.  The 
committee  visited  ten  cities  east  and  west.  In  Springfield,  111.,  they  found 
the  situation  already  stated  in  this  chapter.  Their  study  of  Chicago  con- 
vinced them  that  when  the  city  puts  its  plants  into  full  operation  the  cost 
per  arc  will  be  reduced  to  $60,  even  with  8-hour  labor  at  good  pay.  They 
discovered  that  Bloomington,  111.,  saved  enough  In  five  years  by  public 
ownership  to  pay  for  its  plant,  etc.,  etc.  They  tested  the  data  cited  in 
the  Arena  articles  and  finding  them  correct  endorsed  my  conclusions.  They 
Bummed  up  as  follows: 

"The  actual  cost  of  construction  will  not  exceed  $168  per  arc  for  an 
overhead  system  of  3,000  arcs  in  Boston,  and  your  committee  are  positive 
that  they  are  not  In  error  in  making  this  statement.  The  additional  cost 
of  real  estate  will  of  course  depend  upon  the  location,  but  your  committee 
believe  that  such  locations  can  be  secured  as  to  bring  total  cost  of  plant, 
including  land  and  buildings,  not  over  $250  per  arc. 

"Assuming  that  an  estimate  of  $250  per  arc  Is  correct,  the  cost  to  the 
£,Z>J?^-^^  3,000-arc  plant  (600  lights  In  excess  ot  present  needs)  would  be 
$750,000.  The  Interest  on  the  investment,  a  fair  charge  for  depreciation,  and 
well-paid  labor,  would  in  the  opinion  of  your  committee,  make  the  total  cos- 

2?,^,*l^^^''  *'^  P^^  ^^^'  ^°^  tJiere  would  be  a  net  saving  to  the  city  of  at  least 
$125,000  per  year. 

"The  City  of  Boston  should  not  pay  more  than  $75  per  arc  per  year  for 
Its  electric  lighting,  pending  the  establishment  of  a  municipal  electrlc-lIght 

In  reply  to  a  criticism  on  the  report  the  committee  strongly  reaffirmed 
their  conclusions  and  stated  that  since  1882  Boston  had  paid  the  electric 
l'J5S.*^^™P"?'^^  $2,125,000  for  services  which  could  have  been  produced  for 
$800,000  under  public  ownership.  The  report  was  adopted  by  the  Common 
Council  by  a  unanimous  vot«',  but  It  was  killed  by  neglect  when  It  got  to  the 
Board  of  Aldermen. 


PUBLIC  OWNEKSHIP  OF  PUBLIC  UTILITIES.  229 

own  account  *  *  *  railroads  or  other  means  of  transit  or  trans 
portation  and  methods  for  the  production  or  transmission  of  heat, 
light,  electricity,  or  other  power  in  any  of  their  forms,  by  pipes, 
wires,  or  other  means." 

A  city  may  issue  bonds  without  debt  limit  restrictions,  if  their 
bonds  are  for  a  revenue  producing  business. 

A  two-thirds  vote  of  councils  and  a  majority  vote  of  the  citizens 
on  a  referendum  shall  be  sufficient  for  the  issue  of  bonds  and  the 
assumption  of  any  undertaking  from  which  the  city  will  derive 
a  revenue,  but  the  alienation  of  city  property  shall  not  take  place 
without  a  four-fifths  vote  of  the  councils  and  such  referenduna 
vote  as  the  people  may  provide  for  in  their  charter. 

Municipal  franchises  are  to  be  limited  to  21  years. 

Public  audit  of  the  accounts  of  companies  receiving  franchises 
is  to  be  established. 

Cities  of  more  than  25,000  inhabitants  to  have  the  fight  to  make 
their  own  charters  and  provide  for  municipal  ownership  and 
operation  of  public  utilities  as  they  see  fit. 


The  recent  Social  and  Political  Conference  at  Buffalo,  by 
practically  unanimous  vote  (only  1  dissent),  adopted  a  resolu- 
tion for  the  "Public  ownership  of  public  utilities." 

We  have  already  spoken  of  the  resolution  adopted  by  the 
American  Federation  of  Labor  in  1896.    (See  §  XX.) 

Another  symptom-  of  the  rapid  growth  of  public  sentiment 
in  this  direction  is  the  great  development  of  legislation  favor- 
able to  public  ownership.  In  1890  no  state  in  the  Union  had 
any  general  law  authorizing  cities  and  towns  to  own  and  oper- 
ate lighting  plants  or  street  railways,  now  one  state  has  put 
such  a  lighting  provision  into  its  constitution  and  31  other 
states  have  general  laws  of  this  kind  (Tennessee  and  Massa- 
chusetts being  the  leaders  in  1891),  and  5  states  have  author- 
ized municipal  ownership  and  operation  of  street  railways. 
See  Chap.  Ill  for  these  and  other  similar  indications,  and  for 
the  new  charter  of  San  Francisco,  which  announces  a  definite 
policy  of  bringing  all  public  utilities  under  public  ownership 
and  operation. 

One  of  the  strongest  indications  of  the  trend  of  public  opin- 
ion is  to  be  found  in  the  concerted  movement  of  street  rail- 
way interests  in  various  cities  from  one  end  of  the  country  to 
the  other  to  obtain  50  year  franchises.  The  companies  see 
the  rising  tide  of  sentiment  in  favor  of  municipal  ownership, 


230  THE  CITY  FOK  THE  PEOPLE. 

I  and  in  the  last  few  years  they  have  stopped  at  nothing,  how- 
j  ever  dishonest,  that  promised  a  continuation  of  the  enormous 
I  powers  and  profits  of  their  existing  franchises.^ 

Perhaps  the  most  definite  and  striking  of  all  the  evidences 
of  the  movement  of  public  sentiment  on  this  question  thru  the 
power  of  discussion  is  contained  in  the  following  statement 
adopted  for  issue  by  referendum  vote  of  the  N.  P.  O.  League. 

THE  RAILROADS  OF  SWITZEKLANEl 
BY 
Pbofessoe  Frank  Pabsons. 

Rapid  Growth  and  Pinal  Triumph  of  the  Sentiment  in  Favor  of  Public 

Ownership. 

On  the  6th  of  December,  1891,  the  question  of  national  purchase 
of  the  Swiss  Central  Railroad  was  submitted  to  a  referendum  vote 
with  the  following  result: 

In  favor  of  such  purchase 130,500 

Opposed 290,000 

Majority  against  purchase 159,500 

On  the  20th  of  February,  1898,  the  question  of  national  owner- 
ship of  railroads  was  again  submitted,  a  referendum  being  taken 
on  the  government  purchase  of  the  five  main  railroad  lines  of 
Switzerland  (the  Jura  Simplon,  Swiss  Northeast,  Swiss  Central, 
United  Swiss  and  Gotthard.)  The  question  had  been  long  and 
bitterly  discussed.  The  arguments  pro  and  con  had  been  thor- 
oughly considered.    This  second  vote  was  as  follows: 

In  favor  of  national  purchase 384,382 

Opposed    176,511 

Majority  for  public  ownership 207,871 

Consul  General  James  F.  Du  Bois,  in  the  report'  from  which 
these  facts  are  taken,  makes  some  interesting  comments.  "It  will 
be  seen,"  he  says,  "that  there  has  been,  since  1891,  a  great  change 
in  the  minds  of  the  people  of  Switzerland  concerning  the  Govern- 
ment ownership  of  railroads  and  this  change  has  been  brought 
about  by  a  thoro  discussion  of  the  subject  in  the  press  and 
on  the  platform.  Never  before  in  the  history  of  the  Republic  has 
such  a  bitter  contest  been  waged,  and  never  before  has  the  Govern- 
ment received  such  a  large  majority." 


pnt'®f«r*M^o^*'i"£S'^°'^^^  °^  ^^-  ^^^^^^  Shaw  In  the  New  York  "Independ- 
polies.  pp    6^5.      '  ^  ^^^^  quotation  of  the  same  in  Municipal  Mono- 

»  St.  Gall,  Feb.  2l8t,  1898,  U.  S.  Consular  Reports,  Vol.  56,  p.  584. 


PUBLIC  OWNEESHIP  OF  PUBLIC  UTILITIES.  231 

'"The  total  cost  of  construction  and  equipment  of  the  fire  main 
lines  (above  mentioned)  is  estimated  at  $190,998,000.-  The  total 
length  is  1700  miles,  and  the  Government  it  is  estimated  will  have 
to  pay  for  these  roads  about  $200,000,000.  The  total  receipts  in  1897 
were  $20,722,600;  an  average  of  5  per  cent,  dividends  has  been  de- 
clared during  the  past  five  years.  The  number  of  persons  employed 
is  about  25,000,"  or  nearly  1  per  cent,  of  the  population. 

"The  election  was  keld  yesterday,  Sunday,  February  20th,  and  by 
8.30  in  the  evening  the  general  result  was  known  in  every  town  and 
city  in  the  Republic  The  news  was  given  to  the  people  by  the 
government  absolutely  free  of  charge,  which  demonstrated  the  fact 
that  Switzerland  has  one  of  the  finest  telephone  systems  in  the 
world.  It  is  owned  by  the  Government  and  operated  in  the  interest 
of  all  the  people.'  *  *  *  The  result  of  the  election  is  being  cele- 
brated with  great  enthusiasm  thruout  the  country." 

Government  ownership  in  Switzerland  is  public  ownership  in  fact 
as  well  as  in  name,  for  the  people  own  and  control  their  goveru- 
ment,  through  the  initiative  and  referendum. 


SmiMARY  Statement. 

Gathering  up  the  most  vital  elements  of  the  preceding  dis- 
cussion we  obtain  the  folloAving  balance  sheet  in  the  account 
of  The  People  v.  The  Monopolies. 

The  companies  aim  at  dividends  not       Tlie    public   aims   at   service,   justice 
service,    at     financial     success     not  and  humanity  first  and  profit  after- 

justice,  at  money  not  manhood.  ward. 

Private  monopoly  has  some  advauta-       Public  ownership  of  monopoly  keeps 
ges  and  many  disadvantages.     The  all     the    advantages     of     internal 

problem  is  to  keep  the  advantages  union,   and   eliminates    the    disad- 

and   get  rid  of  the  disadvantages.  vantages   of    private    monopoly    by 

The   advantages   arise   from    union  making  the  owners  and  the  public 

and    the    elimination    of    internal  one  and  the  same,  thereby  remov- 

confllct  that  characterize  all  mono-  ing    the     antagonism     of    Interest 

poly.  The  disadvantages  arise  from  which   Is   the  vital    cause    of    the 

the  antagonism  of  Interest  between  evils   of   private    monopoly, 

the    owners    of    a    powerful    mono-       The   referendum  and  a  civil   service 
poly  and  the  public.     The  advant-  managed    in    the    public    interest, 

ages  belong  to  monopoly,   the  dis-         form  essential  elements  in  any  re- 
advantages   to   private   monopoly.  liable  plan  for  a  real  public  owner- 
ship, for  without  them  we  merely 
Competition  has  failed  to  solve  the  go  from  the  private  ownership  of 
problem.  a  group  of  stockholders  to  the  pri- 
vate ownership  of  a  group  of  office- 
holders. 
Regulation  tho  a  palliative  has  also       Public     ownership      so      understood 
failed  as  a  solvent,  and   must  fail  keeps   the     benefits    of    monopoly, 
because  It  cannot  reach   the  anta-          adds  new  benefits  of  Its  own,   re- 
gonism   of  Interest    which    is    the  moves   the   evils   of   private   mono- 
root  of  the  difficulty.                                    poly  without  introducing  new  evils 

or  difficulties  at  all  comparable 
with  those  It  removes,  wherefore 
public  ownership  completely  solves 
the  problem. 


'  The  ordlnarv  charges  are  S8  a  year  plus  1  cent  a  call,  and  the  average 
total  payment  for  the  ordinary  local  service  Is  under  $18  a  year  for  each 
subscriber  thruout  the  country. 


ii32 


THE  CITY  FOE  THE  PEOPLE, 


Private  Monopolp  Tends  to 

Excessive  rates. 

Enormous  profits  for  stockholaers. 

High  cost  In 

liitcrosr. 

Dividends. 

Lawyers  fees. 

Lobby  expenses. 

Corruptiou   funds. 

Litigation  expenses. 

Advertising  and  solicitation  wliere 
the  monopoly  Is  not  absolute. 

Insurance. 

Salaries. 

Regulation. 

Legislation. 

State  and  municipal  care  of  crimi- 
nal    and     defective     classes     in- 
creased    by     the     congestion     of 
wealth  due  to  private  monopoly. 
And  wastes  by 

Inferior  efliciency  of  ill-treated 
labor. 

Strikes  and  lockouts. 

Absence  of  complete  co-ordination 
which  cannot  be  allowed  in  the 
case  of  private  monopolies  be- 
cause of  the  dangers  of  large 
combinations  in  private   hands. 

Antagonism  between  owners  an"a 
the  public. 

Congestion  of  wealth,   devitalizing 

and  demoralizing  two  considerable 
portions  of  the  community. 


Facilities  only  where  the  business 
will  "pay." 

Small  traffic  because  of  high  charges, 
inadequate  facilities,  and  the  rela- 
tive dislike  of  the  people  to  patron- 
ize a  private  corporation. 

Discrimination  In  rates,  service,  In- 
vestment and  ownership  (com- 
panies have  been  known  to  refuse 
to  sell  stock  to  ordinary  persons 
because  they  desired  all  their  stock 
to  be  in  the  hands  of  "influential" 
persons.) 

Disregard  of  public  safety. 

Poor  service. 

False   accounting. 

Watered  stock  and  over-capltallza- 
tlon. 

Speculation  and  gambling. 

Fraud  and  corruption. 

Defiance  of  law. 

Discouragement  of  good  men  because 
of  the  filthy  condition  of  politics, 
largely  due  to  the  influence  of  pri- 
vate   monopoly. 

Civic  Inertia,  disgust,  despair  and 
neglect. 

Destruction  of  good   citizenship. 

OflSelal  demoralization. 

Annihilation   of   honest   government. 

Unfair  treatment  of  employees. 

Strikes  and   lockouts. 

Social  cleavage. 

Congestion  of  wealth,  power  and 
beneflts. 

Assets  for  the  companies. 

Wealth   for  the   few. 

Millionaires  and  tramps. 

Beauty  for  a  few.  Ugly  buildings, 
ugly  streets,  ugly  surroundings  for 
the  mass. 

Selfishness  and  hardened  conscience 

Debasement  of  human  nature. 


Public  Ownership  Tends  to 

Moderate  rates. 

Service   at   cost   or    profits     for    the 

public  treasury. 
Low  cost,  or  economy  in 

Interest. 

Dividends. 

Lawyers  fees. 

Lobby  expenses. 

Corruption  funds. 

Litigation. 

Advertising. 

Insurance. 

Salaries. 

Expenses  of  regulation  and  investi- 
gation. 

Expenses  of  legislation  relating  to 
monopolies. 

Expenses  .attendant  upon  defective 
classes. 

And   savings  by 

Superior  efficiency  of  well-tested 
labor. 

Absence  of  strikes  and  lockouts. 

Co-ordination   of  industries. 

Increased  Interest  of  the  people. 

Better  diffusion  of  wealth  securing 
a  larger  total  of  education,  in- 
telligence and  energy  in  the 
community. 

Elimination  of  antagonism  and 
conflict. 

Putting  proflts  in  the  public  treas- 
ury. 
Public  ownership,   moreover,   can  l)e 

secured  without  a  dollar  of  public 

debt    or   taxation.     (See    Method.) 
Enlargement  and  extension  of  facili- 
ties. 
Increase  of  business. 


Impartiality    In    the    treatment    of 

customers. 


Safety  for  public  and  employees. 

Better   service. 

Honest  accounts. 

No  watered  stock  and  fair  capitali- 
zation. 

Diminished    speculation    and    gamb- 
ling. 

Lessened  fraud  and  corruption. 

Obedience  to  law. 

Increased    Inducement    to    good    and 
able  men  to  take  part  In  politics. 

Awakened   interest   in   public   affairs 

among  the  people  as  a  whole. 
Better   citizenship. 
Civil   service  reform. 
Better  government. 
Better  treatment  of  labor. 
Abolition  of  strikes  and  lockouts. 
Social   strength. 
Diffusion   of   benefit. 

Assets  for  the  people. 
Wealth  for  all. 
General  competence. 
iEsthetic  development. 


Moral   improvement. 
Manhood. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  233 

Too  much   liberty   for  a   few;   none  Liberty  for  all. 
for  the  many. 

Special  privileges  for  some.  Equal  rights  for  all. 

Aristocracy.    Denial    of    Democracy  Democracy    and   self-government 
and   self-government. 

Antagonism.  Harmony. 

Conflict.  Co-operation. 

Non  -  progressiveness,      economically  Economic   and   social   advancement 
and  socially. 

Private     monopoly     means     taxation  Public   ownership    leaves   the   power 

without     representation,     and     for  of  taxation  (for  public  purposes)  in 

private  purposes.  the    people    and    their    representa- 
tives, where  it  belongs. 

Private  monopoly  is  contrary  to  the  Public   ownership     and    co-operation 

principles   underlying   free   govern-  in  all  its  forms  are  in  accord  with 

ment;    it   is   undemocratic,    anti-re-  the  fundamental  principles  of  free 

publican,   and   anti-Christian;   it   Is  government,    and    with    conscience, 

a  violation  of  the  settled  principles  Christianity   and   the   laws  of  love 

of  justice,  and  of  the  common  law  and  brotherhood, 
and  a   breach  of  the  supreme   law 
of   love   and   brotherhood. 

Experience  serves  but  to  emphasize  Experience  proves  its  beneficent  ef- 

its   evils    and   prove   the   hopeless-  fects. 

ness    of   efforts    at     regulation     or  Analogy  favors  Its  extension, 

prohibition.  Its  growth  is  phenomenal. 

The  drift  of  the  age  is  In  Its  direc- 
tion. 
The  current  of  history  sets  that  way. 

Its  evils  increase  with  the  ever  ac-  The  trend  of  thought,  the  weight  of 

celerating    aggregation    of    capital,  authority,   and    the    movement    of 

and  the  concentration  of  power.  events,  are  all  In  Its  favor. 

The  question  lies  between 

the    despotic    dollar    on    one       thought,    manhood,    democracy, 
side,  and  brotherhood    and    progress    on 

the  other. 
Which  will  you  help  to  toinf 

Objectors  axd  Objections.^ 

1.  The  leading  objection  to  public  ownership  is  the  "danger 
of  increased  patronage  and  the  spoils  sy stein,  whereby  the 
public  ownership  of  monopolies  becomes  a  source  of  corruption 
in  politics."  It  is  true  that  the  spoils  system  in  municipal 
business  is  a  serious  evil,  but  the  remedy  is  not  to  close  the  door 
to  public  ownership  but  to  open  it  wide.  The  spoils  system 
itself  is  nothing  but  private  ownership  of  the  government; 
the  treating  of  public  office  as  private  property.  Establish 
full  public  ownership  of  the  government  as  well  as  of  other 
municipal  monopolies  and  there  will  be  no  danger  from  patron- 
age. And  the  best  of  it  is  that  public  ownership  of  indus- 
trial monopolies  tends  to  force  governmental  reform  and  so 
eliminate  the  only  serious  objection  made  to  it.  (See  Section 
XYIL)  Even  if  this  were  not  true,  however,  the  political 
evils  of  the  patronage  are  utterly  insignificant  compared  to  the 
political  evils  produced  by  the  private  monopolies  (Sections 
8,  9,  XIV),  so  that  at  the  very  worst  public  ownership  would 

^  See  Appendix  II.   M. 


234  THE  CITY  FOK  THE  PEOPLE. 

result  in  less  corruption  than  private  ownership  in  the  case  of 
monopolies.  The  corporations  buy  up  our  councils  and  cor- 
rupt our  legislators,  and  when  we  demand  the  abolition  of 
these  very  corporations  that  produce  the  difficulty,  they  say, 
"You'll  have  a  terrible  time  if  you  get  rid  of  us,  see  how  rotten 
your  government  is."  Of  course  you  see  how  greatly  the  de- 
struction of  the  corruptors  will  increase  corruption.  Don't 
take  away  the  evil  companions  who  are  undermining  the 
morals  of  your  boy,  making  him  wild  and  dissipated  and  more 
anxious  about  money  than  conscience  and  the  public  good, — 
you  will  stand  no  better  chance  to  correct  his  habits  when  they 
are  gone,  he'll  go  to  the  dogs  all  the  more  when  the  strongest 
influence  that  makes  him  go  to  the  dogs  is  removed. 

As  Mr.  Baker  says  it  is  easier  to  stop  thieving  and  rascality  by 
a  common  council  than  by  a  water,  gas,  or  street  railway  corpora- 
tion. The  people  are  roused  more  than  by  the  hidden  private  fraud 
and  the  councilmen  are  more  readily  turned  out  or  controlled  than 
the  owners  of  the  private  corporation. 

Experience  shows  that,  as  a  rule,  no  political  difficulties  have 
arisen  in  the  administration  of  imblic  plants  for  the  supply  of 
water,  gas,  electric  light,  etc.^  Probably  the  most  thoro  study 
under  this  head  has  been  made  by  Prof.  Bemis  in  his  investiga- 
tions of  municipal  gas  works.  In  1891  he  found  great  steadiness 
in  the  employment  of  superintendents  and  engineers.  In  Richmond 
"the  same  man  had  been  superintendent  since  1886,  and  before 
that  was  assistant  superintendent  from  1870  to  1886,  and  he  came 
to  the  works  in  1865."  "Bellefontaine  is  free  from  the  spoils  system 
in  her  gas  department."  The  same  man  "has  been  city  engineer  and 
superintendent  of  the  gas  works  in  Danville  for  16  years.  Superin- 
tendent T.  J.  Williams  has  been  in  charge  in  Charlottesville  since 
1855.  Hamilton  starts  out  with  a  similar  laudable  purpose  of  keep- 
ing the  gas  department  out  of  politics.  The  present  trustees  and 
superintendent  are  Democrats,  and  the  assistant  superintendent 
and  the  foreman  of  the  service  gang  are  Republicans."^ 

Summing  up  the  professor  says.  Municipal  Gas,  p.  82: 

"We  therefore  find  that  six  of  the  nine  cities  are  entirely  free 
from  political  influence,  and  that  two  others,  Philadelphia  and 
Richmond  can  only  be  charged  with  employing  a  few  more  men 
than  necesary,  for  the  sake,  possibly,  of  giving  employment  to 
political  friends,  though  this  is  charged,  not  proven.    In  Wheeling 


^  See  chapters  on  Water,  Electric  Light  and  Gas,  In   "Municipal  Mono- 
polies," especially  pp.  610,  612,  619-20. 
'  Municipal  Gas,  pp.  77,  81. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  235 

we  find  conflicting  accounts,  but  do  know  that  the  financial  results 
are  fine,  and  that  whatever  connection  the  works  maj'  have  with 
politics  does  not  produce  much  injury,  and  is  diminishing." 

And  on  p.  136: 

"The  occasional  change  of  some  of  the  employees  of  gas  works 
in  public  hands  for  political  reasons,  an  evil  which  does  not  exist 
at  all  in  many  public  gas  works  and  which  is  decreasing,  as  our 
investigation  proves,  in  all  the  others,  is  nothing  in  comparison 
with  the  corruption  now  existing  in  a  large  proportion  of  the  cities 
where  gas  works  are  in  private  hands." 

In  1898  Prof.  Bemis  has  again  investigated  the  public  gas  works. 
After  speaking  in  detail  of  Richmond,  Fredericksburg,  Alexandria, 
Charlottesville  and  Danville,  all  the  Virginia  plants,  he  says:  "In 
none  of  these  Virginia  cities  has  the  spoils  system  had  any  apparent 
inlluence.'"  On  p.  619  he  says  that  "political  influences  do  not 
appear  to  enter  into  the  management  of  either  of  the  Massachu- 
setts (public)  plants."  He  found  the  common  labor  subject  to 
change  for  political  reasons  in  Wheeling,  but  in  spite  of  this  "the 
results  on  the  whole  seem  to  fully  justify  the  almost  unanimous 
belief  in  public  ownership  and  operation  which  has  always  appeared 
to  exist  there  and  in  other  cities  owning  their  gas  plants"  (p.  613). 
Summing  up  again  on  pp.  619-20,  the  Professor  says: 

"The  Influence  of  the  spoils  system  In  some  cities  does  not  appear  to  have 
anything  like  the  demoralizing  influence  on  the  city  government  that  is  pro- 
duced by  the  efforts  of  private  companies  elsewhere  to  secure  valuable  fran- 
chises." 

The  American  Federation  of  Labor  puts  the  vvhole  matter  in  a 
nut  shell  in  the  resolution,  part  of  which  has  been  already  cited: 

"Whereas,  The  influences  of  corporations  holding  or  seeking  to 
obtain  possession  of  public  franchises  are  among  the  most  potent 
influences  antagonistic  to  reformative  measures,  and  the  most 
active  cause  of  corruption  in  politics  and  of  mismanagement  and 
extravagance   in  public   administration;    therefore,   be   it 

"Resolved,  That  the  sixteenth  annual  convention  of  ^he  American 
Federation  of  Labor  urges  upon  all  the  members  of  affiliated  bodies 
that  they  use  every  possible  effort  to  assist  in  the  substitution  in 
all  public  utilities — municipal,  state  and  national — that  are  in  the 
nature  of  monopolies,  of  public  ownership  for  corporate  and  private 
control." 

2.  ^^ Paternalism,^^  says  a  second  objector,  "public  owner- 
sliip  is  paternalism."  That  is  almost  correct.  Ihere  is  only  a 
slight  mistake  in  the  first  syllable.  Public  ownership  is  not 
pateimalism  but  /ratemalism.  When  somebody  else  manages 
the  business  for  you,  that  is  paternalism;  but  when  you  get  to- 
gether and  run  the  thing  yourselves  or  by  agents  under  your 


1  Municipal  Monopolies,  p.  612. 


236  THE  CITY  FOK  THE  PEOPLE. 

control  and  direction,  then  it  is  fraternalism.  A  street  railway 
service  owned  and  managed  by  a  private  corporation  is  pater- 
nalism so  far  as  the  city  is  concerned.  But  a  street  railway 
service  owned  and  managed  by  che  city  is  fraternalism. 

3.  "Socialism,"  says  a  gentleman  in  a  silk  hat  and  a  gold 
headed  cane,  who  doesn't  know  what  socialism  is,  but  never- 
theless speaks  of  it  in  tones  full  of  calamity,  or  the  prophecy 
of  calamity,  more  dire  than  any  recorded  outside  of  Milton's 
Paradise  Lost  or  Dante's  Inferno.     "Public  owneirship  of  mo- 
nopolies is  socialism."    If  so  the  post  office  is  socialism,  and  the 
public  roads  and  parks,  hospitals,  cemeteries,  water  works,  etc. 
The  truth  is,  however,  that  the  public  ownership  of  monopolies 
is  no  more  socialism,  than  the  Mississippi  Valley  is  the  conti- 
nent, or  the  eating  a  piece  of  bread  is  the  swallowing  of  a  whole 
loaf.  Socialism  means  "the  common  ownership  of  the  means  of 
production  and  distribution."     The  common  ownership   of 
water,  gas  and  electric  works,  street  railways,  telephones  and 
other  monopolies  is  no  more  socialism  than  Chestnut  street  is 
Philadelphia.   "Well,  at  any  rate,  the  public  ownership  of  mo- 
nopolies is  socialistic,  it  is  in  the  direction  of  socialism."    Post 
office,  public  roads,  public  schools,  etc.,  ditto.     The  public 
o%vnership  of  monopolies  may  be  socialistic,  or  may  not  be,  ac- 
cording to  intent.     A  journey  from  New  York  to  Chicago 
may  be  San  Franciscoistic  if  the  traveller  intends  to  go  the  rest- 
of  the  way,  but  not  if  he  intends  to  stop  in  Chicago.     "But 
suppose  all  sorts  of  business  become  monopolies  as  they  bid 
fair  to  do  with  the  growth  of  trusts,  then  surely  the  public 
ownership  of  monopolies  will  mean  socialism."    Any  business 
which  does  become  a  monopoly  and  continues  such  after  the 
monopolies  of  land  and  transportation  have  become  public, 
and  which  relates  not  to  a  mere  luxury,  but  to  a  public  utility, 
and  which  manifests  the  evil  tendencies  found  to  accompany 
existing  monopolies,  should  be  taken  by  the  public  and  man- 
aged in  the  public  interest,  whatever  name  may  be  applied  to 
such  taking  by  those  who  fling  scare-words  instead  of  dis- 
cussing the  case  on  its  merits. 

t.  "Liberty  will  be  less,"  says  one  who  calls  himself  an 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  237 

^^Individualist."  Very  likely  those  who  now  own  the  monop- 
olies will  be  deprived  of  some  of  the  "liberty"  they  now  pos- 
sess to  tax  the  people,  issne  watered  stock,  corrupt  our  legis- 
lators, etc.  But  the  workers  and  the  mass  of  the  people  gen- 
erally will  have  more  liberty  than  now,  for  they  Avill  have  the 
liberty  of  managing  these  vast  business  interests  for  the  public 
good,  and  of  keeping  their  money  till  they  get  an  equivalent 
for  it. 

There  is  no  quarrel  between  true  individualism  and  the  co- 
operative philosophy.  The  savage  individualist  of  the  prime- 
val forest  has  of  course  no  use  for  government  or  co-operation 
of  any  sort.  But  the  developed  individualist  of  a  highly 
ci\"ilized  society  is  naturally  co-operative  to  a  large  degree 
in  his  conduct  and  thought,  no  matter  what  sort  of  nonsense 
he  may  talk.  Primitive  individualism  expresses  itself  in  ab- 
solute independence;  ennobled  individualism  just  as  naturally 
expresses  itself  in  co-operation  and  mutual  help;  and  the 
noblest  individualism  would  necessarily  express  itself  in  com- 
plete mutualism  or  universal  co-operation.  Men  whose  hearts 
were  filled  with  brother  love  could  not  be  private  monopolists. 
Brotherhood  would  spontaneously  banish  private  monopoly. 

We  are  all  individualists  whether  our  individualism  be  of 
the  antagonistic  or  the  co-operative  order.  And  even  the  most 
strenuous  defender  of  the  antagonistic  individualistic  idea  lives 
in  a  net  work  of  the  public  co-operations  his  philosophy  con- 
demns.   As  Sidney  Webb  says: 

"The  Individualist  City  Councillor  will  walk  along  the 
municipal  pavement,  lit  by  municipal  gas  and  cleaned  by  mu- 
nicipal brooms,  with  municipal  water,  and  seeing  by  the  mu- 
nicipal clock  in  the  municipal  market,  that  he  is  too  early  to 
meet  his  children  coming  from  the  municipal  school,  hard  by 
the  county  lunatic  asylum  and  municipal  hospital,  will  use 
the  national  telegraph  system  to  tell  them  not  to  walk  through 
the  municipal  park,  but  to  come  by  the  municipal  tramway, 
to  meet  him  in  the  municipal  reading  room,  by  the  municipal 
art  gallery,  museum  and  library,  where  he  intends  to  consult 
some  of  the  national  publications,  -in  order  to  prepare  his  next 
speach  in  the  municipal  town  hall,  in  favor  of  the  municipal- 


238  THE  CITY  FOE  THE  PEOPLE. 

ization  of  gas  and  the  increase  of  the  government  control  over 
the  telephone  system." 

How  far  this  has  gone  may  be  seen  from  the  fact  that  Yroo- 
man's  "Public  Ownership"  gives  a  classified  list  of  337  social-' 
ized  businesses,  enterprises,  and  institutions,  together  with  225 
businesses,  enterprises,  institutions  and  events,  controlled  in 
some  degree  by  Governments,  making  562  types  of  human, 
effort  that  the  people  (of  various  countries)  have  already  re- 
claimed from  absolute  individual  management. 

5.  "/if  is  not  the  government'' s  business  to  own  and  operate 
water  works,  gas  plants,  street  railways  and  telephones.  It 
should  confine  itself  to  keeping  order,"  says  a  devotee  of  the 
Spencerian  theory  of  government.  It  seems  to  me  it  is  the 
government's  business  to  do  anything  it  can  do  for  the  public 
good  that  the  people  want  it  to  do.  The  government  is  simply 
the  hand  of  the  people,  to  accomplish  any  purpose  the  people 
command  it  to.  Herbert  Spencer's  policeman  theory  of  gov- 
ernment would  abolish  the  public  post,  the  public  schools  and 
libraries,  the  public  roads  and  bridges,  and  the  public  water 
works  and  fire  depaitments  as  well  as  the  public  railways, 
and  Spencer  accepts  these  consequences  and  affirms  that  all 
these  things  should  be  left  to  private  effort.  Great  as  he  is 
in  many  ways,  I  think  he  has  failed  to  catch  the  truth  that 
service  is  as  true  a  function  of  government  as  restraint} 

6.  "Vested  interests  must  be  respected,"  says  a  stockholder. 
"It  is  not  fair  to  take  away  my  opportunity  to  make  a  living." 
Your  opportunity  to  have  some  one  else  make  a  living  for  you, 
would  be  more  accurate,  would  it  not?  But  we  will  waive 
that  point.  All  private  interests  have  to  yield  to  the  public 
good.  Salus  populi  suprema  lex.  "When  the  public  needs  a 
man,  it  may  take  even  his  life;  shall  it  have  less  power  over 
his  property?  There  is  nothing  sacred  about  "vested  inter- 
ests." We  \vill  pay  you  the  value  of  the  property  that  is 
rightfully  yours  and  you  can  invest  the  proceeds  and  still  re- 

ifiOT  ®f.f  ^K^t  "S""."*^*'®"!:  *''  Government"  in  The  IndiistriaUfit,  Jan.  to  June, 
f«?-n  MBT.«f,  J.'^V^  ^^^"^I^  ^i^*^  fallacy  of  SponteVs  theory  of  government 
rro.n  his  own  principles  and  admissions. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  239 

tain  your  "vested  interest,"  merely  changing  its  form  or  loca- 
tion for  the  benefit  of  the  community. 

Private  monoi>olistic  business  has  rarely,  if  ever,  in  ail  its 
history,  left  one  stone  unturned  in  its  determined  effort  to 
ruin  or  drive  out  of  business  all  others  in  the  same  field.  And 
in  many  cases  it  has  paid  itself  over  and  over  again  for  all  the 
investment  it  really  made. 

7.  "Toicns  and  cities  will  he  extravagant  and  go  into  debt 
for  public  works."  It  is  easy  enough  to  stop  that  by  a  statu- 
tory debt  limit,  which  indeed  already  exists  in  nearly  all  the 
states.  It  is  not  necessary  to  go  into  debt  in  order  to  secure 
public  OAvnership,  not  one  dollar  of  either  debt  or  taxation  is 
necessary.  (See  section  on  Method  above.)  But  suppose 
cities  and  towns  should  be  extravagant,  are  they  not  of  age? 
And  will  you  advocate  tying  their  hands  and  telling  them  what 
they  may  do  and  what  they  may  not  do  with  their  own  money 
and  credit  in  their  own  affairs?  Are  you  not  the  same  gentle- 
man who  objected  a  moment  ago  to  any  sort  of  paternalism? 

In  a  witty  speech  at  the  State  House  in  Boston,  before  the 
legislative  committee  that  was  considering  the  bill  of  1897, 
pennitting  cities  and  towns  to  own  and  operate  street  railways. 
Col.  Thos.  Wentworth  Higginson  recalled  the  fact  that  fifty 
years  before,  when  public  water  works  were  as  scarce  in 
Massachusetts  as  public  railways  are  now,  and  progressive  men 
were  coming  to  the  State  House  year  after  year  to  ask  the 
legislature  to  grant  permission  for  the  municipalization  of  the 
water  supply,  the  very  same  objections  had  been  raised  that 
are  brought  forward  now  against  municipal  ownership  of  the 
railways.  He  remembered  it  had  been  said  that  the  additional 
patronage  would  be  dangerous,  that  the  public  water-works 
would  be  a  source  of  corruption  in  politics,  that  towns  and 
cities  would  be  extravagant  and  go  heavily  in  debt  for  water, 
that  it  was  aside  from  the  proper  sphere  of  government  to 
manage  such  business  enterprises,  etc.  Yet  the  fear  of  evil 
consequences  had  proved  to  be  groundless;  experience  had 
demonstrated  the  benefits  of  public  water-works,  and  the  right 
of  cities  and  toAvns  to  municipalize'  the  water  supply  is  firmly 
established  in  our  law.    Col.  Iligginson's  address  was  specially 


240  THE  CITY  FOR  THE  PEOPLE. 

amusing,  as  several  of  the  time-honored  objections  he  spoke 
of  had  been  raised  bj  members  of  the  Railway  Committee  of 
the  House  a  few  moments  before  he  addressed  them. 

8.  "Private  initiative  will  he  lost  by  public  ownership" 
On  the  contrary  it  will  probably  have  freer  play  under  public 
ownership  than  under  private  monopoly.  It  is  only  in  com- 
petitive business  that  the  superiority  of  private  initiative  mani- 
fests itself,  and  the  wastes'  and  antagonisms  that  accompany 
it  go  far  toward  cancelling  its  benefits  even  there.  When  a 
private  monopoly  holds  the  field  free  initiative  is  hedged  witli- 
in  narrower  limits  than  irnider  any  other  form  of  industry. 
(Section  XXVI.) 

9.  "Public  owmership  is  non-progressive.  See  how  far  the 
public  railways  of  Europe  lag  behind  our  private  railways." 
The  inference  is  unfair;  it  is  not  public  ownership,  but  Europe 
that  is  non-progressive.  Many  enterprises  in  Europe  that 
have  no  connection  with  public  ownership  are  less  developed 
than  in  America,  e.  g.,  elevators,  banks,  hotels,  labor  saving 
machinery  of  all  kinds,  etc.  The  railroads  of  Great  Britain 
are  private,  but  they  are  far  behind  ours.  Even  the  conven- 
ience, almost  necessity,  we  should  consider  it,  of  a  baggage 
check  is  practically  unknown  in  England,  and  the  passenger 
has  to  look  after  his  baggage  as  best  he  can.  The  European 
passenger  is  locked  in  an  apartment  in  the  car  and  can't  get 
out  till  the  man  with  the  key  lets  him  out.  In  America  Phila- 
delphia is  considered  so  slow  that  when  a  ITew  York  actor 
asked  a  young  lady  where  her  mother  was,  and  she  replied  ''In 
Philadelphia,"  the  actor  said,  "Oh,  well,  don't  wake  her  up." 
Yet  Philadelphia  is  too  much  for  England  in  competition,  even 
in  the  heart  of  England's  empire  in  Egypt.  The  bridge  across 
the  Atbara  river,  a  thousand  miles  south  of  Cairo  on  the  line 
of  the  railroad  that  will  run  from  Cairo  to  the  Cape,  has  been 
built  by  Philadelphia  bridge  builders,  in  competition  with  the 
leading  establishments  of  England.  The  English  builders 
asked  for  two  years  time— one  year  to  prepare  the  material 
and  another  year  to  erect  the  bridge;  and  they  wanted  $67,750 
for  the  completed  work.     The  Philadelphia  house  promised 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  241 

the  material  in  six  weeks,  the  fijiished  bridge  in  six  months, 
the  whole  cost  to  be  $28,000.  They  got  the  contract,  they 
have  kept  their  promises,  and  the  most  rigid  inspection  pro- 
nounces the  materials  and  the  structure  all  that  can  be  desired. 
There  were  some  insinuations  that  the  Americans  got  the  con- 
tract by  bribery  and  the  corrupt  use  of  money;  but  Lord 
Comer,  the  head  of  the  English  political  authority  in  Egypt, 
and  Lord  Kitchener,  the  Commander-in-Chief  of  the  Egyptian 
Army,  have  silenced  all  such  stories  by  stating  the  facts.  In 
opening  the  bridge  Lord  Kitchener  said:  "The  construction 
of  this  magnificent  bridge,  I  think  may  fairly  be  considered 
a.  record  achievement.  *  *  *  As  Englishmen  failed,  I 
am  delighted  that  our  cousins  across  the  Atlantic  stepped  in. 
This  bridge  is  due  to  tJieir  energy,  ability,  and  power  to  turn 
out  works  of  magnitude  in  less  time  than  anybody  else.  I 
congratulate  the  Americans  on  their  success  in  the  erection 
of  a  bridge  in  the  heart  of  Africa.  They  have  shown  real  grit 
far  from  home,  in  the  hottest  month  of  the  year,  and  depend- 
ing upon  the  labor  of  foreigners." 

\^nhen  public  entei-prise  in  Europe  is  compared  with  private 
enterprise  in  Europe,  or  when  a  comparison  is  made  between 
public  and  private  monopoly  in  this  country  the  record  for 
progressiveness  is  with  the  public  monopoly,  and  in  the  case 
of  the  telegraph  and  telephone  the  public  plants  of  Europe 
are  in  a  number  of  cases  ahead  of  our  private  systems.^ 

10.  ^'Puhlic  ovMersMp  is  inefficient."  Efiiciency  is  largely 
a  matter  of  the  personal  equation.  Some  public  plants  are 
ill-managed  and  some  are  well  managed,  and  the  same  is  true 
of  private  plants.  The  evidence  indicates  that  on  the  average 
public  plants  are  quite  as  well  if  not  better  managed  than  pri- 
vate monopolies.    (See  last  section  and  references  there  given, 


1  See  sections  1,  5,  12,  I,  X,  and  XXVI,  and  the  parts  on  Experience  and 
Metliod.  In  a  paper  read  at  a  meeting  of  the  Amer.  Gas  Light  Assoc,  by  Mr. 
E.  G.  Cowdery,  the  author  says  there  is  great  need  for  better  management 
of  the  private  gas  worlis.  "The  gas  business,"  he  says,  'and  progress  in 
it  has  been  greatly  retarded  by  methods,  which  are  not  sound  in  pnncipie, 
but  greatly  speculative  in  their  nature."  (Progressive  Af/c,  ISov.  1,  1890.) 
Prof.  Bemis  says,  "Private  gas  companies  with  an  assured  monopoly,  often 
feel  less  impelled  to  make  improvements  than  public  companies  controlled 
by  the  voters,  whose  demands  for  cheap  light,  etc.,  can  be  brought  to  bear 
upon  their  own  agents  far  more  easily  than  upon  private  companies. 
■Municipal  Gas,  p.  132,  see  also  p.  118.) 

16 


242  THE  CITY  FOB  THE  PEOPLE. 

especially  noting  the  splendid  facts  of  Section  I.)  Mr.  H.  A. 
Foster,  who  opposes  municipal  ownership  and  defends  the  pri- 
vate electric  companies  in  the  Electrical  Engineer  of  Septem- 
ber 5,  1894,  nevertheless  frankly  says  that  "In  all  fairness  it 
may  be  said  that  the  much-vaunted  better  management  in  pri- 
vate hands  does  not  exist.  In  fact,  the  men  in  charge  of  city 
plants  compare  quite  favorably  with  those  in  charge  of  private 
plants  of  similar  size."  He  also  admits  that  public  plants  are 
commonly  bought  or  constructed  as  cheaply  as  private,  and 
speaking  of  the  correspondence  by  which  the  Electrical  Engi- 
neer obtained  the  data  it  engaged  Mr.  Foster  to  analyze  and 
wTite  up,  he  says: 

"The  tone  of  all  communications  from  those  favoring  the 
municipal  side  seems  to  have  taken  it  for  granted  that  the  re- 
sults shown  would  tell  that  side  sufficiently  well;  and  it  mu^t 
be  admitted  that  in  quite  a  number  of  cases,  such  is  the  fact." 
Kemembering  that  Mr.  Foster  is  an  electrical  expert  and  ac- 
countant of  high  standing,  who  was  employed  on  the  census  of 
1890,  and  is  one  of  the  ablest  of  those  who  have  written  in 
opposition  to  public  ownership,  the  above  admissions  would 
seem  to  close  the  case  on  this  point.^ 

11.  "Public  otvnership  is  less  economical  than  private." 
This  is  the  point  Mr.  Foster  attempts  to  make.  Even  if  it  were 
admitted  little  would  be  gained  against  the  overwhelming  mass 
of  reasons  for  public  ownership,  many  of  which  vastly  out- 
weigh any  mere  matter  of  "dollars  and  cents.  Moreover,  if  it 
were  admitted  that  private  operation  is  more  economical  than 
public,  the  question  would  immediately  follow,  "Who  gets 
the  benefit  of  the  economy?"  AVould  it  be  wise  for  the  i>eople 
to  forego  the  benefits  of  better  service,  purer  government, 
better  diffusion  of  wealth,  better  treatment  of  labor,  etc.,  for 
the  sake  of  an  economy  that  would  merely  put  more  dollai-s 
in  the  already  overloaded  pockets  of  a  few  monopolists?    But 


dltloiTof  inpffiHono^  .  '^^I'oi't  of  the  Kansas  Labor  Bureau  discloses  a  con- 
thftn  hn«  hp?n  ^iuL'°  P^'"'?^^  ^""^  P^"^^^  ^*i'ch  Prof.  Bemis  says  Is  "worse 
(nmntthr^J\^l7^^f^  *?  ^°J  o'  ^^^  P^^lic  plants."  One  large  plant 
of*  lU  outnut  o?49  r^  .?«*  l^'^l  by  leakage  and  condensation  of  25  por  cent, 
a  loss  of  2^2  r.or^n?^'"Tu '*'*'*•  A°other  with  over  5  million  feet  reports 
Ind  stni  nnnt^hPr  bnV  ^'^^^^  another  does  not  keep  any  account  of  leakage; 
made  at  thP  wnri-  ^,m°  .^t^"""  ™^.t^''  ^°  determine  the  amount  of  |as 
maae  at  the  works.    (Munic.   Monopolies,  p.  620.) 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  243 

as  a  matter  of  fact  there  is  no  such  superior  economy  in  pri- 
vate monopoly;  the  superior  economy,  as  we  have  abundantly 
shown,  is  with  public  ownership.     (Sections  1,  2,  I   II   HI 
IV,  XXI.) 

Mr.  Foster  reaches  his  result  by  averaging  the  lamp  hour  costs 
in  anomolous  groups  of  plants  and  allowing  ISy,  per  cent,  on  the 
whole  cost  of  the  plant  up  to  date  for  fixed  charges  in  the  public 
works  (6  per  cent,  interest,  71/2  per  cent,  for  depreciation).  The 
overwhelming  weight  of  expert  opinion  is  that  71/2  per  cent,  is  al- 
together too  high  for  depreciation.^  The  managers  of  private 
electric  lighting  plants  when  estimating  depreciation  rarely  place 
it  above  3  per  cent.  From  1890  to  1897,  inclusive,  the  amounts 
written  off  by  the  Massachusetts  companies  average  less  than  2 
per  cent.* 

But  the  doubling  of  the  depreciation  and  more  is  nothing  com- 
pared to  the  estimating  of  depreciation  on  the  ichole  cost  of  the  plant 
dovm  to  date,  with  no  deductions  for  depreciation  in  former  years. 
If  the  plant  cost  $200  per  arc,  714  per  cent,  depreciation  would  be 
$15,  and  the  next  year  the  value  of  the  plant  on  which  the  new 
depreciation  charge  should  be  estimated  would  be  only  $185,  and 
the  depreciation  $13.88;  the  fifth  year  the  value  per  arc  would  be 
$146.42  and  the  depreciation  only  $10.96,  and  so  on,  but  Mr.  Foster 
does  not  make  these  subtractions,  and  so  in  another  way  unduly 
inflates  the  fixed  charges  in  public  plants.  It  may  do  for  the  super- 
intendents of  public  plants  to  neglect  the  deductions  of  deprecia- 
tion, for  in  many  cases  the  showing  is  sufiiciently  remarkable  with- 
out reference  to  this  matter,  but  it  will  not  do  for  the  opponents 
of  public  ownership  to  disregard  such  deductions,  especially  when 
they  insist  on  such  a  high  rate  of  depreciation  as  7^^  per  cent.  Six 
per  cent,  interest  is  also  too  high  for  municipal  plants,  as  Mr.  Fos- 
ter has  himself  admitted  since  his  article  was  written.  Moreover, 
3  of  the  14  municipal  plants  used  by  Mr.  Foster  are  so  exceptional 
as  to  be  entirely  out  of  place  in  an  average:  Alameda,  Cal.,  where, 
as  he  says  himself,  the  cost  is  so  high  as  to  "throw  doubt  on  the 
accuracy  of  the  figures;"  Fairfield,  la.,  a  diminutive  plant,  with 
only  14  arcs  then,  and  Anderson,  Ind.,  using  natural  gas — two  cities 
with  exceptionally  high  costs  and  one  with  exceptionally  low^  cost. 
Further,  the  lamp-hour  or  candle-power  cost  is  not  a  fair  test  unless 
the  conditions  as  to  price  of  coal,  hours  of  burning,  etc.,  are  similar 
in  the  cases  compared,  or  the  difference  is  fully  allowed  for,  which 
is  not  the  fact  in  Mr.  Foster's  comparisons.  If  two  plants  are  equal 
in  every  way  except  that  one  runs  all  night  and  the  other  only  till 
midnight,  the  cost  per  lamp-hour  or  candle-power,  will  be  consider- 
ably less  in  the  all-night  plant.    'The  longer  load  lessens  the  cost 


^  See  chapters  on  Electric  Light  by  Profs.  Commons  and  Bemis,  In  Muni- 
cipal Monopolies  and  facts  and  authorities  cited  in  my  Arena  articles  of  1895. 
=  Municipal  Monopolies,  p.  207. 


244  THE  CITY  FOE  THE  PEOPLE. 

per  hour  in  the  same  plant  with  the  same  manag-ement  and  equal 
economy  in  every  respect.  If  the  cost  per  candle-power  were  the 
same  in  the  two  cases,  the  all-night  lamp  would  cost  twice  as  much 
as  the  midnight  lamp,  whereas,  in  fact,  the  difference  is  only  one- 
fifth,  so  that  an  all-night  plant  that  charges  the  same  per  candle- 
power  as  a  midnight  plant,  is  charging  a  great  deal  too  much  if 
the  midnight  charge  is  a  proper  one  and  other  things  are  equal. 
Similar  considerations  invalidate  inferences  against  public  street 
plants  by  comparing  them  with  private  commercial  plants  without 
allowance  for  differences  of  condition.  Even  this  is  notall.  Mr. Foster 
estimates  (as  he  tells  us  he  had  to  since  they  were  not  reported) 
the  watt  hours  per  lamp  for  all  commercial  arcs  and  incandescents, 
and  for  nearly  half  the  street  lamps;  he  says  he  has  not  much  confi- 
dence in  his  estimates,  as  to  said  hours,  in  which  we  cordially  agree 
with  him,  said  estimates  being  vague  guesses,  apparently  based  on 
the  principle  that  lamps  of  a  given  candle-power  are  run  the  same 
number  of  hours  in  all  places.  After  this  he  proceeds  to  calculate 
the  cost  per  kilowatt  hour  and  per  lamp  hour,  covering  a  7x10  page 
of  the  Electrical  Engineer  with  three  and  four-place  decimals  to 
complete  the  operation.  Being  based  on  hours  of  burning  guessed 
at  in  2-3  of  the  cases  and  on  fixed  charges  out  of  all  bounds,  it  is 
easy  to  see  how  much  more  convenient  it  will  be  to  use  these  lamp- 
hour  rates  as  a  basis  of  comparison  with  the  charges  of  private 
companies  instead  of  comparing  the  cost  of  a  standard  arc  per  year 
in  a  public  plant  with  the  cost  of  a  standard  arc  per  year  in  a 
private  plant  under  similar  conditions  of  production,  as  an  unscien- 
tific person  would  be  apt  to  do  rather  than  spend  a  couple  of  weeks 
writing  down  guesses  at  schedules  and  ciphering  out  mysterious 
and  irrresponsible  hour  rates  to  four  places  of  decimals,  so  as  to 
forget  that  the  said  hour  rates  are  based  on  guesses,  and  proceed  to 
draw  inferences  from  them  that  never  could  be  obtained  from  the 
simple,  undifferentiated,  unmystified,  unsophisticated  cost  per  arc 
per  year.  The  public  plants  included  in  Mr.  Poster's  investi- 
gation, are  in  every  part  of  the  country,  from  Maine  to  California, 
under  all  sorts  of  conditions  as  to  output  and  length  of  run,  cost 
of  labor  and  power,  but  Mr.  Foster  says  nothing  about  said  rela- 
tions of  cost  (except  the  general  remark  that  in  more  than  half 
of  these  places  a  private  plant  could  probably  not  be  made  to  pay), 
and  selects  a  lot  of  places  in  New  York  state,  nestling  near  the  coal 
fields,  pairs  them  off  by  population  with  the  same  public  plants — 
undergfround  system  against  overhead,  little  street  plants  against 
commercial  plants,  stations  with  tremendous  investment  ($473  per 
arc  in  the  case  of  Alameda,  Cal.,  which  counts  pretty  fast  at  1314 
per  cent.)  and  $5  or  $6  coal  against  stations  with  low  investment 
and  $2  coal;  and  then  without  making  any  allowance  for  differences 
of  condition,  sums  up  his  groups,  takes  the  average  on  each  side 
and  announces  that  "The  result  is  somewhat  surprising,  as  there 
is  a  difference  of  20  per  cent  in  favor  of  the  private  companies." 

Finally,  if  the  three  manifestly  unjust  comparisons  be  omitted 
and  reasonable  rates  for  interest  and  depreciation  be  taken,  the  re- 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  245 

suits  of  Mr.  Foster's  own  tables  are  favorable  to  municipal  owner- 
ship by  22  per  cent./  in  spite  of  his  reckless  g-uessing-  at  hours 
and  special  selection  of  private  plants,  which  was  probably  not 
done  by  the  electrical  engineer  or  Mr.  Foster  with  any  intent  to 
color  the  truth,  but  because  the  data  respecting  the  Xew  York 
works  were  easily  attainable. 

12.  '^The  frequent  failure  of  publie  ownership  sJiows  it  in 
not  successful."  This  is  in  substance  the  point  made  by  M.  J. 
Francisco,  who  gives  the  names  of  22  places  that  he  says  have 
l>eeome  dissatisfied  with  their  electric  lighting  plants  and  sold 
them.  Prof.  Bemis  wrote  to  each  of  the  municipalities  named 
by  Francisco,  and  got  18  replies.^  One  of  the  places  never 
owned  a  public  electric  plant.  Seven  others  still  own  their 
|)lants  and  are  satisfied  with  them.  One  merely  took  a  failing 
private  plant  temporarily  till  a  new  company  could  be  got  to 
run  it.  One  plant  burned  and  the  city  was  too  heavily  in- 
volved at  the  time  to  put  in  a  new  one.  One  city  sold  its  plant, 
not  because  of  dissatisfaction  at  all,  but  because  it  had  not  the 
means  to  reconstruct  it.  In  another  case  the  plant  was  con- 
structed for  a  village:  the  place  now  has  40,000  inhabitants; 
the  introduction  of  cheap  water  power  is  expected  soon,  and 
while  waiting  for  this  the  city  is  buying  light  temporarily  of 
a  railway  company  which  has  surplus  power.  In  5  cases  the 
plant  teas  sold;  two  of  them  being  plants  that  failed  both  in 
public  and  private  hands;  the  cause  in  the  third  case  unknown ; 
in  the  fourth  and  fifth  cases  plants  entirely  satisfactory  to 
the  people  were  sold  thru  corporate  intrigue  and  influence  in 
councils;  these  were  the  cases  of  Michigan  city  and  East  Port- 
land, already  mentioned  in  Section  8.  Only  two  failures  in 
the  whole  lot  so  far  discovered,  and  one  case  of  sale  with  the 
cause  not  stated,  and  both  the  failing  plants  were  failures  also 
under  private  management. 

Even  if  all  the  plants  cit^ed  by  Francisco  had  really  failed  it  would 
prove  nothing;  22  failures  out  of  three  or  four  hundred  public  elec- 
tric plants  would  not  be  alarming.  The  real  failures  cannot  be 
more  than  3  per  cent,  on  the  evidence  before  us,  even  supposing 
all   cases  not  heard   from  were  failures.     The  failures  in  private 


'See  p.  94,  Arena  for  Sept.,  1895,  and  pp.  134-139  of  "Municipal  Mono- 
polies." 

1  Prof.  Bemls  says  18,  but  only  gives  the  results  in  17  cases.  See  the 
details  in  full  in  Municipal  Monopolies,  pp.  218-21. 


246  THE  CITY  FOB  THE  PEOPLE. 

business  are  said  to  be  95  per  cent.,  but  this  includes  competitive 
as  well  as  monopolistic  business.  I  have  not  been  able  to  obtain 
an  estimate  of  the  failures  of  private  electric  light  plants. 

M.  J.  Francisco  is  the  author  of  "Municipal  Ownership;  Its  Fal- 
lacy." He  is  attorney  for  an  electric  light  company,  and  has  been 
president  of  the  National  Electric  Light  Association.  He  is  or  was 
at  the  head  of  an  electric  company  in  Rutland,  Vt.,  which  the  iEgis 
investigators  of  Wisconsin  University  say  was  charging  $280  per 
arc  in  1893  when  Allegheny  was  making  light  at  a  total  cost  of  $83 
per  arc,  equivalent,  perhaps,  to  $100  under  Rutland  conditions. 
Francisco's  pamphlet  is  simply  an  attorney's  brief,  and  not  a  truth- 
ful brief,  either. 

Mr.  Johnston,  of  the  .^gis,  consulted  Chicago's  chief  of  construc- 
tion and  other  officers  in  reference  to  Francisco's  statements  about 
that  city,  with  the  following  result:  "In  this  pamphlet  Francisco 
says  that  part  of  the  operating  expenses  are  charged  to  the  police 
and  fire  departments.  Mr.  Carrol  says  not  one  cent  is  so  charged.." 
(Indeed  Francisco  must  have  thought  the  officers  of  fire  and  police 
were  sleepy  gentlemen  to  allow  such  accounting — they  wish,  like 
other  officers,  to  make  as  good  a  showing  as  possible  for  their  own 
departments.)  "Francisco  figures  linemen's  salaries  at  $2500. 
There  is  not  a  lineman  employed  by  the  city;  all  the  wires  are  un- 
derground. The  cost  of  coal  per  lamp  is  given  by  Francisco  at  $40, 
while  the  real  cost  is  but  $27,  and  in  nearlj^  every  calculation  Fran- 
cisco has  juggled  vrith  the  facts  in  order  to  prove  his  theory." 

Francisco  uses  the  lamp  hour  and  candle  power  test  with  reck- 
less disregard  of  conditions.  In  one  case  he  reaches  his  result  by 
assuming  that  2,175  incandescents  of  an  average  of  27  candle  power, 
are  equivalent  to  48  arcs  of  1200  candle  power,  whereas  in  reality 
they  are  equivalent  to  about  524  such  arcs  in  cost  of  operation.' 
By  such  means  he  arrives  at  very  erroneous  conclusions  respecting 
the  cost  in  plants.  We  do  not  need  to  waste  further  time  with  Fran- 
cisco; Professor  Commons  found  his  statements  "utterly  untrust- 
worthy.'" Prof.  Bemis  and  the  .SEgis  investigators  had  the  same 
experience,  and  anyone  who  will  compare  pp.  82-3  of  Francisco's  pam- 
phlet with  Vol.  -3,  n.  3,  Amer.  Statis.  Assoc.  Pubs.,  p.  302-3,  will  doubt 
whether  the  quoted  words  are  strong  enough  to  cover  some  of 
Francisco's  statements.  Francisco  cites  Victor  Rosewater  as  saying 
in  a  given  article  precisely  the  contrary  of  what  Victor  Rosewater 
really  said  in  that  article.'    Francisco  also  quotes  approvingly  the 


»  Municipal  Monopolies,  pp.  224-5. 

»Ibld.  p.  95. 

»  On  Francisco's  pages  82  and  83,  we  find: 
An  honest  opinion  by  a  former  advocate  of  municipal  ownership." 
Soon  after  the  first  paper  on  municipal  ownership  was  read  at  Cape 
May,  Victor  Risewater  published  an  article  In  the  New  York  Independent 
•claiming  that  nuinicipallties  could  and  did  furnish  the  lights  at  less  expense 
than  private  companies.  •  *  Mr.  Rosewater  afterward  discovered  that  the 
reports  of  municipal  plants,  which  had  been  furnished  bv  the  advocates  of 
municipal  ownership,  were  not  reliable.  He  frankly  and'honestlv  confessed 
his  error  in  an  article  published  by  the  Amer.  Statistical  Assoc^  *  *  The 
result  Is,  In  Mr.  Rosewater's  opinion,  that  there  Is  no  possibility  of  making 
<ieflnlte  comparisons." 

This  is  simple  straightforward  lying.     Victor  Rosewater  did  not  say  that 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  247 

impartial  Mr.  Cowling-  and  the  packed  committee  of  Philadelphia 
already  referred  to,  also  the  report  of  the  Massachusetts  gas  com- 
mittee written  by  the  attorney  of  the  Bay  State  Gas  Co.,  and  fol- 
lowing the  worst  corporation  style  with  such  marked  success  that 
it  is  known  to-day  as  one  of  the  purest  examples  of  misstatement 
and  fallacy  to  be  found  in  the  English  language.* 

There  are  a  few  other  statements,  however,  that  are  entitled  to 
consideration  before  a  prize  is  awarded.  For  example  the  pam^ 
phlet  handed  to  Massachusetts  legislators  in  1897,  entitled  a  "Com- 
parison of  Street  Kailway  Conditions  and  Methods  in  Europe  and 
the  United  States,"  by  P.  F.  Sullivan,  a  street  railway  official  (gen- 
eral manager)  from  Lowell.  It  would  be  amusing  to  spend  a  halt 
hour  with  this  pamphlet,  but  one  or  two  samples  must  suffice.  On 
page  6  we  find  that  "In  all  cities  in  the  United  Kingdom  other  than 
Glasgow  2  cents  is  the  minimum  fare."  On  page  18:  "The  tendency 
is  quite  the  other  way,  as  witness  the  adoption  of  one  cent  fares 
for  a  half-mile  ride  in  Glasgow  and  London."  On  page  13  we  read 
that  "The  West  End  Co.  averaged  for  the  fiscal  year  ending  Sep- 


he  had  found  the  reports  of  mnnlclpalltles  unreliable.  He  made  no  such  eon- 
ression,  nor  did  he  say  that  definite  comparisons  were  not  possible.  On  the 
contrary  he  distinctly  affirms  in  the  very  article  referred  to  that  specific 
comparisons  are  valid  when  carefully  made.  (Amer.  Statis.  Assoc,  vol.  3, 
U.  S.  p.  302-3.)  What  he  does  "confess"  is  that  in  the  Independent  article 
he  made  the  mistake  of  comparing  averages  made  up  frdm  imperfectly  classified 
lists  of  rates.  That  is  the  only  "error"  he  confesses.  He  gives  the  Statisti- 
cal Association  page  after  page  of  municipal  returns,  so  that  he  could 
scarcely  have  thought  them  unreliable.  He  expressly  declares  specific  com- 
parisons with  due  allowance  for  differences  of  condition  to  be  good,  but 
opposes  the  comparison  of  averages  as  usually  made. 

On  page  300,  Victor  Rosewater  says,  "The  cost  per  hour  is  utterly  worth- 
less for  any  scientific  use,"  and  condemns  the  practice  of  comparing  one 
plant  with  another  (with  different  conditions  as  to  run,  etc.)  by  means  of  the 
lamp  hour  cost,  as  being  entirely  unreliable.  Yet  this  is  precisely  the 
method  adopted  by  Francisco  all  the  way  through  his  book. 

*  During  the  struggle  in  Massachusetts  to  secure  a  law  permitting  cities 
and  towns  to  own  and  operate  gas  and  electric  plants,  a  committee  of  the 
State  Senate  visited  three  cities  that  had  public  gas  plants:  Richmond,  Alex- 
andria, and  Philadelphia.  Mr.  M.  S.  Greenough,  attorney  for  the  Bay  State 
Gas  Company  of  Boston  accompanied  the  committee,  did  most  of  the  "in- 
vestigating" and  wrote  the  report  made  to  the  senate  in  April,  1890.  In 
writing  of  Richmond  the  attorney  included  the  cost  of  all  extensions  and 
permanent  improvements  in  the  operating  expenses  and  made  various  other 
"mistakes,"  giving  a  false  view  of  the  Rielimond  situation  (Prof.  Bemis' 
Municipal  Gas,  pp.  87-8).  The  misstatements  and  omissions  in  the  account 
of  the  Philadelphia  works  were  so  serious  that  Superintendent  Wagner  of 
the  Philadelphia  gas  works  wrote,  "I  am  sure  you  will  excuse  me  for  enter- 
ing into  a  controversy  with  gentlemen  who  have  not  even  the  common 
honesty  of  correct  quotations  in  the  reports  they  submit  as  the  result  of  their 
nvestigations."     (Munic.   Gas,  p.  12.) 

On  behalf  of  the  petitioners  I  had  the  pleasure  of  replying  to  the 
gaseous  arguments  of  counsel  at  the  State  House  on  the  municipal  lighting 
bill  (see  verbatim  reports  in  Boston  Commonwealth  March  29,  and  April 
5,  1890).  and  in  closing  said  in  substance,  "Brushing  away  the  sophistry  of 
the  corporation  counsel  the  whole  substance  of  the  issue  is  seen  to  be  this: 
On  one  side  the  companies  do  not  wish  to  lose  their  franchises,  i.  e.,  their 
existing  chances  of  making  profit  on  their  investment  beyond  what  they 
could  make  with  the  same  capital  in  an  employment  unprotected  by  a  mono- 
poly, and  on  the  other  side  the  interests  of  the  people  require  that  public 
franchises  and  enterprises  outside  the  sphere  of  competition  should  not  be 
given  over  to  private  control  for  private  gain,  and  the  building  of  fortunes 
beyond  equivalence  for  the  service  rendered.  It  is  the  people  vs.  the  com- 
panies, public  good  vs.  private  interest.  That  is  the  plain  Issue.  Thousands 
of  solid  citizens  petition  for  the  law.  One  manufacturer  of  gas  machinery, 
two  gas  companies  and  one  electric  trust  are  ail  the  remonstrants.  The 
legislature  is  the  agent  of  the  people,  not  of  the  companies,  and  it  is  always 
the  duty  of  an  agent  to  forward  the  interests  of  his  principal,  when  acting 
in  his  business." 


248  THE  CITY  FOK  THE  PEOPLE. 

tember  30,  1896,  to  carry  fewer  than  seven  persons  per  car  mile. 
Bow  then  can  we  account  for  the  thirty  or  forty  persons  that  we  see  so 
frequently  upon  one  of  that  company's  cars?  It  means  that  if  you 
divide  30  or  40  by  7,  they  averaged  to  ride  4  &  2/7  or  o  &  5/7  miles." 
We  might  with  equally  potent  logic  and  profound  philosophy  ask, 
"How  can  we  account  for  the  3  or  4  persons  we  so  frequently  see 
on  one  of  the  cars?  or  the  10  or  12  persons,  or  the  70  or  80  persons, 
we  so  frequently  see  on  one  of  that  company's  cars."  Aristotle. 
Whately  and  Mill  were  slow  compared  to  Sullivan.  You  couldn't 
prove  anything  and  everything  by  their  logic.  But  you  can  fix  on 
any  average  ride  you  desire  and  prove  it  by  Sullivan's  logic  just  as 
conclusively  as  he  proves  this  and  the  rest  of  his — well,  "argu- 
ments," we  may  call  them  by  courtesy. 

In  dealing  with  discussions  of  municipal  ownership  and  other 
progressive  movements  it  is  important  to  remember  that  while  any 
writer  may  make  mistakes  whatever  his  point  of  view,  yet  the 
motives  of  those  who  oppose  public  ownership  are  usually  very  much 
inferior  to  the  motives  of  those  who  advocate  it.  Those  who  oppose 
public  ownership  usually  do  so  from  motives  of  self-interest  of 
a  low  type,  or  from  the  bias  of  conservative  training  resisting 
change  and  new  ideas  by  instinct  and  reflex  action,  or  from  both 
these  motives;  while  those  who  advocate  public  ownership  gener- 
ally do  so  from  a  conviction  that  it  will  be  for  the  good  of  the 
community — a  conviction  reached  in  many  cases  after  long,  earnest, 
painstaking  study  that  has  overcome  preconceived  opinions  to  the 
contrary.  Such  advocacj',  moreover,  is  frequently  opposed  to  the 
selfish  interests  of  the  advocate,  and  made  at  serious  loss  and  in- 
convenience. 

Two  instances  frequently  cited  as  failures  of  public  ownership 
must  be  mentioned  under  this  twelfth  head;  I  refer  to  the  Philadel- 
phia gas  works  and  the  Chicago  electric  light  plant. 

The  Philadelphia  gas  works  have  never  been  really  and  com- 
pletely public.  When  councils  took  possession  of  the  works  in 
1841  they  were  put  in  the  hands  of  trustees,  who  became,  under 
the  rulings  of  the  courts,  the  agents  of  the  bondholders  and  abso- 
lute masters  of  the  situation  as  against  the  city  until  the  bonds 
were  paid.  The  control  of  this  board  of  trustees  was  emphatically 
private  ovraership,  and  became  one  of  the  most  corrupt  in  history.* 
Bj^  combination  with  private  street  railway  interests  the  gas  trust 
became  very  powerful  as  well  as  corrupt,  and  practically  owned  the 
city  government  instead  of  the  city  government's  owning  the  gas 
works.  It  was  not  until  1887  that  the  government  was  really  able 
to  control  the  works,  and  even  that  change  did  not  make  the  plant 
really  public,  for  the  people  do  not  own  the  government  in  Phila- 


'See  Bryce's   "American   Commonwealth,"   and   appendix   to    "Municipal 
Gas. 


PUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  249 

delphia  as  is  clearlj'  shown  b3-  the  refusal  of  councils  to  submit 
the  question  of  leasing  the  works  to  a  vote  of  the  people.  Since 
water  gas  came  into  fashion  a  considerable  part  of  the  gas  supplied 
to  the  city  has  been  bought  of  a  private  company  instead  of  fitting 
the  city  works  to  make  their  own  water  gas.  This  private  com- 
pany gas  cost  the  city  a  good  deal  more  than  it  would  have  cost  if  it 
had  been  made  by  the  city.  :Moreover,  the  keeping  of  a  private 
interest  in  the  gas  business  created  a  specially  disturbing  influence 
always  seeking  to  control  councils  and  get  possession  of  the  whole 
business.  Councils  refused  to  make  appropriations  for  needed  im- 
provements and  repairs  and  did  all  in  their  power  to  discredit  the 
works  so  as  to  justify  a  sale  or  lease.  And  yet  in  spite  of  all  these 
difficulties  the  financial  record  of  this  quasi-public  plant  is  good. 
Before  the  lease  the  plant  had  paid  for  itself  out  of  net  earn- 
ings, and  had  furnished  cheaper  gas  during  nearly  all  of  its 
history  than  had  the  private  works  of  New  York,  Baltimore,  and 
Washington.  In  1894  the  Quaker  City  had  done  what  the  Standard 
Oil,  Gould,  and  Sage  interests  insisted  before  the  New  York  Legis- 
lature in  1897  could  not  be  done  without  ruin,  viz.,  reduced  the  price 
of  gas  to  $1.  Yet  the  works  continued  to  paj'  operating  expenses 
and  depreciation  charges  besides  furnishing  nearl3^  700,000,000  feet 
of  free  gas  to  the  citj-  each  year,  worth  at  the  current  rate,  $700,000, 
or  fully  7  per  cent,  on  the  structural  value  of  the  plant. 

The  works  are  not  leased  for  the  financial  good  of  the  city,  for' 
the  citj'  could  have  secured  lower  prices  and  more  profits  by  keep- 
ing the  works  than  are  provided  for  by  the  lease,  as  Prof.  Bemis 
has  shown.'  The  works  were  not  even  leased  to  the  highest  bid- 
ders, as  competing  companies  made  much  better  offers  than  the 
United  Gas  Improvement  Company.  The  lease  was  a  private  busi- 
ness transaction  of  the  class  in  which  an  agent  sells  out  his 
principal's  property  and  business  to  a  corporation  in  which  the 
said  agent  has  an  interest,  or  from  which  he  has  received  a  con- 
sideration. If  it  had  been  provided,  as  in  Richmond,  that  no  sale 
or  lease  of  the  w^orks  could  be  made  without  consent  of  the  people, 
the  plant  would  still  be  in  the  city's  hands,  and  the  intrigues  to 
capture  it  would  probably  never  have  been  entered  upon.  If  the 
people  had  possessed  the  initiative  upon  city  ordinances  they  would 
long  ago  have  ordered  the  repairs  and  improvements  asked  for 
by  this  department,  and  by  the  water  department,  and  both  the 
plants  would  have  been  a  credit  to  the  city  in  everj-  way;  worthy 
representatives  of  complete  public  ownership,  and  not  mere  quasi- 
public  institutions  as  has  been  the  fact. 

One  of  the  main  resources  of  objectors  has  been  to  point  out 
the  defects  of  the  Chicago  electric  plant  and  exaggerate  them 
into  a  "failure."  A  careful  review  of  the  case,  however,  from  first 
to  last,  reveals,  not  a  failure,  but  a  remarkable  success,  especially 


Muuicipal  Monopolies.  606. 


250  THE  CITY  FOR  THE  PEOPLE. 

when  we  foiisider  the  expensive  character  of  the  construction,  the 
high  wages  and  short  hours,  the  small  number  of  lights  compared 
to  the  capacity  of  the  plant,  and  the  size  of  the  city,  the  absence 
of  commercial  lighting,  and  the  influence  of  the  spoils  system  which 
has  now  been  overcome. 

Chicago  paid  $250  an  arc  before  the  public  plant  was  put  in  ten 
years  ago.  In  1893-4,  according  to  Chief  Barrett's  report,  with 
underground  wires  and  a  little  more  than  half  the  capacity  of  the 
plant  in  use,  there  were  1,110  full  street  arcs,  $620  investment  per 
arc,  and  $96  expenditure  per  arc-year,  which  the  chief  said  included 
such  full  repairs  and  improvements  as  to  cover  all  depreciation. 
Upon  these  conditions,  with  complete  public  ownership,  the  saving 
would  be  about  $150  per  arc  (or  $12."^  ])er  arc  if  interest  be  included), 
as  compared  with  the  price  charged  before  public  operation  began. 
Boston  paid  $237  per  arc  for  several  years  after  Chicago  built  her 
municipal  plant.  Chief  Barrett  reported  $52  labor  cost  per  arc. 
The  works  employed  two  shifts  with  short  hours  at  $2  a  day.  If 
the  plant  had  employed  one  shift  at  $35  to  $50  a  month,  as  the 
private  companies  did,  the  labor  cost  per  lamp  would  have  been 
$17,  and  the  whole  expenses  $51  per  lamp.  The  city  received  two 
services  from  its  lighting  plant — the  production  of  light  and  the 
lifting  of  labor.  The  former  alone  (which  is  all  it  received  for 
the  $250  it  used  to  pay  the  private  companies)  really  cost  it  $61 
per  lamp,  including  depreciation.  If  it  had  abandoned  the  other 
service  and  put  labor  back  on  the  private  enterprise  level,  it  could 
have  obtained  its  light  for  $61  a  lamp;  wherefore  the  other  $35 
(of  the  $96  total)  was  not  really  paid  for  light  but  for  the  elevation 
of  labor.  Besides  this,  the  plant  was  handicapped  by  changes  of 
the  common  labor  with  each  new  mayor,  and  by  refvisal  to  allow 
it  to  sell  commercial  light,  both  due  to  political  causes.  There 
were  18,500  arcs  and  433,400  incandescents  in  Chicago,  and  the  city 
plant  ran  but  1,110  lamps — small  plant,  run  half  capacity,  no  com- 
mercial lights,  no  day  load,  only  night  load  for  street  lamps,  and 
superintendent's  control  of  labor  hampered  by  politics,  and  yet 
it  was  saving  the  city  $125  per  lamp  year  at  the  very  least.  For 
commercial  lighting  the  private  companies  were  charging  and 
still  charge  1  cent  an  hour  per  16  candle  power  light,  or  over  font 
times  what  Chief  Barrett  said  the  city  could  do  it  for  if  allowed  to 
sell  light. 

Upon  the  Chicago  situation  I  wrote  as  follows  in  1895:  "It  is 
to  be  carefully  noted  that  the  fact  that  Chicago  does  not  manage 
her  light  plant  as  well  as  many  other  cities,  is  not  an  argument 
against  public  ownership  of  electric  light  any  more  than  the  fact 
that  she  does  not  manage  her  streets  as  well  as  many  other  cities 
is  an  argument  against  public  ownership  of  streets— it  is  an  argu- 
ment for  good  government  in  Chicago  in  each  case.  The  fact  that 
a  certain  married  man  does  not  act  as  well  as  other  married  men 
because  he  is  under  the  influence  of  an  evil  woman,  is  no  argument 
against  marriage  per  se,  nor  even  against  that  particular  marriage. 


rUBLIC  OWNERSHIP  OF  PUBLIC  UTILITIES.  251 

for  may  be  he  was  a  great  deal  more  under  the  influence  before  he 
was  married  than  after.  That  is  the  case  with  Chicago — compared 
with  herself,  before  and  after,  she  makes  a  good  showing  for  public 
ownership.  Whether  with  private  ownership  or  public,  she  is  worse 
off  than  most  other  cities  under  the  same  system.  But  she  is 
better  off  with  public  ownership  than  she  was  with  private.  Her 
record  with  public  ovsTiership  is  not  as  good  as  it  ought  to  be,  but 
it  is  far  better  than  her  record  with  private  ownership  of  cor- 
porations and  monopolies." 

Since  the  above  was  written  civil  service  reform  has  been  in- 
augurated in  Chicago,  and  this  vvdth  an  increase  of  350  arcs  have 
been  chief  factors  in  reducing  the  expenses  per  arc  from  $96  to 
$70  a  year  for  each  of  the  1,'(G0  arcs  in  1898.  The  present  chief, 
Edward  B.  •  Ellicott,  estimates  that  in  1899  improvements  -and  ex- 
tensions will  reduce  the  expenses  to  $60  per  arc,  and  the  total 
cost,  including  interest  and  depreciation,  to  about  $90  per  arc,  2,000 
candle  power  all  night  and  every  night,  underground  wires,  coal 
$2.50,  high  wages,  and  no  commercial  lights.  Near  the  close  of 
1898  the  city  plant  has  2,500  arcs  and  the  Halstead  station  had 
operating  expenses  of  $32.38  per  standard  arc  for  the  first  half  of 

1898,  though  not  manning  up  to  its  capacity  as  it  expects  to  do  In 

1899.  The  public  lighting  plant  in  South  Park,  Chicago,  under  the 
control  of  the  Park  Commissioners,  operates  -!&0  G-hour  full  arcs 
at  a  cost  of  $12  for  operation  and  $26.50  fixed  charges,  or  $68.50 
total  cost  with  coal  at  $3.90. 

Such  a  record  is  certainlj'  far  from  indicating  a  "failure"  for 
municipal  lighting  in  Chicago. 


Does  the  reader  see  reason  to  believe 

A.  That  private  monopoly  means 

1.  Privilege,  unequal  rights,  breach  of  democracy. 

2.  Congestion  of  wealth  and  opportunity. 

3.  Antagonism  of  interest  between  owners  and  the  pub- 

lie,  often  causing  extortion,  inflation,  fraud,  defi- 
ance of  law^,  corruption  of  government,  etc. 

4.  The  sovereign   power  of  taxation   in   private  hands 

and  the  ultra  sovereign  or  despotic  ]X)wer  of  tax- 
ation without  representation  and  for  private  pur- 
poses. 

B.  That  regulation  tho  capable  of  affording  some  relief,  can- 

not attain  a  complete  solution,  since  privilege,  congestion 
of  benefit  and  antagonism  of  interest  will  still  remain, 
while  the  motives  to  corruption,  fraud  and  evasion 
of  law  are  intensified  and  evil  is  driven  deeper  into  the 
dark. 

C.  That  puMic  ownership  in  the  true  sense   (see  p.  17)   will 

abolish  privilege  and  remove  the  antagonism  of  interest 
between  monopolists   and   the  public,  which   is  the  tap- 


252  THE  CITY  FOR  THE  PEOPLE. 

root  of  monopoly  evils.    Public  ownership  alone  can  at- 
tain the  maximum  diflFusion   of  benefit  and  realize  the 
ideals  of  democracy. 
If  you  do  see  this,  or  if  for  any  other  reason  you  favor  the  extension 

of  public  ownership,  will  you  do  what  you  can  to  secure  the 

following? 

1.  PUBLICITY  of  the  accounts  and  transactions  of  cor- 

porations, monopolies  and  combines  in  order  that 
we  may  know  exactly  what  the  real  investment,  op- 
erating' cost,  salaries,  wages,  depreciation  and  prof- 
its are.  The  law  should  provide  for  direct  inspec- 
tion and  audit  by  public  officers  and  for  full  pub- 
licity of  the  results.  The  public  which  supplies 
,  the  franchise  and  the  patronage  is  of  right  a  part- 

ner in  the  business  and  entitled  to  a  knowledge  of 
the  inside  facts.  This  knowledge  is  needed  to  fully 
prepare  the  way  for  the  following  moves. 

2.  EFFECTIVE     PROHIBITIONS     AND     PENALTIES 

AGAINST  STOCKWATEEING,  AND  INFIxATION 
OF  CAPITAL.  TAXATION  OF  THE  MAXl- 
M\TM  FACE  OR  MARKET  VALUE  OF  CORPORATE 
SECURITIES,  instead  of  allowing  the  companies  to 
tax  the  people  in  rates  on  the  basis  of  face  and 
market  values  of  stock  and  bonds,  while  paying 
back  to  the  public  a  small  tax  on  the  actual  value, 
or  in  most  cases  a  fraction  of  the  actual  value  of 
the  plant.  This  will  help  to  squeeze  the  inflation 
out  of  monopolistic  capital,  especially  if  the  tax 
rate  be  made  progressively  higher  in  proportion  to 
the  width  of  separation  between  the  maximum  face 
or  market  capitalization  and  the  structural  value 
of  the  "plant.  This  measure  will  have  the  additional 
advantage  of  enlarging  the  public  revenues  during 
the  process  of  cutting  down  overgrown  capitaliza- 
tion. 

3.  REDUCTION   OF   RATES   by   legislatures,   councils, 

commissions,  etc.,  to  the  point  where  (after  paying 
operating  cost,  depreciation  and  taxes)  they  will 
yield  simply  a  reasonable  profit  on  the  actual  pres- 
ent value  of  the  capital  the  owners  have  put  into 
the  business.  This  will  check  extortion,  diminish 
-the  funds  available  for  corruption  and  wealth  con- 
gestion, squeeze  all  the  remaining  water  out  of 
corporate  capital  and  prepare  the  way  for  public 
purchase  at  reasonable  prices.  (The  amount  the 
'  owners  have  put  into  the  business,   less   deprecia- 

tion.) 

4.  PROGRESSIVE    TAXATION   of    large    incomes,    in- 

heritances, land  values  and  other  properties  ex- 
ceeding a  moderate  individual  holding.     This  will 


PUBLIC  OWIN'EESHIP  OF  PUBLIC  UTILITIES.  253 

help  to  check  the  concentration  of  wealth,  dimin- 
ish the  corruption  fund,  return  to  the  people  a  part 
of  the  money  unfairly  taken  from  them  in  monop- 
oly taxes,  etc.,  and  provide  ample  funds  for  the 
public  purchase  or  construction  of  g-as  and  electric 
plants,  street  railways,  telephone  systems,  etc.  By 
perfectly  just  and  lawful  methods  we  can  meet  the 
cost  of  buying  the  monopolies  by  making  the  mo- 
nopolists pay  that  cost  out  of  the  monies  they 
have  captured  from  the  people  thru  unearned  rents, 
excessive  rates  and  unjust  legislative  grants;  we 
can  do  it  by  means  of  progressive  taxes  levied  in 
accordance  with  the  principles  laid  down  by  Judge 
Cooley,  John  Stuart  Mill,  Francis  A.  Walker  and 
other  eminent  authorities,  culminating  in  the  equi- 
table maxim,  "Equality  in  taxation  means  equality 
of  sacrifice." 

5.  DIRECT    LEGISLATION    AND    THE    MERIT    SYS- 

TEM OF  CIVIL  SERVICE  to  secure  public  owner- 
ship of  the  government  and  provide  the  best  foun- 
dations for  real  public  ownership  of  industrial  mo- 
nopolies.^ 

6.  THE  EXTENSION  OF  PUBLIC  OWNERSHIP  AND 

CO-OPERATIVE  INDUSTRY  by  purchase  of  exist- 
ing monopolies  or  construction  of  public  utilities, 
and  bj'  favoring  profit-sharing,  labor-copartnership, 
co-operative  companies  and  federations,  consumer's 
leagues,  and  everything  that  looks  toward  union 
of  effort  for  the  good  of  all.^  None  are  m.ore  in- 
terested in  these  movements  than  the  wealthy,  for 
they  mean  evolution  instead  of  revolution  .(See  Ap- 
pendix II,  E  2.) 


^  Full  public  ownership  of  the  government  logically  precedes  public 
ownership  of  industrial  monopolies,  but  as  each  tends  to  bring  the  other, 
we  should  work  for  both  and  neglect  no  opportunity  of  obtaining  the  latter 
under  reasonable  conditions  even  the  direct  legislation  and  the  merit 
system  are  not  immediately  attainable.  In  an  Anglo-Saxon  community 
generally,  a  public  title  to  important  business  interests  is  one  of  the  surest 
means  of  rousing  the  people  to  demand  direct  legislation  and  the  merit 
system  to  make  the  public  title  a  real  public  ownership. 

*  There  are  two  general  methods  of  arriving  at  true  coordination  and 
union  of  effort;  (1),  by  voluntary  individual  action,  crystallization  of  workers 
and  consumers  into  co-operative  groups,  and  gradual  expansion  and  federa- 
tion of  these  groups,  till  the  whole  community  is  included;  (2),  b.v  public 
action  originating  an  industrial  organization  or  taking  over  an  organization 
already  effected.  The  ultimate  results  of  the  two  methods  are  the  same. 
They  work  toward  the  same  end.  At  the  limit  they  are  identical.  In  a 
thoroly  democratic  community  voluntary  co-operation  merges  into  public 
ownership,  and  the  growth  of  co-operation  must  inevitably  create  a  thoroly 
democratic  community.  In  such  a  community  without  aristocrats  or  slums, 
if  every  employee,  user  or  person  of  full  age  and  discretion  directly  affected 
by  the  street  "railways  of  a  city  should  own  a  share  and  have  a  voice  in 
their  control,  it  would  amount  substantiall.v  to  public  ownership  under 
direct   legislation,    proportional    representation  and  equal  suffrage. 

The  methods  differ  as  to  their  special  fields  of  application.  One  is 
peculiarJy  adapted  to  the  development  of  Industries  in  which  individual 
initiative  has  free  scope;  the  other  to  industries  in  which  the  transforma- 
tion to  co-operative  forms  is  rendered  specially  diflBcult  by  the  power  and 
selfishness  of  Intrenched   monopoly. 


254  THE  CITY  FOE  THE  PEOPLE. 

In  agriculture,  manufactures,  and  commerce  voluntary  co-operation  may 
attain  most  excellent  results,  building  solid  tissue  by  the  affinities  of  the 
Individual  atoms,  and  molding  men,  under  conditions  of  the  most  perfect 
liberty  and  thru  the  attractions  of  clearly  appreciated  personal  interest, 
toward  the  co-operative  nature,  thought,  feeling  and  conscience,  so  essen- 
tial to  the  complete  success  of  co-operative  institutions.  Wherever  industry 
Is  free  from  the  pressure  of  monopoly;  wherever  monopoly  can  be  prevented 
or  broken  up  or  regulated  so  as  to  permit  a  reasonably  practicable,  smooth, 
and  rapid  approach  to  united  Industry  thru  co-operative  crystallizations, 
expansions  and  federations,  every  effort  should  be  made  to  rouse  the  people 
to  the  importance  of  forming  co-operative  groups  that  each  of  the  gri-at 
methods  may  do  Its  appropriate  work  in  the  industrial  reorganization  of 
society.  (Read  Henry  D.  Lloyd's  "Labor-Copartnership,"  and  N.  P.  Oilman's 
"Co-operation  and  Profit-Sharing,"  and  write  to  "The  Consumer's  League," 
of  New  York,  for  their  publications).  Even  monopoly  viay  be  transformed 
by  Individual  action  where  the  monopolists  can  be  persuaded  to  open  the 
doors  to  labor-copartnership  and  citizen  copartnership,  aiming  at  diffusion 
of  public  ownership  for  the  public  good.  It  Is  a  rare  thing  however  for  a 
monopolist  to  get  industrial  religion.  And  in  dealing  with  monopolies, 
especially  those  that  are  strongly  intrenched  and  constitute  sources  of 
corruption  and  congestion,  the  short-hand  method  of  public  ownership  with 
payment  out  of  earnings  and  progressive  taxes,  offers  many  practical  advan- 
tages and  Is  clearly  the  line  of  least  resistance  In  this  country  now.  Its 
Immediate  and  powerful  effects  as  an  equalizer  or  eradicator  of  unjust 
advantage,  place  it  In  hearty  accord  with  democratic  sentiment,  and  form 
for   it   a   vigorous    alliance   with    democratic   thot   and  action. 

Public  ownership  is  the  highest  form  of  co-operative  industry.  It  is 
better  for  the  ownership  and  control  of  a  street  railway  or  other  monopoly 
to  be  diffused  among  a  thousand  men  than  to  have  It  concentrated  in  one 
man  or  a  dozen  men.  It  is  still  better  to  have  the  ownership  and  control 
diffused  among  all  the  users  and  employees,  best  of  all  that  it  should  be 
equally  diffused  thruout  the  whole  citizenship  affected.  That  only  is  com- 
plete democracy.  Public  ownership  is  the  form  of  co-operation  that  attains 
the  full  ideal  of  diffusion  making  all  citizens  equal  partners  and  admitting 
future  generations  to  the  inheritance  of  past  accumulations,  inventions, 
discoveries  and  social  developments  upon  a  plane  of  perfect  equality  and 
impartiality.  In  many  cases  it  is  clearly  wise  to  go  at  once  to  the  ultimate 
form  by  public  purchase  or  construction,  especially  where  oppressive  and 
deeply  rooted  monopoly  needs  to  be  speedily  overcome,  or  when  important 
public  Interests  are  Involved  of  a  nature  not  likely  to  be  adequately  cared 
for  by  anything  short  of  public  action,  or  where  the  resistance  to  evolution 
on  the  line  of  Individual  co-operation  is  very  much  greater  than  the 
resistance  to  honest  and  intelligent  public  action. 


Chapter  II. 
DIKECT  LEGISLATION. 

lu  early  days  the  legislative  function  w|[s  exercised  by  the 
whole  body  of  enfranchised  citizens  assembled  for  the  purpose. 
The  laws  of  the  commonwealth  were  made  by  the  voters  di- 
rectly, in  substantially  the  same  way  that  the  laws  of  a  New 
England  town  are  made  to-day.  But  after  a  time  the  body 
of  free-men  became  too  large  to  meet  in  this  way,  and  a  sys- 
tem of  law  making  by  delegates  was  adopted.  Towns  and 
districts  elected  men  to  represent  them  in  legislative  council, 
and  govemmjent  by  representatives  took  the  place  of  gov- 
ernment by  the  people  except  in  respect  to  the  local  affaii-s 
of  towns  that  possess  the  town-meeting  system. 

The  change  from  legislation  by  the  people  to  legislation 
by  final  vote  of  a  body  of  representatives  chosen  for  a  speci- 
fied term,  was  a  transformation  fraught  with  the  most  mo- 
mentous consequences.  Under  the  former  system  the  people 
had  complete  control  of  legislation.  No  laws  were  passed 
that  the  people  did  not  want,  and  all  laws  were  passed  that 
the  people  did  want.  But  under  the  delegate  or  representa- 
tive-final-vote system  this  is  not  true.  The  representatives 
can  and  do  make  and  put  in  force  many  laws  the  people  do 
not  desire,  and  they  neglect  or  refuse  to  make  some  laws  the 
people  do  desire.  The  people  cannot  command  or  veto  their 
action  during  their  term  of  office.  The  representatives  are 
tiie  real  masters  of  the  situation  for  tiie  time  being.  Between 
elections  the  sovereign  power  of  controlling  legislation  is  not 
in  the  hands  of  the  people,  but  in  the  hands  of  a  small  bodv 
of  men  called  representatives.  It  appears  therefore  that  the 
change  from  legislation  by  the  voters  in  person  to  legislation 
by  delegates  was  a  change  from  a  real  democracy  to  an  elec- 
tive aristocracy ;  from  a  continuous  and  effective  popular  sov- 
ereignty to  an  intermittent,  spasmodic  and  largely  ineffective 

255 


256         GOVERNMENT  BY  AND  FOR  THE  PEOPLE. 

popular  sovereignty;  from  a  government  of  the  people,  by  the 
people  and  for  the  people,  to  a  govemment  of  the  people,  by 

a  few  for the  people?     '■ —  yes,  sometimes,  but 

too  often  for  the  legislators,  and  the  lobbies,  bosses,  rings, 
monopolies,  and  party  leaders  who  control  them.  It  was  a 
change  in  which  self-govemnient  was  fettered  and  the  soul  of 
liberty  was  lost     » 

What  then  shall  be  done?  Shall  we  give  up  the  represen- 
tative principle?  Clearly  not.  Division  of  labor  and  expert 
service  are  as  essential  in  law  making  as  in  any  other  business. 
It  is  not  representation,  but  misrepresentation  that  is  wrong — 
not  the  representative  system  per  se,  but  the  unguarded  and  im- 
perfect form  of  it  in  use  at  present.  What  we  want  is  not  a 
body  of  legislators  beyond  the  reach  of  the  people  for  one, 
two,  four  or  six  years,  as  the  case  may  be,  but  a  body  of  legis- 
lators subject  at  all  times  to  the  people's  direction  and  con- 
trol. It  is  good  to  have  powerful  horses  to  draw  your  load, 
but  it  is  well  to  have  bit  and  rein  and  whip  if  they  are  frisky 
or  likely  to  shy  or  balk.  It  is  good  to  choose  strong  men  to 
manage  municipal  and  State  affairs,  but  it  is  well  too  to  pro- 
vide the  means  to  hold  them  in  check  or  make  them  move  at 
the  people's  will. 

The  problem  is  to  keep  the  advantages  of  the  representa- 
tive system — its  compactness,  legal  wisdom,  experience,  power 
of  work,  etc.,  and  eliminate  its  evils,  haste,  complexity,  cor- 
ruption, error,  over  legislation  and  under  legislation — depar- 
ture from  the  people's  will  by  omission  or  commission. 

The  solution  lies  in  a  representative  system  g-uarded  by 
constitutional  provisions  for  popular  initiative,  adoption,  veto, 
and  recall.  Elect  your  councilmen  and  legislators  and  let 
them  pass  laws  exactly  as  they  do  now,  except  that  no  act 
but  such  as  may  be  necessarv'  for  the  immediate  preserva- 
tion of  the  public  peace,  health  or  safety,  shall  go  into 
effect  until  thirty  days  after  its  passage  in  case  of  a  city  ordi- 
nance, or  ninety  days  in  case  of  a  state  law.  If  within  the 
said  time  a  certain  percentiage  of  the  voters  of  the  city  or 
state  (say  five  or  ten  per  cent.)  sign  a  petition  asking  that 
the  law  or  ordinance  lie  submitted  to  the  people  at  the  polls, 


THE  INITIATIVE  a:xd  kefekendum.  257 

let  it  be  so  submitted  at  tlie  next  regiilar  election,  or  at  a  special 
election  if  fifteen  or  twenty  per  cent,  of  Uie  voters  so  petition. 
If  tlie  majority  of  those  voting  on  the  measure  favor  it,  it  be- 
comes a  law;  if  the  majority  are  against  it,  it  is  vetoed  by  the 
people. 

Let  it  be  further  provided  that  if  the  council  or  legislature 
neglect  or  refuse  to  take  any  such  action  by  ordinance,  law, 
contract,  franchise,  etc.,  as  the  people  desire,  the  matter  may 
be  brought  forward  for  prompt  decision  by  a  petition  signed 
by  a  reasonable  percentage  (say  five  or  ten  per  cent.)  of  the 
voters  of  the  city  or  state.  The  petition  may  simply  state 
the  general  purpose  and  scope  of  the  desired  measm-e,  leav- 
ing the  council  or  legislature  to  frame  a  bill  to  be  submitted 
to  the  voters;  or  it  may  embody  a  bill  or  ordinance,  where- 
upon the  petition,  with  the  bill  or  ordinance,  will  go  to  the 
council  or  legislature,  which  may  adopt  it,  reject  it,  pass  an 
amendment  or  substitute,  or  do  nothing — in  any  case  the 
proposed  measure  (together  with  the  action  of  the  council  or 
legislature  upon  it,  if  any)  will  go  to  the  polls  for  final  de- 
cision at  the  next  election,  or  earlier,  if  a  sufficient  number 
(say  fifteen  or  twenty  per  cent.)  of  the  voters  so  petition. 

These  methods  of  law  making  by  the  people  are  called 
Direct  Legislation,  which  includes  two  main  processes  known 
as  the  Initiative  and  the  Referendum.* 


♦The  referendum  may  be  obligatory  or  optional,  general  or  partial,  ex- 
ecutive, legislative,  judicial  or  petitional.  Under  the  general  obligator]/ 
referendum  all  laws  except  emergency  measures  (acts  necessary  for  the  im- 
mediate preservation  of  the  public  health,  peace  or  safety)  must  be  submit- 
ted to  the  people;  no  petition  is  needed;  the  submission  Is  as  much  a  part 
of  the  process  of  law  making  as  the  submission  to  the  mayor  or  governor. 
The  cantons  of  Berne  and  Zurich,  in  Switzerland,  have  had  this  system 
in  operation  for  thirty  years  with  admirable  results.  Under  the  partial 
obligator]/  referendum  all  laws  of  a  certain  class  must  be  submitted  to  the 
people.  For  example,  constitutional  amendments  mvst  be  submitted  to  the 
voters  in  every  one  of  our  states  except  Delaware,  and  in  Missouri,  Cali- 
fornia, Washington,  Minnesota  and  Louisiana  freehold-charters  must  go 
to  the  polls.  The  purchase  or  erection  of  water  works,  gas  and  electric 
plants,  telephones  and  street  railways,  the  issue  of  bonds  for  road.s,  scliools 
and  other  municipal  movements  of  large  Importance  are  usuall.v  jru.nded 
by  the  obligatory   referendum.    (See  Chapter  III.    Comments  on   Table  II.) 

The  optional  referendum  provides  for  a  vote  of  the  people  on  any  measure 
in  reference  to  which  such  vote  is  demanded  by  petition  of  a  reasonable 
percentage  of  the  voters,  or  by  some  officer  or  body  In  whom  such  discretion 
is  vested. 

The  exccutire  referendum  is  where  the  mayor  or  governor  or  president 
has  a  right  to  refer  a  measure  to  the  voters  for  decision. 

The  legislative  referendum  is  where  one  house,  or  a  given  percentage 
Csay  twent.v-flve  per  cent.)  of  one  or  of  both  houses  ma.v  refer  a  measure 
to  the  people  for  decision,  or  where  a  measure  upon  which  the  houses  disa- 
gree must  be  referred  to  the  voters. 

The  jmlividl  referendum   is  where  a   law  that  has  been  declared  uncon- 
17 


258  THE   END   OF   CORRUPT   LEGISLATION. 

The  Initiative  is  the  proposal  of  a  law  by  the  people. 

The  Referendum  is  the  submission  of  a  law  to  the  people 
at  the  polls  for  approval  or  rejection. 

By  these  means  the  people  can  start  or  stop  legislation  at 
will.  By  initiative  petition  they  can  bring  a  measure  forward 
for  discussion  and  decision.  They  can  repeal  an  old  law  or 
amend  it,  or  enact  a  new  one,  and  progress  is  no  longer  barred 
by  the  interest  or  inertia  of  tlie  legislators  or  councilmen,  nor 
by  the  weight  and  wealtili  of  corporate  monopoly.  Moreover, 
the  people  can  prevent  had  legislation  as  well  as  secure  good 
legislation.  If  the  legislature  passes  a  law  the  people  dialike 
they  can  call  for  a  referendum  and  veto  the  measure  at  the 
polls  before  it  goes  into  effect,  whereas  at  present  the  law  goes 
into  effect  whether  the  people  like  it  or  not,  and  they  have  to 
wait  till  they  can  elect  a  new  legislature  to  repeal  the  ob- 
noxious act  (after  the  damage  is  largely  done,  perhaps),  and 
if  the  said  act  is  a  franchise,  very  likely  it  cannot  be  re- 
voked at  all  when  once  allowed  to  take  effect — ^a  franchise 
grant  to  a  private  company  being  a  contract  within  tlie  pro- 
tection of  the  Federal  Constitution,  a  fact  which  makes  it 
particularly  necessary  that  franchise  grants  (especially  ii'  un- 
qualified by  a  reservation  of  the  right  to  revoke  at  %vill)  should 
be  submitted  to  the  people. 

Does  not  the  Direct  Legislation  Amendment  to  the  Rep- 
resentative System  solve  the  problem?  Does  not  the  guarded 
representative  system  retain  the  benefits  and  eliminate  tlie 


Btltutional  must  be  submitted  to  the  people  for  the  final  decision  under  a 
flxed  rule  to  that  eflfect,  or  may  be  so  submitted  by  the  court,  or  bv  a  speci- 
fied number  of  the  judges. 

The  petitional  referendum  is  where  the  submission  is  called  for  by  peti- 
tion of  the  voters.  A  petition  signed  by  the  required  number  of  voters  is 
imperative,  not  a  mere  request,  but  a  compelling  mandate.  It  is  the  peti- 
li  ^LJ^^I^  *"^  optional  referendum,  or  the  system  in  which  the  option 
lies  With  the  people,  that  is  usually  meant  when  the  word  "referendum"  is 
used  without  explanation. 

»u  J'  ^','1.  ^\  ^^^^  ^^^^  executive,  legislative  or  judicial  referenda  mav  be 
either  obligatory  or  optional,  general  or  special,  and  that  the  petitional 
method  can  be  used  to  repeal  an  old  law  or  veto  a  new  one,  or  confirm  a  law 

f^I"  .nH^»"''ffl''°^-'^°"*''i'^^J  *'■■  <^^"  ^o""  "^"^  election  to  remove  a  legislative  or 
executive  oflicer  or  a  judge  from  office. 

nr  Jf*'Hf£^^"''f,J*'I®."*  ^^^  P*'"^  ™*-^  ^^  fl^fd  at  a  majority  of  those  voting, 
vnt^  mil  h^''"",'''^.,*''  '■''^•''  «'  ""  three-fifths,  two-thirds,  or  three-fourths 
vote  may  be  required. 

f,rnnu''tJ'KJt  "'"'''ereiidum"  is  often  used  in  the  sense  of  the  right  of  the 
Statute  nrZLflr"'^''  «"'"?'«''<«  '«  f^em,  and  it  is  also  nsed  to  designate  a 
f«nirt  In  «f.i  .'/""""  «'"^»<^"»f««  seeiiring  this  right.  The  word  "initiative" 
ntended  manner.     The  context  will  usually  show  which  sense  is 


THE  POPULAE  VETO.  259 

evils  of  the  unguarded  representative  system?  The  city  or 
state  will  have  its  body  of  legal  experts,  trained  advisors,  and 
experienced  legislators  as  at  present  They  will  continue  to 
do  most  of  the  law-making  as  they  do  now,  but  their  power 
to  do  wrong  or  stop  progress,  their  power  to  do  as  they  please 
in  spite  of  the  people,  will  be  gone.  The  city  and  state  will 
have  the  service  of  its  legislators  without  being  subject  to 
their  mastery.  If  the  delegates  act  as  the  people  wish,  their 
action  will  not  be  disturbed.  If  they  act  against  the  people's 
wish,  the  people  will  have  a  prompt  and  effective  veto  by 
which  they  can  stop  a  departure  from  their  will  before  any 
damage  is  done.  If  the  delegates  do  not  act,  the  people  can 
put  the  machinery  in  motion  and  bring  the  matter  to  decision. 
Wben  the  delegates  truly  represent  the  people  their  action 
will  stand;  when  they  fail  to  represent  the  people  their  de- 
cision will  be  subject  to  prompt  revision.  To-day  their  acts 
that  do  not  represent  the  people's  will  stand  as  firm  during 
their  term  of  office  aa  the  acts  that  do  represent  the  popular 
will.  Is  this  right?  Is  it  right  that  the  people's  delegates 
should  be  able  to  impose  their  mil  upon  the  people  for  one, 
two,  four  or  six  years?  Is  it  right  that  the  acts  of  delegates 
contrary  to  the  people's  vdll  should  stand  in  spite  of  the  peo- 
ple? Is  such  a  delegate  system  really  worthy  to  be  called  a 
"representative  system?"  Is  a  system  properly  termed  rep- 
resentative which  may  misrepresent  as  much  as  or  more  than 
it  represents,  and  in  which  there  is  no  adequate  means  of  de- 
termining whethier  its  action  is  representative  or  not?  Is  not 
the  right  to  a  referendum,  the  right  of  the  people  to  prevent 
the  delegates  from  misrepresenting  them,  absolutely  neces- 
sai*y  to  entitle  the  delegate  system  to  the  name  "representa- 
tive?" 

Self    Government. 

There  is  a  confused  impression  in  the  minds  of  many  that 
the  choosing  of  rulers  is  the  substance  of  freedom  and  self- 
government;  that  a  people  who  elect  their  law  makers  are 
reaUy  making  the  laws.  But  it  is  not  so.  The  selection  of  a 
governor  is  not  governing,  anv  more  than  the  selection  of  a 

v.j 


260  THE  OPEN  DOOE  OF  PEOGEESS. 

captain  is  commanding,  or  the  choice  of  an  organist  or  pianist 
is  playing.  The  choice  of  a  legislature  is  not  self-government 
any  more  tian  the  selection  of  a  jailor  or  the  choice  of  a  jail 
is  freedom. 

An  apprentice  may  be  allowed  to  choose  the  master  to 
whom  he  is  to  be  bound  for  years,  and  a  lunatic  or  minor  who 
is  deemed  incapable  of  governing  his  own  affairs  may,  never- 
theless, have  the  privilege  of  selecting  the  guardian  who  is  to 
govern  him.  A  people  may  elect  their  rulers  and  yet  live  under 
an  absolute  despotism.  This  was  true  in  old  Rome  when  the 
King  was  elected  by  the  whole  body  of  citizens.  It  is  true 
now  of  the  AVestem  Fulahs  in  Africa  and  the  Kamtscadales 
in  Asia,  who  elect  their  chiefs,  but  after  election  must  obey 
the  head  man's  orders.  It  is  true  in  many  of  the  cities  of 
America,  where  the  people  go  to  the  polls  year  after  year  in 
the  fond  delusion  that  they  have  a  voice  in  the  administra- 
tion of  public  affairs,  whereas,  in  reality,  a  ring  of  rascals 
holds  the  city  in  its  grasp,  and  whichever  nominee  the  citi- 
zens may  vote  for,  the  ring  will  rule  the  same  as  before,  en- 
acting its  private  purposes  into  law,  pouring  the  public 
moneys  into  its  purse,  filling  appointments  with  its  creatures 
to  perpetuate  its  power,  and  controlling  the  city  for  its  plun- 
der, regardless  of  the  interests  or  the  wishes  of  the  people. 
It  is  true  in  the  nation  and  the  states  as  well  as  in  the  cities. 
The  rule  of  a  congress  or  legislature  that  does  the  ^rill  of  a 
railroad  or  syndicate  of  gamblers  in  opposition  to  public  opin- 
ion and  the  good  of  the  commonwealth  is  a  despotism  as  truly 
as  ever  the  rule  of  a  Tarquin  or  a  Caesar  was.  Napoleon  him- 
self, the  arch-despot  of  modern  times,  was  elected  to  his  im- 
perial power. 

The  duration  of  a  government  or  lease  of  power  has  noth- 
to  do  with  its  character  as  free  or  despotic.  A  control  that 
lasts  but  a  single  year  may  be  as  far  from  freedom  as  one 
that  endures  for  a  life  time;  and  a  people  electing  their  rulers 
each  year  to  govern  according  to  their  own  sweet  will  majf 
be  no  better  off  than  a  nation  which  elects  a  sovereign  to 
wear  the  crown  for  life.  The  essence  of  despotism  is  the 
control  of  others  for  the  benefit  of  the  controller,  regardless 


THE    POPULAR   INITIATIVE,  261 

of  the  welfare  of  die  controlled.  The  Tweed  administration 
was  a  desjwtism  altho  elected  to  po-^'er.  So  was  the  gas  legis- 
lation of  the  Philadelphia  councils  leasing  the  city  works  to 
a  powerful  and  corrupt  ring,  in  spite  of  the  well-known  and 
vigorously-manifested  opposition  of  tlie  great  mass  of  the 
people.  So  was  the  action  of  the  Black  Congress  that  gave 
away  the  people's  franchises  and  money  and  lands  to  tlie 
schemei*s  who  projected  the  Pacific  roads.  Men  of  America, 
do  you  govern  the  country?  Is  it  your  will  that  is  done  in 
Senate  chamber  and  council  hall,  or  is  it  the  will  of  the  oil- 
trust,  sugar-trust,  whiskey-trust,  tlie  railways  and  the  bank- 
ers? He  is  the  sovereign  whose  will  is  in  control.  You  are 
not  sovereign,  for  many  things  you  wish  to  have  done  remain 
undone,  and  many  things  are  done  that  you  do  not  wish  to 
have  done.  Politicians  call  you  sovereigns  in  their  campaign 
speeches.  But  it  is  not  true.  You  have  the  privilege  of  choos- 
ing which  of  two  or  three  sets  of  sovereigns  you  will  have 
to  rule  over  you,  but  you  are  not  sovereigns  yourselves.  The 
men  you  elect  are  your  masters  during  their  term  of  office. 
You  come  to  them,  not  as  sovereigns  to  their  servants,  but 
as  subjects,  with  humble  petitions,  which  you  are  not  sur- 
prised to  see  them  reject  or  ignore.  They  give  away  your 
property  and  you  are  helpless;  they  pass  laws  without  your 
approval  and  against  your  interest  and  you  cannot  prevent 
their  taking  effect;  they  refuse  to  take  action  on  your  most 
pressing  needs,  and  you  are  powerless  until  the  expiration  of 
their  deeds  of  sovereignty  gives  you  an  opportunity  to  choose 
a  new  lot  of  masters  to  rule  you  for  another  term.  This  is 
not  a  government  by  the  people,  but  a  government  by  an  aris- 
tocracy of  office  holders  elected  by  the  people.  You  call  your 
rulers  "representatives;"  and  to  some  extent  they  are  such. 
Honesty  and  coincidence  of  interest  do  lead  them  to  canw 
out  your  will  to  some  extent,  but  they  are  free  to  legislate 
for  their  own  private  interests  or  the  interests  of  those  who 
furnish  inducements  for  action  in  their  behalf,  and  the  peo- 
ple cannot  prevent  it.  Representatives  have  their  uses.  You 
need  the  aid  of  specialists  in  legislation,  but  you  do  not  need 
to  part  with  your  rightful  control  of  your  own  affaire  when 


262  THE  CITY  FOB  THE  PEOPLE. 

you  seek  their  aid  and  council  any  more  than  you  need  to  part 
with  it  in  dealing  with  a  tailor,  a  doctor,  or  an  architect. 

It  is  well  to  employ  an  architect  when  you  are  going  to 
luild,  but  you  never  would  think  of  giving  him  power  to 
draw  up  his  plans  and  put  thean  into  execution  without  sub- 
mitting them  to  you  for  approval,  much  less  would  you  give 
him  a  right  to  i-efuse  to  alter  his  plans  in  accordance  with 
your  request,  or  to  decide  how  much  of  your  money  should  be 
spent  without  recourse  to  youfor  assent,  or  toexpend  your  funds 
for  a  structure  which  you  strongly  disapproved  and  against 
which  you  loudly  protested.  You  would  avail  yourself  of 
the  architect's  skill  in  the  drawing  of  plans,  but  you  would 
feel  free  to  tell  him  what  sort  of  a  house  you  desired,  and 
would  expect  him  to  act  upon  your  directions  and  suggestions, 
and  to  submit  his  plans  to  you  for  approval  or  rejection  be- 
fore beginning  to  build  on  your  land  and  on  your  credit  or 
with  your  cash.  In  this  case  you  would  continue  to  control 
your  affairs  while  availing  yourself  of  the  architect's  wisdom 
And  skill.  In  the  first  case,  the  control  of  your  affairs  would 
b^  in  the  architect,  not  in  you. 

It  is  the  same  with  legislation.  Doubtless  it  is  well  to  seek 
the  aid  and  council  of  men  well  versed  in  law  and  skilled  in 
the  phrasing  of  statutes,  but  it  is  iijot  necessary  to  give  these 
men  the  power  to  ignore  our  petitions,  nor  the  right  to  put 
the  laws  they  plan  in  execution  without  allowing  us  time  and 
opportunity  to  express  our  disapproval  and  rejection  if  we 
wish  to  do  so.  There  are  cases  of  extreme  urgency,  in  which 
the  architect  or  the  legislative  agent  must  be  permitted  to 
act  without  waiting  to  consult  his  principal.  Fire,  flood,  or 
other  unforeseen  event  may  make  it  imperative  that  the 
builder  should  act  on  his  own  judgment,  without  an  instant's 
delay.  Likewise  an  unforeseen  event  endangering  the  public 
saSefty  may  make  it  needful  for  our  legislators  to  act  at  once. 
But  as  a  rule  there  is  time  for  consultation,  and  it  ought  to  be 
required.  If  you  do  not  require  it,  if  you  allow  your  "rep- 
resentatives" to  put  their  plans  into  execution  without  an 
opportunity  on  your  part  to  reject  them  or  modify  them,  you 
practically  place  the  control  of  your  affairs  in  the  said  repre- 


DIRECT  LEGISLATION.  263 

tsentatives  for  the  term  of  their  electioii,  and  self-government 
on  your  part  ceases  during  the  said  term. 

We  do  not  want  a  government  by  the  people  without  rep- 
resentatives, nor  a  government  by  representatives  ^vithout  the 
people;  but  a  government  by  the  people  with  the  aid  and  ad- 
vice of  representatives,  or  what  is  essentially  the  same  thing, 
a  government  by  representatives  acting  as  the  people's  agents, 
subject  at  all  times  to  the  orders  and  inscructions  of  the  pe-. 
pie,  and  to  total  revocation  of  authority  at  their  mil.  The 
first  is  impossible  in  a  complex  society;  the  second  is  an  aban- 
donment of-  the  principle  of  self-government;  the  third  com- 
bines the  good  qualities  of  the  representative  system  with  a 
real  sovereignty  in  the  people — it  secures  the  economies  and 
values  of  representation  without  sacrificing  justice,  liberty 
and  self-government.  It  uses  the  legislator,  like  the  architect, 
to  draw  up  the  best  plans  his  knowledge  permits;  it  gives  him 
a  right,  like  the  architect's  in  cases  of  extreme  emergency,  to 
act  upon  his  own  unaided  judgment;  but  requires  him  at  all 
other  times  to  submit  his  ideas  to  his  principal  before  putting 
them  in  practice,  and  holds  him  at  all  times  subject  to  the 
orders  and  suggestions  of  his  principal.  Such  is  clearly  the 
ideal  management  of  political  affairs  as  well  as  of  business 
affairs.  Indeed  politics  is  itself  nothing  but  business;  the 
people's  business,  it  ought  to  be,  and  under  their  control. 
We  have  already  seen' how  tbis  intimate  and  continuous  con- 
trol of  their  representatives  by  the  people  can  be  secured  in 
place  of  the  present  subjection  of  the  people  to  their  repre- 
sent-atives  during  successive  periods.  It  is  a  simple  matter  of 
extending  the  use  of  the  referendum. 

The  Refekendum  ix  Use  in  America. 

The  Referendum  is  already  a  Fundamental  Fact  in  American  Gov- 
ernment and  a  Settled  Principle  in  our  Legislative  System. 

The  suggested  improvement  of  our  representative  system,  to 
make  it  harmonize  with  the  law  of  seK-govemment  does  not 
require  the  adoption  of  any  new  principle  or  method.  Both 
the  initiative  ana  the  referendum  have  been  in  constant  use 
in  America  ever  since  the  Mavflower  crossed  the  sea.     All 


264        GOVERNMENT  BY  AND  FOR  THE  PEOPLE. 

that  is  needed  is  an  extension  of  established  principles  and 
methods  to  eases  quite  as  much  within  their  reason,  purpose 
and  power  as  those  to  which  they  are  now  applied. 

In  many  of  our  towns  we  have  the  ideal  of  Democracy  in 
respect  to  local  affairs.  They  are  controlled  by  the  people 
directly.  Any  ten  men,  by  petition  to  the  selectmen,  may 
secure  the  insertion  of  an  item  in  the  warrant  for  a  town 
meeting,  and  so  bring  the  matter  befoi'e  the  town.  Any  one 
may  make  a  motion  or  enter  the  discussion,  and  all  may  vote. 
The  town  meeting  plan  is  the  Initiative  and  Referendum  ap- 
plied  to  town  business. 

Direct  Legislation  is  also  used  by  all  our  states,  except  Del- 
aware, in  making  and  amending  their  constitutions,  from 
which  it  would  seem  that  our  citizens  are  already  convinced 
that  it  is  the  best  possible  plan,  of  legislation,  since  it  is  the 
one  they  adopt  in  respect  to  their  highest  and  most  important 
law. 

At  first,  as  we  have  said,  there  was  no  other  sort  of  gov- 
ernment. For  nearly  twenty  years  after  the  founding  of 
Plymouth  Colony,  in  what  is  now  Massachusetts,  the  law 
making  was  done  in  primary  assembly  of  the  freemen  every 
quarter,  and  when  the  colony  greu  so  large  that  it  was  dif- 
ficult for  the  people  to  meet  in  this  way  four  times  a  year,  it 
was  provided  that  every  town  should  elect  two  delegates  to 
join  with  the  Bench  in  enacting  all  sudh  ordinances  as  should 
be  judged  good  and  wholesome,  and  that  the  whole  body  of 
citizens  should  meet  once  a  year  to  have  a  general  over-sight 
of  the  doings  of  the  delegates,  repeal  any  of  their  acts  that 
were  deemed  prejudicial  to  the  whole,  and  pass  such  new 
measures  as  might  be  needful  in  the  judgment  of  the  people. - 
That  was  the  referendum  almost  as  it  is  advocated  to-day.  It 
lasted  from  1638  till  1658,  and  in  a  modified  form  till  1680. 
but  it  was  lost  to  state  affairs  when  the  colony  was  united 
\vith  others  and  the  population  b^ame  too  large  to  meet  even 
once  a  year.  No  one  in  Massachusetts  seems  to  have  thot 
of  the  method  of  polling  the  whole  citizenship  on  specific 


Suffrfl^  i^'^^s.^c&tt'l^^^Jiy.T^^^^^  H^TaTo\"^^"''°    '""'^ 


THE    IXITIATIVE    AND    REFERENDUM.  265 

measures^  for  the  reason  may  be  that  in  those  primitive,  un- 
sophisticated times,  the  delegates  really  acted  yerj  nearly  as 
the  people  wished  them  to.  The  population  was  compara- 
tively homogeneous  in  interest,  the  disturbing  influence  of 
powerful  class  and  monopoly  interests  was  unknown,  and  the 
modem  politician  had  not  been  bom. 

Still  the  people  did  preserve  Direct  Legislation  in  town 
affairs  and  in  the  making  of  the  fundamental  law,  fondly 
dreaming  that  this  would  be  sufficient  to  prevent  any  possible 
deflection  of  wiley  representatives.  It  has  not  done  that,  but 
it  has  proved  itself  the  most  perfect  of  all  legislation.  Xo 
law-making  in  the  world  has  been  so  smooth,  so  wise,  so  effec- 
tive, so  free  from  taint  or  suspicion  of  class  interest  or  cor- 
ruption as  the  making  of  American  constitutions  and  the  leg- 
islation of  New  England  town-meetings.  Compare  the  honest, 
public-spirited,  effective,  progressive  and  economical  govem- 
meoit  of  a  Maine  or  Massachusetts  town  with  the  dishonest, 
selfish,  narrow,  ineffective,  non-progressive  and  extravagant 
governments  of  our  ring-ruled  cities,  and  you  will  get  some 
idea  of  the  natural  tendencies  of  the  two  systems — leaving 
the  law-making  power  with  the  people,  or  giving  it  to  a  limited 
number  of  men  to  play  with  as  they  please  for  a  specified  time. 
ISTo  other  part  of  the  country  can  be  compared  to  I^ew  Eng- 
land in  the  completeness  of  its  local  improvements,  yet  no- 
where is  the  debt  so  small  as  in  New  England  towns;  nowhere 
else  are  the  votei-s  so  well  informed;  nowhere  else  is  such 
ample  provision  made  for  the  education  of  children.^ 

Thomas  Jefferson  referred  to  the  town-meeting  as  "the 
wisest  invention  ever  devised  by  the  wit  of  man  for  the  per- 


*  In  other  places  the  thot  occurred  and  was  acted  upon.  In  the  seven- 
teenth century  the  fundamental  law  of  Rhode  Island  required  that  all  laws 
passed  by  the  general  assembly  should  be  referred  to  the  people,  and  this 
was  done  until  the  law  was  superseded  by  a  royal  charter.  In  reference 
to  the  early  constitution  of  Pennsylvania  Noah  Webster  says,  "I  cannot  help 
remarking  on  the  singular  jealousy  of  the  constitution  of  Pennsylvania, 
which  requires  that  a  bill  shall  be  published  for  the  consideration  of  the 
people  before  it  is  enacted  into  a  law,  except  in  extraordinary  cases."  and 
remarks  that  this  reduces  the  legislature  to  an  advisory  body.  In  Virginia 
Jefferson  drafted  a  provision  that  all  laws,  after  passing  the  legislature, 
should  be  voted  on  by  the  people,  and  advocated  it  as  a  part  of  the  state 
constitution,  but  it  was  defeated  for  fear  it  might  touch  slavery.  This  was 
the  referendum  in  Its  highest  form— the  obligatory. 

1  See  "Town  and  Village  Government,"  by  H.  L.  Nelson,  Harper's 
Monthly,  Vol.  83,  p.  Ill,  June,  1891,  contrasting  the  effects  of  the  New 
England  town-meetings  with  the  effects  of  the  village  government  in  states 
not  possessing  the  town-meeting. 


266  THE  END  OF  CORRUPT  LEGISLATION. 

feet  exercise  of  aelf-govemmeint  and  for  its  preservation." 
Prof.  John  Fiske  says  that  "Govermneoit  by  town-meeting  is 
the  form  of  government  most  effectively  under  watch  and 
control.  Everything  is  done  in  the  full  daylight  of  publicity. 
The  town-meeting  is  the  best  political  training  school  in  ex- 
istence. It  is  the  most  perfect  exhibition  of  what  President 
Lincoln  called  'govemment  of  the  people,  by  the  people  and 
for  the  people!' "  Prof.  Bryce  says,  "The  town-meeting 
has  been  the  most  perfect  school  of  self-government  in  any 
modem  country.  *  *  *  It  has  been  not  only  the  source, 
but  the  school  of  democracy." 

The  value  the  people  of  New  England  place  upon  their 
town-meeting  system  is  shown  by  the  tenacity  with  which 
they  cling  to  it,  refusing  to  have  their  towns  incorporated 
even  after  they  have  grown  to  unwieldy  size,  because  in  so 
doing  they  lose  the  town-meeting  and  pass  from  self-govern- 
ment into  the  hands  of  politicians.  .  For  this  reason  Paw- 
tucket,  Rhode  Island,  did  not  become  a  city  until  its  popu- 
lation came  close  to  20,000.  Brockton,  Massachusetts,  held 
off  until  it  was  listed  at  15,000.  North  Adams,  a  town  of 
more  than  16,000  inhabitants  and  4,000  voters  has  repeatedly 
refused  to  become  a  city.  Waltham,  Chicopee,  Pittsfield  and 
many  other  towns  bear  witness  to  the  same  strong  feeling. 
Massachusetts  has  only  thirty-two  incorporated  cities,  instead 
of  sixty  or  more,  as  she  would  have  under  the  regime  prevail- 
ing in  states  where  the  town-meeting  is  not  in  vogue. 

Brookline,  Massachusetts,  is  a  town  of  15,000  people.  It 
lies  within  the  metropolitan  district  of  the  city  of  Boston,  but 
is  not  a  part  of  Boston,  having  retained  its  government  in 
spite  of  its  situation  within  the  practical  limits  of  a  giant  city. 
The  contrast  between  the  city  of  Boston  and  that  of  Brook- 
line  is  a  startling  one.  Boston,  tho  better  governed  than 
8ome  other  cities,  has  its  corruption,  its  bosses,  rings,  spoils 
system,  arrogant  monopolies,  high  taxes  and  extravagant  ex- 
penditures—extravagant for  the  results  achieved— four  or 
five  times  as  much  as  tiie  English  city  of  Birmingham  spends 
te  obtain  as  good  or  better  results.^     In  Brookline  economy  is 

'Forum,  Nov..  '92.  p.  267;  see  also  No.  Amer.  Rev.,  v.  152.  p.  538. 


THE  POPULAR  VETO-  267 

a  fine  art,  and  tho  large  amonnts  ar©  spent  in  public  improve- 
ments and  on  the  magnificent  school  system,  the  taxes  are 
considerably  lower  than  in  Bostoai.  There  is  no  corruption, 
boss  rule,  ring  rule,  or  spoils  system  in  Brookline,  altho  the 
expenditm*es  amount  to  If  millions  a  year,  or  more  than 
the  expenditures  of  the  whole  state  of  j^-ew  Hampshire.  The 
town  is  governed  by  the  citizens  in  primary  assembly,  the 
town  meetings  averaging  eight  per  year.^  The  meetings  be- 
gin at  7.00  P.  M.,  and  are  usually  over  between  10  and  11 
P.  M.  Ample  notice  is  given  of  every  matter  to  be  considered 
at  the  meeting,  so  that  proposed  ordinances,  etc.,  may  be  fully 
discussed,  and  all  who  feel  interested  may  attend,  make  mo- 
tions, argue  and  vote.  Sometimes  a  large  number  of  voters 
attend  the  meetings,  but  usually  two  or  three  hundred  of  the 
best-informed  and  most  public-spirited  citizens  do  the  business, 
so  that  while  the  door  is  open,  for  the  whole  body  of  citizens 
to  take  part  in  the  decision  of  any  matter  that  comes  before 
the  town,  yet  the  actual  decision  in  each  case  is  generally  left 
by  tacit  assent  to  a  small  body  of  public-spirited  men  who 
have  taken  pains  to  inform  themselves  upon  the  questions  in 
issue — ^two  hundred  men  in  one  case,  perhaps  a  thousand  in 
another,  a  legislative  body  whose  imits  vary  considerably  ac- 
cording to  the  topics  under  discussion,  coming  together 
by  a  sort  of  natural  selection,  compounded  of  intei"est,  intel- 
ligience  and  public  spirit,  acting  with  the  power  of  a  limited 
assembly,  but  subject  at  all  times  to  prompt  revision  or  veto 
by  the  whole  body  of  citizenship — a  fact  which  operates  to 
keep  attention  and  decision  clcee  to  the  public  interest.  This 
is  exactly  the  sort  of  government  we  are  proposing  for  our 
cities  and  states.  The  extension  of  the  initiative  and  refer- 
endum to  practically  the  whole  range  of  municipal  and  state 
business  will  place  the  ultimate  power  at  all  times  in  the  peo- 
ple, and  that  will  make  it  safe  to  leave  public  business  to 
limited  bodies  of  experts,  who  will  be  held  true  to  the  public 
interest  by  the  power  of  veto  and  revision  residing  in  the 
public.     When  we  contemplate  the  admirable  effects  of  this 


*See  the  yearly  reports  of  the  town  and  a  condensed  account  In  the 
Direct  Legislation  Record,  1896,  pp.  2-4,  and  "Brookline,  A  Model  Town 
Under  the  Referendum,"  by  B.  O.  Flower,  Arena,  Vol.  19,  p.  505,  April,  1898. 


268  THE  OPEN  DOOE  OF  PB0GEES8. 

system  in  Brookline,  effects  which  lead  the  people  of  Brookliue 
to  resist  most  earnestly  all  attempts  to  make  the  town  a  part 
of  Boston,  because  their  experience  has  shown  that  Direct 
Legislation  gives  results  far  superior  to  those  obtained  under 
the  unguarded  delegate  system  in  the  adjoining  city  of  Bos- 
ton, even  tho  the  said  adjoining  city  is  so  much  better  than 
other  cities  that  it  prides  itself,  not  without  reason,  on  being 
tlie  Athens  of  America  and  the  Hub  of  the  Universe.  When 
we  contemplate  these  facts  we  feel  convinced  that  common 
sense  and  civic  patriotism  demand  the  extension  of  the  prin- 
ciple of  Direct  Legislation  to  Boston  and  all  other  cities  of  our 
land. 

The  worth  of  the  to^vu-meeting  method  is  recognized 
not  only  in  Massachusetts,  Maine,  New  Hampshire,  Vermont, 
Rhode  Island  and  Oonnecticut,  but  in  New  York,  Michigan, 
IlUnois  and  many  other  states  outside  of  New  England.  In 
Illinois  it  came  into  direct  and  vigorous  conflict  with  the  rep- 
resentative system  of  local  government.  In  1818,  when  Illi- 
nois became  a  state,  its  population  was  chiefly  in  the  southern 
counties,  and  composed  for  the  most  part  of  settlers  from  Vir- 
ginia and  Kentucky,  Virginia's  daughtfer  state.  These  set- 
tlers estabhshed  a  system  of  local  government  by  elective  rep- 
resentatives without  any  local  deliberative  assemblies  of  the 
people.  Settlers  from  New  England  and  New  York,  coming 
into  the  northern  part  of  the  state,  began  to  demand  the  town- 
meeting  system.  A  struggle  ensued,  resulting  in  the  adoj> 
tion  of  a  new  constitution  (1848)  providing  for  local  option 
in  local  government;  that  is,  township  government  by  delib- 
erative assembly  of  the  voters  would  be. organized  in  any 
county  whenever  a  majority  of  its  voters  so  determined.  The 
two  systems  being  thus  brought  into  immediate  contact  in 
the  same  state,  with  the  people  free  to  choose  between  them, 
the  northern  system  has  steadily  supplanted  the  previously 
established  southern  system  till  less  than  one-fifth  of  the  coun- 
ties retain  the  representative  system,  more  than  four-fifths  of 
the  state  having  adopted  the  New  England  town-meeting 
system  of  local  government. 

A  similar  local  option  by  county  vote  has  been  established 


THE    POPULAR    INITIATIVE. 


269 


ill  Missouri  (1879)  and  in  Nebraska  (1883).  In  Minnesota 
(1878)  and  Dakota  (1883)  provisions  for  township  option 
have  been  enacted,  i.  e,,  any  township  containing  25  or  more 
voters  may  petition  the  county  commissioners  and  obtain  the 
Xew  England  organization. 

The  general  movement  toward  Direct  Legislation  in  town 
affairs  is  unmistakable,  and  the  public  school  system  is  often 
the  entering  wedge.  The  school  district  as  a  preparation  for 
the  self-governing  township  is  exerting  its  influence  in  Kan- 
sas, Colorado,  Nevada,  California,  Wyoming,  Montana,  Idaho, 
Oregon  and  Washington.  Even  in  South  Carolina,  Ken- 
tucky, Tennessee  and  the  Virginias  a  similar  tendency  is  man- 
ifest, and  it  is  probable  that  thiniout  the  southern  and  west- 
em  states,  as  formerly  in  Michigan,  the  self-governing  school 
district  may  bring  in  its  wake  the  self-governing  town,  with 
its  deliberative  assembly  of  the  voters,  electing  officers,  levy- 
ing ta:xes  and  making  towm  laws  by  direct  vote  of  the  people.^ 

The  use  of  the  referendum  in  the  United  States  is  not  con- 
iined  to  town  affairs  and  constitution  making.  Any  one  who 
will  go  thru  the  laws  of  the  various  states  marking  all  provi- 
sions for  submitting  to  popular  vote  franchises,  licenses,  con- 
tracts, bond  issues,  charters  and  all  sorts  of  laws  and  ordi- 
nances, will  discover  a  vast  number  of  ref  erendal  clauses,  and 
will  begin  to  realize  how  important  a  place  in  our  law  is 
already  occupied  by  Direct  Legislatiooa  in  state  and  city  affairs. 
Some  perception  of  this  may  be  secured  by  marking  the  ref- 
erendal  clauses  in  the  laws  cited  in  Chapter  III  of  this  book, 
but  the  distance  between  such  perception  and  the  whole  truth 
may  be  appreciated  when  it  is  known  that  in  the  single  state 
of  Iowa  a  moderate  search,  by  no  means  exhaustive,  has  re- 
vealed thirty  provisions  for  the  popular  initiative  and  twenty 
provisions  for  the  referendum,  most  of  them  obligator}"^ ;  and 
such  provisions  are  not  more  prevalent  in  Iowa  than  in  many 
other  states.     Some  of  these  enactments  are  given  below*; 


'John  Fiske's  "Civil  Government,"  pp.  90-94. 
•Some  of  the  Iowa  provisions  are  as  follows: 

1.  "One  hundred  citizens  of  any  city  of  over  seven  thousand  inhabitants 
may  cause  the  question  of  establishing  a  superior  court  to  be  submitted." 

2.  "One-fourth   of   the   voters   may   cause   the   question   of   raising   taxes 
for  public  improvements  or  payment  of  debts  to  be  submitted;  or  the  ques- 


270  THE  CITY  FOR  THE  PEOPLE. 

tjhe  points  I  wish  to  empliisize  here  are:  first,  that  our  laws 
are  permeated  by  the  principle  of  IHiect  Legislation;  second, 
that  in  a  large  body  of  cases  the  obligatory  method  is  in  use; 
third,  that  in  a  considerable  number  of  other  cases  the  option 
rests  with  the  people;  fourth,,  that  in  another  large  body  of 
cases  the  option  is  expressly  given  to  the  executive  or  legis- 
lative authorities;  and  fifth,  that  in  all  other  cases,  accoi-ding 


'ion   of   the   rescission  of  any   of  such  proposition   that   has  already   been 
adopted."  ,  ^     ^ 

3.  "Two-thirds  of  the  voters  of  any  village  may  cause  the  board  of  su- 
pervisors to  change  the  name  of  such  village." 

4.  "A  majority  of  the  voters  of  a  township  may  cause  the  trustees  to 
submit  the  question  of  building  a  public  hall." 

5.  "Twenty-five  voters  of  any  portion  of  territory  may  cause  the  dis- 
trict court  to  submit  the  question  as  to  whether  such  territory  shall  be  In- 
corporated as  a  town." 

6.  "Twenty-five  of  the  voters  of  such  town  may  cause  the  question  dis- 
continuing the  incorporation  to  be  submitted." 

7.  "A  majority  of  the  voters  of  a  portion  of  territory  adjoining,  a  city 
or  town  may  cause  the  question  as  to  being  annexed  to  such  city  or  town 
to  be  submitted." 

8.  "Ten  per  cent,  of  the  voters  of  a  city  or  town,  under  special  charter, 
may  cause  the  council  to  submit  the  question  as  to  abandoning  such  charter." 

9.  "Twenty-five  property  owners  of  each  ward  in  a  city,  or  fifty  owners 
of  a  town,  may  cause  the  mayor  to  submit  the  question  as  to  municipal 
ownership  of  water  works,  gas  works,  electric  light  or  power  plants,  or 
granting  franchises  for  such." 

10.  "One-third  of  the  taxpayers  of  a  city  or  town  may  cause  the  question 
as  to  aiding  In  the  construction  or  repair  of  a  highway  leading  thereto  to 
be  submitted." 

11.  "Twenty-five  property  owners  in  each  ward  in  a  city,  under  special 
charter,  may  cause  the  mayor  to  submit  the  question  as  to  ownership  of 
water  works,  gas  works,  electric  light  or  power  plants,  or  granting  fran- 
chises for  same  or  for  railways,  street  railways  or  telephone  systems." 

12.  "One-fourth  of  the  voters  of  a  city,  under  special  charter,  may  cause 
the  question  as  to  amending  such  charter  to  be  submitted." 

13.  "A  majority  of  the  resident  freehold  taxpayers  of  a  township,  town 
or  city  may  cause  the  question  as  to  aiding  railroad  company  in  construc- 
tion of  projected  railroad  to  be  submitted." 

14.  "From  fifty  to  eighty  per  cent,  of  the  voters  of  a  city  or  town,  ac- 
cording to  population,  may  cause  the  mulct  tax  to  be  substituted  for  the 
prohibition  law  against  selling  liquor." 

15.  "One-third  of  the  voters  of  a  county  may  cause  the  question  as  to 
establishing  a  high  school  to  be  submitted." 

16.  "Ten  voters  of  any  city,  town  or  village  of  over  one  hundred  residents 
may  cause  the  question  of  making  It  an  independent  school  district  to  be 
submitted." 

17.  "One-third  of  the  voters  of  a  school  corporation  may  cause  the  ques- 
tion of  free  text  books  to  be  submitted." 

18.  "The  State  cannot  go  into  debt  more  than  two  hundred  and  fifty  thou- 
sand dollars  without  submitting  the  question." 

19.  "All  acts  creating  banks  must  be  submitted." 

20.  "Amendments  to  the  constitution  must  be  submitted." 

21.  "No  territory  can  be  annexed  to  a  city  or  town  without  submission." 

22.  "The  council  may  submit  the  question  as  to  annexing  territory  in 
cases  wherein  such  territory  has  asked  for  annexation." 

23.  "The  council  must  submit  the  question  as  to  uniting  the  cltv  or  town 
with  another  contiguous  one." 

24.  "No  city  or  town  can  extend  Its  limits  without  submission." 

25.  'The  name  of  a  city  or  town  cannot  be  changed  without  submission." 

26.  No  water  works,  gas  works  or  electric  light  or  power  plants  shall 
be  authorized,  established,  erected,  leased  or  sold,  or  franchise  extended  or 
renewed  without  submission." 

27.  "Cities  and  towns  cannot  appropriate  money  to  found  and  maintain 
libraries  without  submission." 

28.  "No  water  works  can  be  purchased  or  constructed  by  cities  of  the 
first  class  without  submission." 

29.  "Cities  and  towns  cannot  grant,  renew  or  extend  franchises  for 
the  use  of  its  streets,  highways,  avenues,  alleys  or  public  places  for  tele- 


DIRECT  LEGlSLAfiOX.  271 

to  the  law  of  most  of  owr  states,^  the  referendum  may  be 
used  at  the  discretion  of  the  legislative  authorities — the 
legislature  or  council  may  submit  any  question  to  the  voters, 
so  that  really  the  only  change  ice  ask  for  is  the  placing  of 
the  OPTION  in  the  hands  of  the  people  instead  of  leaving 
it  tvith  the  legislators.  If  it  rests  with  the  councilmen  to 
decide  whether  a  franchise,  lease,  contract,  or  other  matter 
shall  be  submitted  to  the  voters,  they  will  be  ready  enuf  to 
submit  enactments  with  which  they  have  tried  to  act  hon- 
estly, and  in  respect  to  which  they  really  desire  to  follow  the 
people's  ^vill;  but  when  there  is  a  steal  on  foot  and  the  coun- 
cil are  conscious  of  dishonest  purpose,  they  will  refuse  to 
submit  the  matter  to  the  voters.  The  question  of  building  a 
public  subway  may  go  to  the  people,  but  the  question  of  a 
Broadway  Surface  Franchise  or  a  Pliiladelphia  Gas  ,Lease 
will  not  be  submitted,  even  tho  the  people  hold  enormous  mass 
meetings  demanding  it,  and  the  press  is  a  unit  in  favor  of  it, 
and  public  sentiment  is  at  a  white  heat  over  the  refusal.  To 
leave  the  option  with  the  legislature  is  to  put  the  referendum 
beyond  the  reach  of  the  people  just  when  they  need  it  most. 
As  tho  my  architect  could  submit  his  plans  to  me  before  build- 
ing if  he  chose,  or  go  ahead  and  build  with  my  funds  with- 
out consulting  me,  no  matter  how  much  I  protested,  if  it 
suited  his  purjxise  to  use  his  discretion  that  way.  Wben  he 
was  acting  honestly  for  my  interest  he  would  consult  me,  for 
he  would  have  nothing  to  fear  from  such  consultation;  but 


graph,  district  telegraph,  telephone,  street  railway  or  other  electric  wires 
without  submission.' 

30.  "Cities  cannot  deepen,  widen,  straighten,  wall,  fill,  cover,  alter  or 
change  the  channel  of  any  water  course,  or  part  thereof,  flowing  thru  the 
limits  of  such  city,  or  construct  artificial  channels  or  covered  drains,  without 
submis-sion." 

In  a  large  number  of  States  the  prohibition  of  the  liquor  business  is 
allowed  to  cities  or  counties  by  vote  of  the  people,  and  the  referendum  is 
being  used  more  and  more  in  the  obligatory  form,  through  constitutional 
provisions  compelling  the  legislatures  to  submit  certain  questions  to  the 
people  whether  thoy  petition  for  a  referendum  or  not.  In  15  states  the  lo- 
cation of  the  capital  cannot  be  changed  except  by  popular  vote.  In  11 
states  no  debts,  unless  specifically  provided  for  by  the  constitution,  can  be 
incurred  without  such  a  vote.  In  many  states  a  similar  restriction  applies 
to  assessments  above  a  fixed  rate.  In  19  states  counties  must  choose  their 
county   seats  In  this  war. 

^Delaware  seems  to  take  a  position  against  any  implied  authority  ia  the 
/egislature  to  siibmit  questions  to  the  people.  Rice  v.  Foster,  4  How.  (Del.- 
479.  The  vast  weight  of  authority,  however.  Is  the  other  way.  See  People 
V.  Reynolds,  5  Gilm.  (111.)  1;  Ewing  v.  Hoblitzelle,  85  Mo.  64;  and  the 
citations  in  the  article  by  O.  S.  Lobiuger,  Esq.,  on  "Constitutional  Law" 
in  American  and  English  Cyclopedia  of  Law.  p.  1022  of  vol.  VI  (2d  ed.t. 
and  in  Dr.  E.  P.  Oberholtzer's  "Referendum  in  America."  published  at 
Penn.   University. 


272        GOVEKNMEKT  BY  AND  FOE  THE  PEOPLE. 

if  he  were  trying  to  put  up  a  job  on  me,  he  would  exercise 
his  option  to  act  -without  conferring  witli  me,  because  such  a 
conference  would  greatly  endanger  the  succes3  of  his  job. 

A  few  illustrations  may  show  how  frequent  is  the  use  of 
the  referendum,  and  how  thoroly  the  legislators  believe  in  it 
when  they  have  no  private  interests  likely  to  be  endangered 
by  it. 

1.  The  New  Jersey  legislatures  of  1885  to  1888  are  said 
to  have  referred  40  questions  to  the  people. 

2.  In  the  fall  of  '93  California  sent  9  questions  to  the 
people. 

3.  i^ew  York  voted  a  few  years  ago  on  the  question  of 
prison  labor  and  on  selling  the  public  salt  works. 

4.  The  city  of  New  York  long  ago  voted  at  the  polls  on  the 
water,  supply,  and  have  recently  decided  in  the  same  way  to 
build  an  underground  city  railway,  and  the  legislature  has 
also  referred  the  question  of  municipal  annexation  and  con- 
solidation to  the  citizens  of  New  York  and  vicinity. 

5.  Boston  citizens  have  voted  a  number  of  times  on  the  use 
of  the  common,  rapid  transit,  the  subway,  the  methods  of 
choosing  aldermen,  a  single  chamber,  etc. 

6.  Minneapolis  recently  voted  on  the  question  of  raising 
$200,000  for  the  schools  an.d  $400,000  to  extend  the  city 
water  works. 

7.  San  Francisco,  Los  Angeles,  St.  Louis,  Kansas  City, 
Duluth,  Tacoma  and  other  cities  have  held  referendal  votes 
on  the  adoption  of  freehold  charters.     (See  Chapter  III.) 

8.  It  is  a  common  thing  to  submit  to  the  people  of  a  city 
questions  relating  to  the  purchase  or  erection  of  public  water 
works,  gas  works,  electric  light  plants,  etc.  In  a  very  large 
proportion  of  the  four  hundred  municipalities  that  own  their 
electric  light  plants  the  matter  was  decided  by  direct  vote 
of  the  citizens.  In  a  number  of  other  states  a  referendum 
vote  is  necessary  to  the  grant  of  street  franchises  for  water, 
gas,  electric  light,  telegraph,  telephone,  transit,  etc.  In 
several  states  such  referenda  are  required  by  the  constitution. 
(See  Chapter  HE,  comments  on  Table  11.) 

In  New  Orleans  a  specially  interestng  referendum  has  re- 


THE    INITIATIVE    AND    REFERENDUM.    .  273 

centlj  been  held  (June  '99)  on  the  question  of  levying  a  tax 
to  establish  municipal  water  supply  and  better  sewage. 
Women  could  vote,  and  vote,  if  they  wished,  by  proxy,  a 
dangerous  provision  as  to  the  proxy  part  of  it.  The  initiative 
was  also  used,  as  the  referendum  was  secured  by  a  petition 
signed  by  over  10,000  taxpaying  voters. 

9.  Many  referenda  occur  in  counties,  townships  and  school 
districts,  fixing  of  county  seats,  division  lines,  school  taxes, 
questions  of  municipal  indebtedness,  etc. 

10.  Local  option  is  the  referendum  in  full  bloom.  For 
years  the  cities  and  towns  in  Massachusetts  have  been  A^oting 
at  moderate  intervals  on  the  question  of  license  or  no  license. 
Many  of  them,  including  even  Cambridge  and  Chelsea,  have 
voted  against  license.  The  total  vote  on  the  liqucxr  question 
frequently  exceeds  the  vote  for  candidates.  For  example,  the 
Chelsea  vote  for  mayor  in  1896  was  only  96  per  cent,  and 
the  vote  for  school  committee  only  80  i^er  cent,  of  the  local 
option  vote.  Local  option  on  the  liquor  question  also  exists 
in  !New  York  State,  Mississippi,  Arkansas,  Texas,  Georgia, 
Tennessee,  etc.,  and  the  effects  in  educating  the  people  on  the 
temperance  question,  developing  local  patriotism  and  bringing 
it  to  bear  upon  the  enforcement  of  law  are  most  admirable. 

The  following  cases  of  the  use  of  the  referendum  in  No- 
vember, 1896,  may  be  noted  hei'e: 

1.  Massachusetts  voted  on  two  amendments  to  the  con- 
stitution. The  amendments  had  been  passed  by  two  Eepub- 
lican  legislatures  and  endoi-sed  by  the  Eepublicau  convention, 
yet  both  were  defeated  by  a  60  per  cent,  adverse  vote,  altho 
McKinley  got  nearly  70  per  cent,  favorable  vote  and  the  Re- 
publicans carried  the  state  ticket  also  by  a  tremendous  ma- 
jority. This  shows  the  independence  of  party  ties  which 
usually  characterizes  a  vote  on  a  well-defined  measure,  and 
illustrates  the  fact  that  "representatives,"  even  when  .acting 
honestly,  may  not  represent  the  real  opinion  of  their  con- 
stituents. The  total  vote  for  governor  was  380,000,  and  on 
the  amendments  276,000  and  261,000  respectively — only 
the  more  intelligent  and  fully  posted  voting  on  the  latter. 

2.  "New  York  voted  on  the  Forestry  Amendment  passed 

18 


274  THE  END  OF  CORKUPT  LEGISLATION. 

by  two  Republican  legislatures  and  endoi-sed  by  the  Kepub- 
lican  Board  of  Forestiy  Commissioners.  The  amendment  was 
defeated  by  400,000  majority,  tho  the  Republican  Presiden- 
tial electors  had  over  200,000  majority.  The  vote  on  the 
amendment  was  321,486  for  and  710,505  against.  The  total 
vote  for  President  was  1,423,876. 

3.  In  Minnesota  nine  amendments  were  submitted;  one 
was  defeated  and  eight  adopted,  the  favorable  votes  varying 
from  90  to  58  per  cent,  on  the  different  questions.  Party  lines 
were  not  drawn  on  the  amendments. 

4.  In  Missouri  four  amendments  were  voted  on.  They 
were  not  party  measures  and  had  not  been  discussed  in  the 
papers.  The  people  voted  them  all  down,  probably  thru  the 
natural  instinct  of  wholesome  conservatism,  that  refuses  to 
make  a  change  until  the  reasons  for  it  and  the  effects  of  it  are 
understood.  The  votes  on  the  amendments  were  respectively 
57,  59,  62  and  80  per  cent,  of  the  Presidential  vote,  which 
was  20  per  cent,  larger  than  the  ordinary  vote  in  a  non-presi- 
dential year. 

5.  N^ebraska  voted  on  twelve  amendments.  The  votes 
varied  from  54  to  70  per  cent,  in  favor  of  the  amendments 
and  50  to  53  per  cent  in  favor  of  the  various  Populist  candi- 
dates. That  is,  the  range  of  discrimination  on  measures  was 
five  times  as  great  as  on  men.  This  shows  that  there  is  less 
partisanship  and  more  judgment  in  voting  on  measures  than 
in  voting  on  men. 

6.  The  Colorado  people  defeated  an  amendment  submitted 
to  them.  It  was  complicated  and  not  well  understood,  so  that 
few  voted  upon  it.  Those  who  voted  did  not  act  on  party 
lines  but  opposed  the  amendment  because  it  contained  some 
propositions  thouglit  to  be  suspicious,  as  possibly  intended  to 
cover  a  job.  The  amendment  was  favored  not  only  by  the 
legislature  but  by  many  state  officers. 

7.  Idaho  voted  on  three  amendments,  including  one  for 
equal  suffrage.  They  were  not  party  measures,  but  were 
brought  before  the  people  by  an  almost  unanimous  vote  of 
the  l^slature.  The  equal  suffrage  amendment  was  recom- 
mended in  the  platform  of  every  state  convention.     All  the 


THE  POPULAR  VETO.  275 

amendments  were  adopted,  equal  suffrage  by  a  70  per  cent, 
vote. 

8.  In  Montana  an  amendment  apparently  beneficial  was 
orerwhelmingly  defeated  because,  as  I  am  told,  it  was  sus- 
pected of  concealing  a  trick. 

9.  In  California  six  amendments  were  submitted  by  the 
same  legislature;  three  were  ratified  and  three  defeated.  The 
voting  was  not  on  party  lines  nor  in  any  sort  of  agreement 
with  the  action  of  the  people's  "representatives."  The  second 
amendment  was  carried  by  43,000  and  the  first  teas  defeated 
by  100,000  (162,945  against  and  63,824  in  favor).  The  high- 
est vote  on  any  amendment  was  85  per  cent,  of  the  total  vote 
for  candidates. 

10.  Louisiana,  Texas,  Arkansas,  Georgia,  the  two  Dakotas 
and  Washington  also  voted  on  constitutional  amendments  in 
1896.  Michigan  has  had  twenty-nine  referenda  in  twenty 
years,  most  of  them  vaguely  stated  and  not  largely  voted  on.^ 

The  large  experience  of  our  cities  and  states  with  the  true 
referendum,  a  small  part  of  which  has  been  recited,  appears 
to  establish  some  very  important  generalizations. 

1.  As  a  rule  much  greater  discrimination,  is  used  in  voting 
on  measures  than  in  voting  on  men. 

2.  The  referendal  voting  is  largely  independent  of  party 
ties  or  the  vote  on  men.  Measure  after  measure  is  voted  down 
by  the  same  citizens  who  sustain  the  party  and  re-elect  the 
legislature  that  proposes  these  measures.  If  it  were  not  for 
the  referendum — if  the  citizens  had  simply  compound  plat- 
forms to  vote  for,  with  candidates  and  party  politics  to  ob- 


'For  farther  cases  of  the  use  of  the  referendum  and  the  Initiative,  see 
the  Direct  Legislation  Record.  Vols.  I  to  V.  edited  by  Eltweed  Pomeroy, 
of  NewarJi,  N.  J.,  President  of  the  National  Direct  Legislation  League;  also 
Oberholtzer's  books,  "King  People"  and  "The  Referendum  in  America;" 
the  statute  books  of  the  various  states  and  the  municipal  records  and  re- 
ports of  cities  and  tovrns  all  over  the  United  States.  A  number  of  referen- 
dum votes  were  taken  at  the  recent  elections  (November,  '98).  Those  in 
South  Dakota,  Washington  and  California  -wore  of  special  importance,  as 
may  appear  hereafter.  In  California  six  amendments  passed  the  legislature, 
but  only  one  -n-as  carried  at  the  polls. 

The  principle  of  the  Referendum  is  recognized  in  every  election  in 
which  the  people  are  asked  to  vote  for  candidates  in  reference  to  their  pro- 
posed action  upon  the  issues  of  the  campaign;  the  theory  is,  that,  In  voting 
for  candidates  who  stand  for  certain  measures,  the  people  render  a  decision 
upon  those  measures.  Tlie  whole  theory  of  our  elections,  thereforf.  is 
based  on  the  right  of  the  people  to  decide  upon  measures,  the  the  mixture 
of  issues  r.nd  the  unreliability  of  candidates  make  the  present  method  of 
carrying  out  the  theory  very  Imperfect. 


276  THE  OPEN  DOOR  OF  PROGRESS. 

scure  and  ovenvlielm  the  inanimate  issue,  the  people  could 
not  have  expressed  their  will  on  the  said  measures — they  would 
have  been  obliged  to  endorse  measures  they  did  not  want  in 
order  to  elect  the  men  they  did  want. 

3.  Laws  passed  by  legislatures  and  councils  are  frequently 
rejected  by  the  people.  '"Representation"  does  not  represent ; 
or,  more  precisely,  unguarded  representation  frequently  mis- 
represents. Legislation  by  final  vote  of  the  people's  delegates 
cannot  be  relied  upon  to  -represent  the  people's  mil,  but  on 
the  contrary,  may  be  relied  upon  to  fail  in  such  representation 
in  a  large  proportion  of  cases,  even  when  the  delegates  are 
acting  honestly,  with  the  aim  of  carrying  out  the  wishes  of 
the  people. 

4.  The  action  of  the  referendum  is  conservative.  Changes 
not  supported  by  strong  reasons  are  voted  down. 

5.  Complex  measures  and  those  not  clearly  understood  are 
apt  to  be  defeated. 

6.  Anything  that  involves  a  job  or  political  trick,  or  is  sus- 
pected of  being  tainted  with  corruption  or  injustice,  is  votea 
down  on  general  principles. 

7.  There  is  an  automatic  self-disfranchisement  of  the  unfit. 
The  more  intelligent  and  public  spirited  citizens  take  the 
trouble  to  understand  the  measures  presented  for  decision  and 
vote  upon  them.  The  ignorant  voter  and  the  bigoted  partisan 
who  constitute  the  cui-se  of  the  ballot,  sustaining  corrupt  ma- 
chines and  bosses  and  every  political  iniquity,  are  the  very 
ones  who  ordinarily  care  least  about  a  referendum  vote.  There 
are  no  offices  or  jobs  to  be  won  by  it;  no  party  success  to  be 
scored  by  it;  what's  the  use  of  voting  on  it?  Lack  of  interest, 
carelessness  or  lack  of  knowledge  and  a  fear  that  they  might 
vote  in  the  dark  against  their  interest  eliminates  their  vote,  to 
the  great  purification  and  elevation  of  the  ballot.  Referenda 
on  the  liquor  and  gambling  questions  are,  of  course,  excep- 
tions. The  political  slums  do  vote  in  such  cases,  but  the  civic 
enthusiasm  and  educational  energy  of  the  better  citizens,  in 
prospect  of  a  clear-cut  vote  on  such  an  issue,  generally  lifts 
the  ballot  almost  or  quite  as  much  as  the  omission  of  the  slum 
vote  in  ordinary  cases. 


THE    POPULAR   INITIATIVE.  277 

8.  It  is  clear  that  Direct  Legislation  is  not  only  in  entire 
accord  ^^'ith  American  feeling  and  history,  but  is  deeply  im- 
bedded in  our  institutions.  Both  the  principle  and  the  prac- 
tice of  the  referendum  are  familiar  to  our  people,  and  its 
methods  are  not  only  in  constant  use  in  our  system  of  law- 
making, but  have  a  monopoly  of  a  considerable  space  at  each 
end  of  the  scale  of  legislation  that  is  under  discussion,  *  and 
are  opeii  to  engagements  at  the  option  of  the  legislative  au- 
thorities at  all  intermediate  points. 

Direct  Legislation  is  the  sole  method  used  at  the  top  of  the 
scale  in  making  and  amending  state  constitutions;  and  at  the 
liottom  of  the  scale  in  many  states  in  the  legislation  of  towns 
and  school  districts.  In  the  intervening  spaces,  city,  county 
and  state  legislation,  the  initiative  or  referendum  or  both 
may  be  put  in  practice  whenever  and  wherever  the  legislators 
and  councilmen  so  desire.  The  only  difference  is  that  at  the 
ends  of  the  scale  the  referendum  is  either  compulsory  or  else 
the  option  rests  with  the  people,  whereas  in  gener«l  as  to  in- 
termediate areas  the  referendum  is  not  compulsory,  and  the 
option  is  not  with  the  people,  but  with  the  legislators.  Now 
it  is  an  undoubted  fact  that  looking  at  the  matter  in  a  broad 
way,  the  legislation  at  the  two  ends  of  the  scale  we  are  con- 
sidering is  vastly  superior  to  the  legislation  in  the  intervening 
fields.  Our  constitution  and  the  acts  of  our  town  and  school 
district  meetings  are  on  the  whole  just,  public-spirited,  clear, 
concise,  the  pride  of  our  jurists,  historians  and  philosophers — 
incomparably  the  best  legislation  we  have;  while  our  statutes 
and  the  acts  of  our  city  councils  are  voluminous,  complex, 
ambiguous,  tainted  with  corruption  and  saturated  with  the 
spirit  of  private  interest — a  by-word  all  over  the  civilized 
world,  so  that  government  builders  in  Australia  urge  upon 


*  I  do  not  include  national  legislation.  It  seems  to  me  that  the  safest 
and  best  plan  is  to  extend  the  referendum  to  city  and  state  legislation  over 
a  considerable  portion  of  the  country  before  we  attempt  to  deal  with  the 
initiative  and  referendum  in  Federal  affairs.  It  is  best  to  solve  the  simpler 
problems  first,  that  we  may  be  better  prepared  to  solve  the  more  difficult 
ones.  The  city  referendum  is  the  key  to  the  state  referendum,  and  both 
will  lay  the  foundation  for  the  national  referendum.  The  principles  and 
arguments  involved,  however,  are  practically  the  same  thruout,  and  expe- 
rience, discussion  and  research  In  any  department  of  Direct  Legislation 
throws  light  on  the  whole  question.  Moreover,  in  the  present  condition 
of  our  law  it  is  impossible  to  separate  state  and  municipal  government. 
These  facts  may  explain  to  the  reader  the  method  of  treatment  adopted 
in  this  chapter. 


2t8  THE  CITY  FOB  THE  PEOPLE. 

their  people  the  necessity  of  avoiding  a  reproduction  of  the 
American  system;  a  disgrace  to  our  civilization,  a  menace  to 
our  institutions.  It  would  require  a  Swift  or  a  Carlyle  to 
find  words  to  describe  the  botch  work  with  which  our  statute 
books  are  annually  disfigured,  the  inefficiency,  confusion  and 
corruption  that  have  flowed  from  the  abuse  of  the  representa- 
tive principle. 

In  the  field  where  the  referendum  is  compulsory,  or  at  the 
option  of  the  people  there  is  little  or  no  trouble;  but  in  the 
field  where  this  is  not  true  there  are  legislative  evils,  the  rem- 
edy for  which  is  universally  regarded  as  one  of  the  greatest 
problems  of  the  age.  Is  it  not  clear  common  sense  to  try  in 
the  middle  areas  the  method  that  works  well  at  both  ends? 
Is  it  not  worth  while  at  least  to  try  the  experiment  of  using 
the  successful  method  in  place  of  the  unsuccessful  one?  es- 
pecially as  the  only  change  required  is  the  very  simple  and 
obviously  just  and  proper  one  of  transferring  the  referendal 
option  from  the  people's  delegates  to  the  people  themselves, 
so  that  city  and  state  enactments^  may  be  brought  Avithin 
the  rule  that  applies  to  town  affairs  and  constitutional  provi- 
sions, sweeping  the  whole  extent  of  state  and  local  legislation 
within  the  control  of  the  benetfioent  principle  of  actual,  con- 
tinuous and  effective  pof>ular  sovereignty.  In  almost  every 
state  we  have  a  solid  stone  road  at  each  end  of  the  legislative 
highway,  with  a  treacherous  bog  in  the  middle.  Shall  we  not 
build  the  stone  road  thru  the  bog,  so  we  shall  have,  from  end 
to  end,  a  safe  and  solid  roadway? 

There  can  be  no  doubt  about  the  answer  that  is  due  to  these 
questions.  The  referendum  has  shown  itself  the  best  of  all 
the  legislative  methods  known  to  us,  and  it  is  the  part,  of  wis- 
dom to  extend  its  field  of  usefulness,  and  apply  it  to  correct 
the  abuses  resulting  from  less  efficient  methods.  If  a  farmer 
should  find  that  a  method  in  use  in  two  of  his  fields  produced 
far  better  results,  with  less  expense,  than  the  methods  he  used 
on  the  rest  of  his  farm,  he  would  be  a  f if  he  did  not  ex- 
tend the  use  of  that  better  method  to  all  the  fields  he  possessed 
to  which  the  said  method  was  reasonably  applicable. 


*  See  last  preceding  note. 


dikect  legislation.  279 

The  Movement  in  Ameeica. 

To  Pei-fect  the  Representative  System  by  Fuller  Provisions 
for  the  Initiative  and  Referendum. 

A. ACCOMPLISHED   FACTS. 

That  our  people  believe  in  real  self-government  and  are 
not  insensible  to  the  benefits  to  be  derived  from  an  extension 
of  the  rights  of  effective  petition  for  the  enactment  or  submis- 
sion of  a  law  or  ordinance,  is  shown  by  the  splendid  progress 
made  in  recent  years  toward  a  fuller  provision  for  the  use 
of  the  initiative  and  I'^ferendum. 

1.  San  Francisco  has  adopted  the  initiative  and  referendum 
(on  a  15  per  cent,  petition)  in  respect  to  all  ordinances  and 
amendments  to  the  charter  to  which  the  people  choose  to  ap- 
ply them,  and  ordinances  involving  the  grant  of  a  franchise 
for  the  supply  of  light  or  water,  or  the  lease  oo*  sale  of  any 
public  utility  or  the  purchase  of  land  worth  more  than  $50,- 
000,  mitsf  be  submitted  to  the  people.  (May,  1898.  See 
Chapter  III.) 

2.  Alameda,  Buckley,  Seattle  and  Blacksburg  have  also 
adopted  Direct  Legislation.  The  percentage  for  effective  pe- 
tition runs  from  five  per  cent,  in  Buckley  (Washing-ton)  to 
51  per  cent,  in  Blacksburg  (Virginia),  which  is  a  small  place 
with  a  large  idea  of  economy,  the  result  being  a  plan  for  the 
initiative  and  referendum  all  in  one,  the  petition  being  large 
enuf  to  carry  the  proposition  without  any  separate  referen- 
dum vote.  This  does  not  seem  a  wise  plan.  A  moderate  per- 
centage of  the  citizenship  ought  certainly  to  have  the  right  of 
bringing  a  matter  before  the  people  for  decision  by  secret  and 
authentic  ballot. 

3.  Seattle,  Washington,  with  42,000  inhabitants,  adopted 
the  initiative  and  referendum  by  a  strong  popular  vote.  Five 
times  the  local  bosses  and  aristocracy  prevented  the  question 
from  going  to  the  people,  but  at  last  the  long  struggle  was 
won.  It  takes  25  per  cent,  of  the  voti;rs  to  exercise  the  initia- 
tive as  the  law  now  stands,  but  the  beauty  of  a  D.  L.  Law, 
even  with  a  high  percentage,  is  .that  it  places  it  in  the 
power  of  the  j>eople  to  reduce  tjie  percentage  to  5  or  10  per 


280        GOVEKNME>,'T  BV  AND  FOE  THE  PEOPLE. 

cent,  whenever  tliey  see  fit.  It  was  probably  a  wise  thing 
under  the  circumstances  to  begin  with  a  high  percentage,  be- 
cause a  law  framed  in  this  way  could  be  more  easily  carried, 
and  the  initiative  once  in  the  people's  possession,  they  can 
amend  the  law  and  put  the  i>eroentage  wherever  they  choose. 

4.  The  charter  of  Greater  'New  York  was  submitted  to  the 
people  for  approval  or  rejection.  The  referendum  principle, 
however,  has  not  been  given  its  due  control  inside  the  charter. 

5.  In  five  states  municipalities  have  been  given  the  right 
to  adopt  home-made  charters  by  referendal  vote,  and  in  three 
of  these  states  the  popular  initiative  is  provided  for,  Minne- 
sota requiring  only  an  8  per  cent,  petition  to  frame  a  new 
charter  and  a  5  per  cent,  petition  for  the  submission  of  an 
amendment  to  the  charter.  (See  Chapter  III,  Comments  on 
Table  I.)  In  a  sixth  state,  Ohio,  a  strong  movement  is  on  foot 
to  obtain  a  constitutional  amendment  giving  municipalities  a 
right  to  frame  their  own  charters  on  petition  of  5  or  10  per 
cent,  of  the  voters  of  the  municipality.  As  Mayor  Jones,  of 
Toledo,  and  other  prominent  men  are  leading  the  movement, 
it  is  likely  to  be  a  success. 

6.  The  municipal  initiative  in  respect  to  street  franchises 
and  public  ownership  of  public  utilities  has  been  recognized 
by  several  states  in  tlieir  recent  legislation,  and  the  referen- 
dum by  many  states.    (Chapter  III.) 

7.  It  is  coming  more  and  more  to  be  the  custom,  even  in 
special  legislative  grants  of  franchises,  etc.,  to  insert  a  clause 
requiring  submission  of  the  matter  to  a  vote  of  the  people  in 
the  locality  affected. 

8.  It  haa  come  to  be  the  practically  universal  custom  to  re- 
quire a  municipal  referendum  on  local  bond  issues,  and  other 
questions  of  indebtedness.- 

9.  Nebraska  passetl  a  law  in  1897  providing  for  municipal 
Direct  Legislation  on  a  15  per  cent,  petition,  or  20  per  cent, 
if  a  special  election  is  desired  to  determine  the  matter  at  issue. 
But  only  one  special  election  can  be  held  under  this  act  in 
any  one  year  unless  the  petitioners  for  it  shall  deposit  with 
the  city  or  village  clerk  a  sum  of  money  equal  to  the  expense 
of  such  election. 


THE    I^^ITIATIVE    AND    EEFEEENDUM.  281 

The  right  to  propose  ordinances  for  the  government  of  any 
city  or  other  municipal  division  of  the  state  may  be  exercised 
by  15  per  cent,  of  the  votei"s  of  such  city  or  municipal  divi- 
sion as  well  as  by  the  mayor  and  councilmen  or  other  gov- 
erning authorities  of  the  municipality.  The  petition  must 
contain  the  full  text  of  the  proposed  ordinance.  If  the  mayor 
and  council  pass  the  proposed  ordinance  within  thirty  days 
after  the  petition  is  filed,  the  matter  apparently  does  not  go 
to  the  polls  unless  there  is  a  petition  for  a  referendum.  If 
the  council  amend  the  proposed  ordinance,  both  the  original 
proposal  and  the  amended  ordinance  go  to  the  people. 

Ko  ordinance  passed  by  the  council,  except  an  iirgcncif 
measure,  goes  into  effect  till  thirty  days  after  its  passage,  and 
the  voters  by  a  15  per  cent,  petition,  filed  with  the  city  clerk 
within  said  thirty  days,  may  demand  a  referendum  on  the 
ordinance  at  the  next  general  election,  or  by  a  20  per  cent, 
petition  they  may  require  a  special  referendum,  which  must 
be  held  not  less  than  fifteen  nor  more  than  twenty  days  after 
the  filing  of  the  petition.  Oixlinances  relating  to  the  imme- 
diate preserv^ation  of  public  peace  or  health  or  items  of  appro- 
priation of  money  for  current  expenses,  which  do  not  exceed 
the  corresponding  appropriations  of  the  preceding  year  shall, 
by  unanimous  yea  and  nay  vote  of  the  council  and  the  ap- 
proval of  the  mayor,  be  deemed  to  be  urgency  Pleasures. 

The  law  does  not  go  into  effect  in  any  city  until  accepted  by 
the  voters  thereof.-^ 

This  is  a  condensation  of  the  chief  provisions  of  the  act. 
It  is  much  longer  and  contains  more  detail  than  need  be,  and 
is  by  no  means  perfect  in  other  w^ays.  The  15  per  cent,  re- 
quirement is  too  high;  it  makes  the  use  of  the  referendum 
too  cumbei-some  and  difficult.  There  is  reason  to  believe,  also, 
that  in  respect  to  some  matters,  such  as  ordinances  involving- 
important  franchise  grants,  the  referendum  should  be  obliga- 
torj-.     Again  the  percentages  and  methods  adapted  to  the 


'  Party  lines  were  drawn  to  some  extent  In  the  vote  on  this  Nebraska 
bill,  the  Republicans  voting  against  it.  This  probably  arose  chiefly  from  the 
fact  that  the  bill  was  introdiiced  by  their  political  opponents.  One  of  the 
main  causes  of  the  strength  of  the  measure  was  the  support  it  received 
from  the  various  labor  organizations. 


282  THE  END  OF  CORRUPT  LEGISLATIOX. 

municipal  initiative  and  referendum  in  one  place  may  not  be 
best  in  amother  place,  wherefore  it  would  have  seemed  wiser 
to  authorize  the  adoption  of  the  principle  of  Direct  Legisla- 
tion by  any  municipality,  and  let  it  make  its  own  laws  as  to 
percentages  and  methods  of  carrying  out  the  principle,  sub- 
ject, perhaps,  to  a  few  broad  limitations,  such  as  the  obligatory 
franchise  referendum  and  a  minimum  percentage,  altho  even 
these  matters  might  safely  be  left  to  the  municipality  in  most 
cases,  if  real  home  rule  were  bestowed  upon  it. 

10.  The  Arizona  Territorial  Legislature  in  1897  passed  a  mu- 
nicipal Direct  Legislation  bill  applying  to  cities  easting  a  vote 
between  600  and  1,000.  Petitions  must  be  signed  by  30  per 
cent,  of  the  legal  voters  of  the  city,  of  which  signers  one^half, 
at  least,  must  be  taxpayers.  It  is  a  clumsy  law,  and  applies  at 
present  only  to  the  city  of  Prescott,  but  it  is  a  good  entering 
wedge,  and  a  territorial  law  may  have  great  strategic  value, 
because  it  requires  the  approval  of  Congress,  and  may  be  the 
means  of  bringing  the  subject  of  Direct  Legislation  to  discus- 
sion and  vote  in  Washington,  thus  drawing  the  attention  and 
thought  of  the  people  to  the  matter  in  a  new  and  vital  way, 
and  possibly  securing  the  endorsement  of  the  E"ational  Gov- 
ernment for  the  Referendum  Principle, 

11.  In  N"ovembe(r,  1898,  the  people  of  South  Dakota 
adopted  a  constitutional  amendment  securing  the  initiative  and 
referendum  in  state  and  municipal  affairs.^  A  five  per  cent, 
petition  is  sufficient  for  either  the  initiative  or  referendum, 
and  all  measures  passed  by  the  people's  representatives  are 
subject  to  referendum  petition  except  such  laws  as  may  be 
necessary  for  the  immediate  i>reeeT^'ation  of  the  public  peace, 
health  or  safety,  or  support  of  the  government  and  its  existing 
public  institutions. 

The  provision  is  brief,  sweeping,  strong;  but  lacks  some- 
what in  definiteness.  :N'ote  especially  the  failure  to  name 
any  period  between  the  passage  of  a  law  and  its  taking  effect, 
during  which  a  referendary  petition  may  be  filed.     An  ad- 


llBt«'  '^^t  II^c=^^Tk°*  ^^^  carried  thru  the  legislature  mainlv  by  the  Popu- 

celv^d  Jhe^vofe«  nf  tiPt^**i  ^'^^V  ^^  ^  P^'^y  ^°t^'   b"t   in   the   House  re- 
ceived the  votes  of  all  the  Populists,  six  Republicans  and  two  Democrats. 


THE  POPULAR  VETO.  283 

verse  legislature  granting  a  corrupt  franchise  or  ''railroading 
thru"  a  dangerous  law  might  evade  the  referendum  by  malt- 
ing the  petition  period  too  short.  The  amendment  says  that 
the  legislature  shall  "enact  and  submit"  laws  proposed  by  the 
people.  It  would  be  better  to  say  that  the  Governor  or  Sec- 
retary of  State  shall  submit  proposed  laws,  unless  enacted  as 
proposed,  in  which  case  they  should  be  subject  to  referendary 
petition,  as  in  other  cases.  A  Direct  Legislation  amendment 
should  also  state  distinctly  that  the  people  may  propose 
amendments  to  the  state  constitution  or  the  city  charter,  and 
that  no  state  enactment  adopted  by  the  people  shall  be  re- 
pealed or  amended  by  the  legislature  without  submitting  the 
matter  to  the  people,  and  that  no  mimicipal  enactment  adopted 
by  the  citizens  shall  be  altered  or  repealed  by  the  city  council 
or  municipal  authorities  without  a  referendum. 

12.  The  Oregon  L^islature  has  passed  a  D.  L.  Constitu- 
tional amendment,  which,  if  approved  by  the  next  legislature, 
will  be  voted  on  at  the  polls  in  June,  1902.  The  law  does  not 
apply  to  municipalities,  but  only  to  state  enactments. 

The  initiative  requires  an  8  per  cent,  petition  tiled  with  the 
secretary  of  state  at  least  four  months  before  the  election  at 
which  the  measure  is  to  be  voted  on. 

The  referendum  may  be  ordered  by  the  legislature,  or  may 
be  demanded  (except  in  urgency  cases)  by  a  5  per  cent,  peti- 
tion filed  with  the  Secretary"  of  State  within  90  days  after  the 
final  adjournment  of  the  legislative  assembly  on  whose  action 
tlie  referendum  is  sought.  Laws  necessary  for  the  immediate 
preservation  of  the  public  peace,  health  or  safety  are  urgency 
measures. 

The  vote  in  the  legislature  was  overwhelming  and  abso- 
lutely non-partisan — 43  ayes  to  9  noes  in  the  House,  and  20 
ayes  to  8  noes  in  the  Senate.  It  was  introduced  in  the  House 
by  a  Republican  and  in  the  Senate  by  a  Populist,  and  not  a 
man  in  either  house  attempted  or  suggested  anything  of  a 
partisan  nature  in  the  discussion  and  ^,assage  of  the  bill.-' 


1  Direct   Legislation   Record.    Vol.    VI,   p.  1.    Since   this   chapter   was   set 

np  the  Legislature  of  Utah  has  passed  a  D.  L.  amendment  to  be  submitted 

to  the  people  at  the  next  general  election.  See  in^ra  Appendix  on   "Legis- 
lative Forms." 


284  THE  OPEN  DOOK  OF  PROGRESS. 

B. — Efforts. 

In  the  last  few  yeai-s  Direct  Legislation  amendments  or 
laws  have  been  introduced  in  almost  every  legislature  in  the 
countrv'.  In  1897  Direct  Legislation  measures  were  intro- 
duced in  the  Legislatures  of  Indiana,  Ohio,  Michigan,  "Wisr 
cousin,  JsTorth  Carolina,  Delaware,  Xe\v  Jersey,  Maine,  Mas- 
sachusetts, Missouri,  ^[innesota,  Iowa,  Kansas,  Nebraska, 
Colorado,  Washington,  :^rontana,  Idaho,  etc.  It  is  said  that 
"every  state  legislature  west  of  the  Mississippi,  except,  per- 
haps, Arkansas  and  Louisiana,  had  a  Direct  Leg-islation  meas- 
ure before  it."^  Before  that  amendments  had  been  pushed 
in  ]\Iassachusetts,  New  York,  ISTew  Jersey,  Illinois,  ^linnesota, 
N'ebraska,  Kansas,  both  Dakotas,  Colorado,  Montana,  Idaho, 
Oi'egon,  Washington,  Californiia,  and  perhaps  elsewhere.  In 
some  states  vigorous  work  has  been  done  for  the  referendum 
at  every  opix>rtunity  since  1894.  In  a  number  of  cases  the 
measure  has  passed  one  House,  and  in  some  cases  both  Houses 
(but  failed  for  lack  of  a  2-3  vote,  or  for  some  other  reason), 
and  in  still  other  cases  the  bill  came  within  a  few  votes  of 
passing.  2 

In  Washington  a  Direct  Legislation  amendment  passed  the 
House  (1897)  by  a  vote  of  63  to  12.  In  Kansas  an  amend- 
ment drafted  by  Chief  Justice  Doster  and  Senator  Young 
passed  the  Senate  29  to  10,  and  the  House  76  to  42,  the  Ke- 
publicans  for  the  most  part  voting  against  it  and  the  Demo- 
crats and  Populists  for  it.  It  needed  8  more  votes  for  the 
necessary  two-thirds.  The  bill  required  15  per  cent,  for 
effective  petition.  In  Montana  a  Direct  Legislation  amend- 
ment passed  the  House  41  to  27 — 21  Populists,  19  Democrats 
and  1  Eepublican  for  it;  21  Democrats  and  6  Republicans 
against  it;  defeated  for  lack  of  the  needful  two-thirds  vote. 
The  bill  engrossed  the  attention  of  the  legislature  for  23  days. 
and  held  all  other  legislation  in  check  until  it  was  decided. 
The  Hon.  M.  J.  Elliott,  who  introduced  the  measure,  says: 


'Direct  Legislation  Record,  Vol.  IV,  p.  21;  see  also  p.  6. 

'Several  D.  L.  bills  were  introduced  in  the  "09  sossion  of  the  Penn. 
Legislature.  One  of  them  was  very  generally  and  favorably  commented  on 
by  the  press  of  the  state,  but  it  died  in  committee.  See  Appendix.  "Leg- 
islative Forms." 


THE    POPULAR    INITIATIVE.  285 

^'It  took  the  combined  force  of  pliitoci'acy  among  the  Kepub- 
licans  and  Democrats  to  defeat  it."  It  called  for  21  per  cent, 
petitions,  which  is  high,  yet  the  law  would  open  the  way  for 
the  reduction  of  the  percentage  by  a  ^'ote  of  the  people  on  that 
point  alone,  disentangled  from  the  claims  of  parties  or  candi- 
dates, or  the  pros  and  cons  of  other  issues.  Xext  year  a  bill 
is  to  be  introduced  with  provisions  for  10  per  cent,  petitions. 

In  1894  the  Hon.  Richard  W.  Invin,  a  leading  Kepublican 
of  Massachusetts,  introduced  a  bill  giving  Direct  L^;islation  to 
such  cities  as  might  accept  the  act.  He  secured  the  passage  of 
the  bill  thru  the  House  by  a  vote  of  150  to  3,  but  it  was  lost 
in  the  Senate,  altho  Direct  Legislation  was  advocated  in  every 
political  platfomi  in  the  State. 

In  New  Jersey  a  Direct  Legislation  amendment  came 
mthin  2  votes  of  a  favorable  issue.  It  was  inti'oduced  in  1894 
by  the  Hon.  Thomas  McEwan,  the  Republican  leader  of  the 
House,^  and  was  championed  in  the  Senate  by  Mr.  Adrian, 
the  leadei'  on  the  Democratic  side  and  a  former  President  of 
the  Senate.  The  Legislature  listened  to  addresses  in  favor  of 
the  amendment  by  Mr.  J.  L.  Sullivan,  the  author;  Samuel 
Gompers,  President  of  the  American  Pederation  of  Labor; 
Rev.  H.  D.  Opdyke,  representing  the  Farmers'  Alliance;  Sam- 
uel J.  Sloane  representing  the  Prohibitionists  of  the  state, 
and  other  liien  of  weight,  including  some  of  the  officers  of  the 
National  Direct  Legislation  League. 

The  Rev.  Opdyke  said  in  part: 

"^lake  the  Kef erendum  the  law  of  the  state  and  a  less  number  of 
oflRcers  will  be  needed  to  administer  the  g-overnmcnt,  and  thej-  will 

work  at  reduced  salaries,  to  the  relief  of  the  taxpayers 

Pass  this  amendment  and  the  licensed  liquor  traffic  of  the  state 
will  be  swept  out  of  existence  as  if  struck  by  a  western  cvclone. 

This  is  not  a  party  measure.     It  is  approved   by   all 

parties^Democrats,     Republicajis,     Prohibitionists     and     Populists 

work  together  for  it The  people  are  determined  to 

get  the  government  back  to  themselves.    It  is  an  absolute  necessity. 

In  conclusion  let  me  say  that  as  farmers  we  have  never 

asked  for  much  from  the  legislature,  and  the  little  we  have  asked 


'  Mr.  McEwan  afterward  went  to  Congress,  and  has  introduced  Direct 
Legislation  resolutions  into  the  last  two  Congresses  and  in  the  Republican 
National  Convention  of  1896.  but  his  efforts  have  not  received  as  much  er.- 
couragement  in  these  quarters  as  could  be  wished. 


286  THE  CITY  FOR  THE  PEOPLE. 

is  not  yet  in  sight.  But  the  farmer  demands  the  enactment  of  this 
measure.  He  wants  to  do  some  lawmaking  liimself,  and  you  may 
rest  assured  that  when  the  farmers,  as  well  as  the  lawyers,  become 
law-makers,  we  will  have  fewer  laws  but  better  government,  less 
evil  and  more  virtue." 

Mr.  Sloane  said : 

"We  have  submitted  petitions  in  which  there  were  thousands  of 
names  of  the  best  citizens  of  our  state,  only  to  see  these  petitions 
laughed  and  scoifed  at,  smothered  in  committee,  and  in  one  in- 
stance thrown  around  the  chamber  from  member  to  member,  as  a 
lot  of  school  boys  might  pelt  each  other  with  paper  snowballs.  We 
have  seen  these  so-called  representatives  cowering  under  the  lash 
of  the  bosses,  doing  the  bidding  of  thieves  in  opposition  to  their 
own  expressed  sympathies  and  beliefs." 


C. — The  Rising  Tide  of  Thought. 

The  drift  of  public  sentiment  toward  tlie  extension  of  tlie 
initiative  and  referendum  to  city,  state  and  ultimately  to 
national  legislation,  is  one  of  the  most  empkatic  tendencies 
of  our  time. 

Professor  A.  V.  Dicey,  of  Oxford  University,  wrote  on  the  Refer- 
endum in  The  Nation  in  1886. 

In  1888  Boyd  Winchester,  U.  S.  Minister  to  Switzerland,  began  to 
write  about  Swiss  institutions. 

In  1889  Professor  Bernard  Moses  published  an  essay  on  "The 
Federal  Government  of  Switzerland,"  and  Sir  Franpis  Adams' 
"Swiss  Confederation"  appeared  the  same  j^ear. 

In  1890  the  Universal  Review  contained  an  article  on  the  Refer- 
endum, by  E.  A.  Freeman,  and  W.  D.  McCrackan  wrote  a  series  of 
letters  on  the  Ir.itiative  and  Referendum  for  the  New  York  Evening 
Post,  and  followed  them  with  articles  in  the  Arena,  Atlantic  and 
other  periodicals,  and  with  lectures  in  various  places. 

In  1891  Boyd  Winchester's  book,  "The  Swiss  Republic,"  came  out, 
and  some  of  McCrackan's  articles  appeared  in  the  Arena,  etc. 

In  1892  McCrackan's  "Rise  of  the  Swiss  Republic"  and  J.  W.  Sul- 
livan's "Direct  Legislation  thru  the  Initiative  and  Referendum" 
were  published.  Mr.  Sullivan  had  been  studying  Direct  Legislation 
for  some  years;  had  been  to  Switzerland  in  1888  to  study  the  sub- 
ject in  the  home  of  its  highest  development.  He  began  to  write 
about  it  in  the  New  York  Times  in  1889,  and  his  book,  published 
three  years  later,  is  undoubtedly  the  best  popular  statement  of 
the  subject  yet  made. 

In  1894  Mr.  Sullivan  started  the  Direct  Legislation  Record,  the 
editorship  of  which  was  afterward  transferred  to  Mr.  Eltweed 
Pomeroy,  of  Newark,  N.  J.     The  Record  is  beyond   question   the 


DIRECT  LEGISLATION.  287 

finest  publication  devoted  to  one  specific  reform  that  has  yet  ap- 
peared in  America. 

The  first  Direct  Legislation  organizatio.i  was  formed  in  Newark 
In  1892.  There  is  now  a  National  Direct  Legislation  League,  of 
which  Mr.  Pomeroj^  is  president. 


Such  was  the  beginnings  of  effective  thought  on  this  subject 
in  England  and  the  United  States.  To-day  it  requires  six  or 
eight  pages  of  small  type  to  record  the  titles  of  the  books 
and  leading  articles  that  have  been  published  in  this  country 
on  the  subject  of  Direct  Legislation.  The  popular  movement 
began  in  1892,  mth  the  publication  of  ]\Ir.  Sullivan's  book, 
and  has  been  greatly  aided  by  Mr.  Pomeroy's  editorial  work 
in  the  Direct  Legislation  Record,  together  with  his  extensive 
lecturing  tours  and  skillful  efforts  to  establish  centers  of  Di- 
rect Legislation  work  in  various  parts  of  the  nation,  and  to 
strengthen  the  National  Direct  Legislation  League.  To  the 
work  of  these  two  men  and  the  inherent  sense  and  justice  of 
their  cause  is  largely  due  the  fact  that  now,  after  less  than 
six  years  of  discussion,  over  three  thousand  newspapers  and 
magazines  favor  Direct  Legislation,  and  at  least  four  millions 
of  voters  are  ready  to  sanction  its  principles  at  the  ballot  box. 
With  the  single  exception  of  the  Public  Ownership  of  Mono- 
polies, no  other  progressive  idea  has  had  anything  like  so  rapid 
a  growth  as  this. 

Those  who  have  read  this  chapter  from  the  beginning  mil 
realize  (if  they  did  not  do  so  before)  that  there  is  nothing  par- 
tisan about  the  referendum  movement.  Further  proof  of 
this  is  found  in  the  fact  that  the  measure  has  received  strong 
support  from  the  press  of  all  shades  of  political  partisanship — • 
Republican,  Democratic,  Prohibition,  Populist  and  Socialist. 
In  some  states  it  has  been  made  a  plank  in  the  platfoiTn  of 
everv  party  in  the  state,  and  thruout  the  country  numerous 
platforms — Republican,  Democratic,  Prohibition  and  Popu- 
listic — have  declared  in  its  favor.  The  National  Convention  of 
the  People's  Party  at  St.  Louis  in  1896 put  a  Direct  Legislation 
plank  in  the  platform  and  ordered  the  use  of  the  initiative 
and  referendum  in  the  internal  government  of  the  party.  A 
Direct  Legislation  plank  has  been  adopted  by  the  party  in 


288        GOVERNMENT  BV  AND  FOR  THE  PEOPLE, 

eveiy  state  where  it  has  an  organization,  exc'ei>t  in  a  few  south- 
em  states.     Democratic  state  conventions  in  Illinois,  Michi- 
gan, Massachusetts,  Minnesota,  l!^ebraska,  Ohio,  California, 
"Washington,  Oregon  and  other  states  have  adopted  -vigorous 
Direct  Legislation  planks,  and  a  strong  effort  was  made  by 
William  J,  IBrjan  and  other  leadcTS  to  put  it  in  the  l^Tational 
Democratic   platform,  made   at   Chicago  in  1896.     It   came 
within  one  vot-e  in  committee.     One  more  progressive  man 
would     have    put    the    heart     and    soul     of     Democracy 
into    the    Chicago   platform.     The     Prohibition    party    has 
put     a     Direct     Legislation     plank     into     several     of     its 
state    platforms,    and    might    have    adopted    the    one    pro- 
130sed    for    the    National   platform  in  1896  if  the  Conven- 
tion had  not  split  on  the  money  question  before  it  got  a  chance 
to  consider  the  Direct  Legislation  plank.     The  Republican 
party  has  adopted  Direct  Legislation  in  some  of  its  state  con- 
ventions, and  it  was  urged  by  Congressman  McEwan  for  the 
J^ational  platform  in  1896,  but  failed  of  success.     The  Lib- 
erty Party,  the  Union  Reform  Party,  the  National  Party, 
the  Union  Party,  the  Single  Taxers  and  the  Socialists  have 
all  declared  in  favor  of  the  referendum.     In  England  the 
Conservative  Party  has  stated  the  referendum  as  one  of  its 
leading  aims,  and  in  Australia  a  powerful  movement  is  on  foot 
to  secure  the  obligatory  referendum  in  case  of  any  deadlocks 
or  legislative  disagreement  between  the  two  Houses.^ 

Those  of  every  party  who  believe  in  government  by  the 
people  favor  the  extension  of  the  referendum.  So  do  those 
who  see  the  irresistible  drift  toward  democracy,  and  wish  that 
the  movement  may  be  smooth  and  peaceful  instead  of  harsh 
and  explosive.  Even  far-sighted  men  of  wealth  and  power 
unthout  much  philanthropy  favor  the  referendum,  because 
they  understand  that  the  people  are  more  just  and  wisely 
conservative  as  well  as  more  wisely  progi-essive  than  the  ordi- 
nai-y  legislature,  cougness  or  parliament.  Only  the  short- 
sighted, reckless  plutocrats  and  politicians,  and  those  who  are 


Boti^TEngte?.'d'Ai?t^;.,^*^h^°°f""«'    «^^«°d    ^'^^on,    July    8,    1898. 
of  the  hlH?°o1.n^r'^^.i^"fi'^^"i.i^.!.P^«'-.«'^d'^m   is  advocated   by   statesmen 


of  the  highest  chaVactrrlnd  greafest  emTnenee 


THE    INITIATIVE    AND    REFERENDUM. 


289 


KincilUng  to  trust  the  people,  or  do  net  wisli  tliem  to  govern 
tliemselves — only  such  oppose  the  referendum. 

Among  the  supporters  of  Direct  Legislation  are  such  Re- 
publicans as  John  Wanamaker,  Governor  Pingree 
Senator  Irwin  and  Congressman  McEwan;  such  Dem- 
ocrats as  William  J.  Bryan  and  Geo.  Fred.  Williams;  such 
Populists  as  Senator  Marion  Butler,  Chief  Justice  Doster  and 
Horn  Ignatius  Donnelly;  such  Prohibitionists  as  Ex-Gov.  St. 
John  and  John  J.  Woolley;  such  writers  as  Henr\^  D.  Lloyd, 
B.  O.  Flower,  Prof.  R.  T.  Ely,  Prof.  J.  R.  Commons,  Prof.  E. 
W.  Bemis,  Wm.  Dean  Howells  and  Charles  M.  Sheldon;  such 
preachers  as  the  Rev.  B.  Fay  Mills,  Dr.  Lyman  Abbott,  Dr. 
George  C.  Lorrimer,  Rev.  Russell  H.  Conwell  and  Rev.  Wash- 
ington Gladden,  and  such  leaders  of  labor  as  Samuel  Gompers 
and  Eugene  V.  Debs — organized  labor  is,  in  fact,  almost  a 
unit  for  Direct  Legislation. 

We  have  seen  the  Farmers'  Alliance  and  Industrial  Union 
with  three  million  members,  and  the  American  Federation  of 
Labor,  nearly  a  million  strong,  stand  shoulder  to  shoulder  on 
this  great  issue,  heartily  endorsed  by  the  farmers,  and  until 
December,  1894,  the  sole  political  demand  of  the  Federation 
of  Labor.  The  Knights  of  Labor,  the  Brotherhood  of  Loco- 
motive Engineers,  the  order  of  Railway  Conductors,  and 
many  other  labor  organizations  favor  Direct  Legislation.  A 
considerable  number  of  trades  unions  use  the  initiative  and 
referendum  in  their  own  affairs. 

The  movement  is  endorsed  not  only  by  a  large  part  of  the 
press  ^  and  by  various  political  parties  and  labor  organizations, 
but  also  by  church  conferences,^  Christian  Endeavor  Societies, 
Epworth  Leagues,  Good  Roads  Associations  and  numerous 
other  societies.  And  in  private  conversation,  according  to  my 
exjDerience,  five  out  of  six  persons  admit  the  fairness  and  de- 
sirability of  Direct  Legislation  as  soon  as  they  imderstand 
what  it  means. 


^  It  is  estimated  that  "more  than  3,000  newspapers  and  magazines  are 
advocating  direct  legislation  as  a  primary  reform."  A.  A.  Brcwn  in  Arena. 
Vol.  22,  p.  98.  The  number  stated  amounts  to  about  one-seventh  of  the  total 
pressof  the  country. 

=  Direct  Legislation   Record,   1896,   p.   18. 

19 


290 


THE   END   OF   CORRUPT   LEGISLATION. 


Among  the  eminent  men  and  women  who  have  advocated 
the  extension  of  Direct  Legislation  are  the  following: 


Gov.  Pingree,  of  Michigan. 
Rev.  Washington  Gladden. 
Maiy  A.  Livermore. 
Samuel  Gompers. 
Hon.  John  Wanamaker. 
Rev.  Lyman  Ablwtt. 
Robert  Blatchford. 
Lord  Salisbury. 
Edwin  D.  Mead. 
Henry  D.  Lloyd. 
Rt.  Rev.  F.  D.  Hunitington. 
Rev.  R.  Heber  !Niewton. 
John  S.  Crosby. 
Hon.  C.  0.  Post. 
Florence  Kelly. 
Pres.  Thos.  E.  Will. 
Ex-Gov.  John  P.  St.  John. 
G^v.  Lind,  Minnesota. 
Gov.  Rogers,  Washington. 
J.  St.  Loe  Strachey. 
Gov.  Lee,  South  Dakota. 
U.  S.  Senator  Pettigrew. 
Dr.  George  A.  Gates. 
Lord  Rosebury. 
Prof.  Lecky. 


William  J.  Bryan. 

Rev.  Russell  H.  Conwell. 

Prof.  John  R.  Commons. 

Hon.  Geo.  Fred.  Williams. 

Wm.  Dean  Howells. 

Rev.  B.  Fay  Mills. 

B.  O.  Flower. 

Prof.  George  D.  Herron. 

Sir  Francis  Adams. 

Arthur  J.  Balfour. 

N.  O.  E'elson. 

Rev.  W.  I.  Rainsford. 

Gov.  Thomas,  Colorado. 

George  E.  McNeill. 

Pres.  G.  Droppers. 

Prof.  E.  W.  Bemis. 

Robert  Treat  Paine,  Jr. 

Gov.  Walcott,  Mass. 

Gov.  Smith,  Montana. 

Rev.  W.  D.  P.  Bliss. 

U.  S.  Sen.  Maiion  Butler. 

Con.  D.  B.  Henderson,  la. 

Dr.  C.  F.  Taylor. 

Hon.  John  G.  AYoolley. 

Prof.  Dicey. 


Ex-Mayor  McMurray,  Denver.  Mayor  Jones,  Toledo. 
Prof.  George  Gunton.  Prof.  Helen  Campbell. 

Edward  Bellamy.  Frances  E.  Willard. 

Thomas  Jefferson.  Abraham  linooln. 

Other  eminent  persons  favorable  to  the  extension  of  the 
referendum  have  been  named  in  preceding  paragraphs,  and 
still  others  I  know  to  be  favorable,  but  have  nothing  definite 
in  writing  or  print  expressing  their  views. 

It  may  be  Avell  to  quote  a  few  lines  from  some  of  the  think- 
ers named  in  order  to  show  how  emphatic  their  attitude  is 
and  the  groimds  of  their  belief. 


THE  POPULAH  VETO.  291 

"Wm.  Deau  Howells  said  in  a  letter  to  me  dated  May  22, 
1897: 

"I  am  altogether  in  favor  of  the  Initiative  and  Referendum  as 
the  only  means  of  allowing  the  people  really  to  take  part  in  making 
their  laws  and  governing  themselves." 

A  lettey  from  Rev,  Lyman  Abbott  contains  these  words: 

"In  my  judgement  the  remedy  for  the  evils  of  democracy  is  more 
democracy;  a  fresh  appeal  from  the  few  to  the  manj-;  from  the 
managers  to  the  i>eople.  I  believe  in  the  Referendum,  and,  within 
limits,  the  Initiative,  because  it  is  one  form  of  this  appeal  from 
the  few  to  the  many." 

The  Hon  .John  Wanamaker  wrote  me  in  August,  '97: 

"I  heartily-  approve  of  the  idea  of  giving  the  people  a  veto  on 
corrupt  legislation.  The  movement  to  secure  for  the  people  a  more 
direct  and  immediate  control  over  legislation  shall  have  my  sup- 
port. I  trust  such  a  movement  w^ill  receive  the  thoughtful  atten- 
tion of  all  who  would  improve  our  political  and  industrial  condi- 
tions. I  am  Avilling  to  trust  public  questions  to  the  intelligence  and 
conscience  of  the  people." 

In  July,  '97,  I  received  the  following  from  Frances  E.  Wil- 
lard,  the  great  President  of  the  World's  TToman's  Christian 
Temperance  Union: 

"I  believe  in  Direct  Legislation,  and  think  it  is  so  greatly  needed 
that  language  cannot  express  the  dire  necessity  under  which  we 
find  ourselves.  The  reign  of  the  people  is  the  one  thing  my  soul 
desires  to  see;  the  reign  of  the  politician  is  a  public  ignominy.  I 
also  believe  that  Direct  Legislation  is  certain  to  become  the  great 
political  issue  in  the  immediate  future.  The  people  are  being  edu- 
cated by  events.  They  are  coming  to  see  that  there  is  no  hope  for 
reform  under  the  existing  system  of  voting." 

The  follownng  is  from  a  letter  postmarked  June  5,  1897, 
from  Henry  D.  Lloyd,  author  of  "Wealth  Against  Common- 
wealth" and  "Labor  Copartnership:" 

"Direct   Legislation — the    Initiative     and     Referendum — must    be 

supported  by  every  believer  in  free  government The 

people  have  carelessly  allowed  their  delegates  in  party,  corpora- 
tion and  government  to  become  their  rulers,  and  now  they  are 
awakening  to  the  startling  fact  that  the  delegate  has  become  their 
exploiter.  The  people  are  losing  control  of  their  means  of  subsistence 
because  they  have  lost  control  of  their  government,  the  most  powerful 
instrumentality  for  the  creation  and  distribution  of  wealth  in  so- 
ciety.   Its  government  must  be  recovered  by  the  American  people — 


292  THE  OPEN  DOOK  OF  PKOGRESS. 

peaceably,  if  possible;  but  it  must  be  recovered.  Direct  Legislation 
would  be  the  ideal  means  for  this  peaceable  revolution.  If  the 
revolution  is  to  be  acomplished  otherwise,  Direct  Legislation  will 
stand  forth  in  the  new  order  as  the  only  means  for  expressing  the 
popular  will  that  a  free  people  will  exercise.  No  future  republic 
will  ever  repeat  the  mistake  of  giving  its  delegates  the  opportunity 
to  become  its  masters."  '■ 

» 
Wm.  Jennings  Bryan,  tlie  famous  orator  and  Democratic 

leader  says: 

"Democracy  is  not  merely  a  party  name.  Democracy  has  a  mean- 
ing. Democracy  means  a  government  in  which  the  people  rule, 
and  that  is  all  we  ask  for.  We  are  willing  to  submit  any  question 
that  concerns  the  people  of  this  country  to  the  people  thenaselves." 

"The  principle  of  the  initiative  and  referendum  is  democratic. 
It  will  not  be  opposed  by  any  democrat  who  indorses  the  declara- 
tion of  Jefferson,  that  the  people  are  capable  of  self-government, 
nor  will  it  be  opposed  by  any  republican  who  holds  to  Lincoln's 
idea  that  this  should  be  a  governm.ent  of  the  people,  by  the  people 
and  for  the  people." 

Samuel  Gompei's,  President  of  the  American  Federation  of 
Labor,  with  nearly  a  million  members,  writes  these  weighty 
words: 

"All  lovers  of  the  human  family,  all  who  earnestly  strive  for 
political  reform,  econotnic  justice,  and  social  enfranchisement, 
must  range  themselves  on  the  side  of  organized  labor  in  this  de- 
mand for  Direct  Legislation." 

Lord  Salisbury,  the  great  English  statesman,  prime  minister 
and  leader  of  the  Conservative  party  of  Great  Britain,  has  said : 

"I  believe  that  nothing  could  oppose  a  bulwark  to  popular  pas- 
sion except  an  arrangement  for  deliberate  and  careful  reference 
of  any  matter  in  dispute  to  the  votes  of  the  people,  like  the  ar- 
rangements existing  in  the  United  States  and  Switzerland." 

The  Eev.  B.  Fay  Mills,  the  celebrated  evangelist  and  elo- 
quent preacher,  writes: 

"I  will  hold  up  both  hands  for  the  Initiative  and  Referendum. 
I  sometimes  think  I  agree  with  those  who  feel  that  this  should 
be  the  next  step  in  social  reconstruction,  as  I  certainly'  believe  it 
will  be  productive  of  all  others." 


» These  and  other  lettera  were  loaned  to  President  Pomeroy,  and  appear 
in  Senate  Document,  340,  55th  Congress,  second  session,  July  8,  1898. 


THE    POPULAK   INITIATIVE.  293 

Prof.  Lecky,  Conservative  Member  of  Parliament  and 
author  of  "Democracy  and  Liberty,"  "History  of  European 
Morals,"  etc.,  says: 

"The  referendum  would  have  the  immense  advantage  of  dis- 
entangling- issues,  separating  one  great  question  from  the  m^any 
minor  questions  wath  vphich  it  may  be  mixed.  Confused  or  blended 
issues  are  among  the  greatest  political  dangers  of  our  time.  .  .  . 
The  experience  of  S^vitzerland  and  America  shows  that  when  the 
referendum  takes  root  in  a  country  it  takes  political  questions,  to 
an  immense  degree,  out  of  the  hands  of  the  wire-pullers  and  makes 
it  possible  to  decide  them  mainly,  tho  perhaps  not  wholly,  on  their 
merits,  without  producing  a  change  of  government  or  of  partj"" 
predominance." 

Prof.  George  D.  Herron  says: 

"Not  the  centralization  but  the  diffusion  of  power  is  the  safety 
of  the  present." 

Dr.  George  A.  Gates,  President  of  Iowa  College,  writes: 

"I  have  more  confidence  in  Direct  Legislation  as  a  means  of  ap- 
plying the  principles  of  a  true  democracy  to  our  public  affairs 
than  in  any  other  movement  before  the  public.  Our  American  de- 
mocracy is  very  democratic  in  form,  but  as  matters  now  stand, 
very  undemocratic  in  fact." 

J.  St.  Loe  Stracbey,  editor  of  tbe  London  Spectator,  says : 

"The  man  who  refuses  to  agree  on  the  referendum  cannot  be  true 
to  the  essential  principle  of  democratic  government." 

Andrew  Jackson  said  in  bis  inaugural : 

"So  far  as  the  people  can,  with  convenience,  speak,  it  is  safer 
for  them  to  express  their  own  will." 

Governor  Pingree  strongly  endorses  tbe  referendum  prin- 
ciple, and  in  respect  to  important  municipal  franchises,  would 
make  tbe  submission  obligatory.  In  bis  message  to  tbe  40tb 
Michigan  Legislature,  p.  28,  be  urges  "the  passage  of  an  act 
making  it  requisite  to  tbe  validity  of  a  franchise  in  tbe  streets 
of  any  municipality  that  tbe  ordinance  granting  such  rights 
shall  be  voted  upon  and  approved  by  tbe  citizens." 

Professor  Geo.  Gunton,  a  'New  York  editor  and  RepubKcan 
defender  of  trusts  and  monopolies,  yet  a  believer  in  good  gov- 
ernment, discussing  tlie  initiative  and  referendum  of  the  San 
Francisco  charter,  says: 


294  THE  CITY  FOB  THE  PEOPLE. 

"Whether  much  use  is  made  of  this  privilege  or  not,  it  will  im- 
doubtedly  create  among"  San  Francisco's  aldermen  a  livelier  sense 
of  the  representative  character  of  their  office  and  a  keener  regard 
for  the  course  of  public  opinion."  And  then,  speculating  upon  the 
possible  results  of  inaugurating  such  a  system  in  New^  York  city, 
he  adds:  "Extension  of  educational  facilities  and  various  public 
improvements  could  either  be  voted  directly,  or  a  club  held  over 
the  head  of  the  Administration  and  Municipal  Assembly  which 
would  very  materially  stimulate  progressive  action  on  their  part. 
Then,  too,  there  would  undoubtedly  be  fewer  franchises  granted 
for  inadequate  compensation,  and  fewer  contracts  let  to  political 
favorites  if  it  were  known  that  all  such  ordinances  could  be 
promptly  vetoed  by  a  plebiscite." 

Hon.  John  G.  Woolley,  the  great  temperance  orator,  says: 

"It  ought  to  be  possible  for  the  people  to  order  a  plebiscite  upon 
the  liquor  question  or  any  question  that  seems  great  enuf  to  them. 

The    Initiative    and    Referendum,    would    be    dignified, 

conservative,  simple,  safe,  powerful I  am  by  instinct 

and  training  an  adherent  to  the  Hamiltonian  idea  of  government, 
but  my  reason,  my  intelligence  impels  me  to  assent  to  Direct  Leg- 
islation as  necessary  to  the  continuance  of  our  free  institutions." 

Do  not  fail  to  note  how  cooofitantly  the  opinions  cited  em- 
pTiasize  the  idea  that  Direct  Legislation  is  essential  to  self- 
govemment.  That  fact  lies  at  the  heart  of  the  whole  discus- 
sion. I  have  sometimes  listened  to  men  disi>ute  about  the 
referendum  for  half  an.  hour  or  more,  and  then,  when  it  was 
possible  to  get  a  word  in  edgewisie,  asked  if  they  believed  in 
seK-govemment  here  in.  America,  and  on  a  favorable  reply, 
which  has  rarely  failed,  I  have  said,  "Well  then  you  believe 
in  the  referendum,  for  it  is  nothing  but  seK-govemment,  and 
self-government  is  impossible  without  it.  There  may  be  dif- 
ficulties in  extending  the  referendum,  as  there  usually  are  in 
any  great  advance,  but  remember  they  are  diificulties  with 
self-government ',  and  if  you  really  believe  with  the  great  mass 
of  the  American  people  that  self-government  is  right  and 
necessary  for  justice,  safety,  manhood,  education  and  devel- 
opment, it  is  your  duty  to  set  about  trying  to  overcome  what- 
ever difficulties  you  find  in  the  way."  I  have  yet  to  see  the 
person  who  has  any  answer  to  make  to  this  if  the  justice  of 
self-government  is  once  admitted,  so  manifest  is  it  that  the 
referendum  and  self-government  are  one  and  the  same  thing. 


DIKECT  LEGISLATION.  295 

We  have  seen,  in  the  early  part  of  this  chapter,  that 
Thomas  Jefferson  believed  in  Direct  Legislation  (tho  that  ex- 
pression was  then  unknown),  pnd  tried  to  get  it  into  the 
Virginia  constitution.  Some  paragraphs  from  his  writings 
will  show  how  strong  was  his  feeling: 

"Governments  are  republican  onlj^  in  proportion  as  they  embody 

the  will  of  the  joeople  and  execute  it vVere  I  to  assign 

to  this  term  (a  republic)  a  precise  and  definite  idea,  I  would  say, 
purely  and  simply  it  means  a  government  by  its  citizens  in  mass, 
acting  directly  and  personally  according  to  rules  established  bj-  the 
majority,  and  that  every  other  government  is  more  or  less  repub- 
lican, in  proportion  as  it  has  in  its  composition  more  or  less  of 

this   ingredient   of   the   direct   action   of   the   citizens 

The  further  the  departure  from  direct  and  constant  control  by  the 
citizens,  the  less  has  the  government  of  the  ingredient  of  republi- 
canism  And  believing,  as  I  do,  that  the  mass  of  the 

citizens  is  the  safest  depository  of  their  rights,  and  especially  that 
the  evils  flowing  from  the  duperies  of  the  people  are  less  injurious 
than  those  from  the  egotism,  of  their  agents,  I  am  a  friend  to  that 
composition  of  government  which  has  in  it  the  most  of  this  ingre- 
dient  An  elective  despotism  w^as  not  the  government 

we  fought  for." 

Abraham  Lincoln  was  also  a  believer  in  the  principle  ol 
Direct  Legislation,  and  sought  to  put  it  in  practice  to  settle 
one  of  the  most  momentous  questions  in  our  histoiy.  His 
famous  phrase,  "a  government  of  the  people,  by  the  people, 
and  for  the  people,"  is  an  exact  definition  of  a  system  based 
upon  and  effectively  controlled  by  Direct  Legislation,  and  it 
will  not  harmonize  with  any  other  system. 

In  1854  Mr.  Lincoln  said  at  Peoria,  "According  to  our 
ancient  faith,  the  just  powei-s  of  government  are  derived  from 
the  consent  of  the  governed.  *  *  *  Allow  all  the  governed 
an  equal  voice  in  the  govemment,  and  that  and  that  only  is 
self -go  vem  ment . ' ' 

Early  in  the  war  Lincoln  made  an  effort  to  secure  an  ar- 
rangement that  would  terminate  hostilities  and  settle  the 
questions  of  union  or  disunion  and  slavery  or  no  slavery  by 
means  of  a  direct  vote  of  the  whole  people.  Gentlemen  were 
sent  to  talk  with  the  President  and  Secretary  of  the  Confed- 
eracy to  see  if  an  agreement  could  be  made  to  go  to  the  people 
with  two  pro|x>sitions — peace  with  disunion  and  confederate 


296        GOVEENMENT  BY  AND  FOE  THE  PEOPLE. 

independence  as  the  southem  proposition — and  ])e&ce  with 
union,  emancipation,  no  confiscation,  and  universal  amnesty 
as  the  northern  proposition;  the  citizens  of  all  the  states  north 
and  south  to  vote  "yes,"  or  "no"  on  these  two  propositions  at 
a  special  election,  both  governments  to  hold  themselves  bound 
by  the  result  of  the  vote.  If  such  an  agreement  had  been 
made  it  is  probable  that  union  and  emancipation  would  have 
been  secured  without  further  strife.  A  large  number  of  citi- 
zens even  in  the  south  were  Union  men,  and  perhaps  the  high 
probability  of  a  Union  majority  in  the  referendum  was  what 
influenced  Free.  Davis  to  refuse  to  entertain  the  proposal  for 
a  settlement  by  ballot — a  Union  majority  would  mean  the 
collapse  of  his  Presidency.^ 

The  Refeeendum  Movement 
Part  of  a  World  Movement  toward  Liberty,  Peace  and  Democracy. 

A  little  more  than  a  hundred  years  ago  every  nation  in  the 
civilized  world  was  under  an  absolute  aristocracy.  There  were 
some  gleams  of  freedom  in  England — ^she  had  her  Magna 
Charta  and  Bill  of  Rights  and  her  House  of  Commons,  but 
the  suffrage  was  exceedingly  limited  and  the  distribution  of 
representation  outrageously  unjust,  the  majority  of  seats  in 
the  House  being  controlled  by  a  few  nobles  and  men  of 
wealth.  Only  in  local  affairs  did  the  principles  of  seK-gov- 
emment  find  anything  like  adequate  expression. 

Transplanted  in  America  local  self-government  and  the  fun- 
damentals of  the  Magna  Charta  and  the  Bill  of  Rights  grew 
into  the  ideal  of  complete  self-government.  England  trod 
upon  this  ideal,  and  it  took  up  arms  and  drove  the  monarch}^ 
out  of  the  colonies. 

Voltaire  and  Rousseau  stirred  the  mind  and  heart  of  Europe. 
English  thought,  transformed  and  glorified  in  the  flames  of 
our  Revolution,  was  taken  to  France  by  Franklin,  Paine  and 
Lafayette,  and  by  the  French  soldiers  returning  from  America. 
France  took  fire,  and  the  French  Revolution  burned  up  the 
Bourbon  throne. 


>  See  the  full  story  by  EdmuDd  Klrke  in  the  Atlantic,  September,  1864. 
See  also  Senate  Document,  340,  July  8,  1898,  p.  86. 


THE    INITIATIVE    AND    KEFEKENDUM.  297 

iSTapoleoii's  armies  shook  every  tlirone  on  the  continent, 
oveTtumed  the  most  of  them,  put  plebians  in  imperial  places, 
annihilated  the  "Divine  Right  of  Kings"  and  scattered 
the  seeds  of  democratic  thought  all  over  Europe.  The  soldiers 
of  the  Allies  retiumed  from  France  talking  of  freedom  and 
popular  government.  The  printing  press  fed  the  new  thought, 
and  the  students  in  the  universities  were  full  of  English, 
American  and  French  ideas  of  liberty.  The  French  revolu- 
tion was  smotliered,  but  only  for  a  moment.  It  burst  out 
again  and  again,  not  only  in  France,  but  in  Italy,  Austria, 
Germany,  Spain  and  other  countries.  Kings  and  Emperors 
granted  constitutions  to  appease  the  people.  England  re- 
formed her  representative  system,  greatly  extended  the  suf- 
frage, passed  splendid  secret  ballot  and  civil  service  laws,  and 
took  effective  measures  against  corrupt  practices  in  elections. 
America  built  a  republic,  with  government  by  the  people  in 
town  affairs  and  constitution  making,  and  for  the  rest  a  mix- 
ture of  government  by  delegates  with  government  by  the  peo- 
ple. And  Smtzerland  evolved  a  republic  based  on  the  idea 
of  government  hy  the  people  with  the  aid  of  representatives. 

A  century  full  of  tremendous  movement  in  the  direction  of 
democracy:  1775  all  absolute  monarchy  or  aristocracy;  1875 
not  an  absolute  government  in  Amei-ica  or  Europe  except  in 
Russia  and  Turkey;  all  the  rest  on  the  high  ground  of  con- 
stitutional government  with  representative  houses  and  wide 
suffrage,  or  still  further  up  the  slope  where  kings  and  nobles 
entirely  vanish,  with  a  few  almost  at  the  top,  where  the  peo- 
ple's will  is  sovereign  all  the  time.  From  ahsolute  king  to 
sovereign  people — from  one  to  all — that  is  the  fundamental 
movement  of  the  age;  and  do  you  think  it  will  stop  part  way? 
Will  forces  that  the  kings  and  emperors  and  aristocracies  of 
Europe  have  not  been  able  to  resist  be  held  in  check  by  a 
few  politicians  and  plutocrats?  ISTot  if  the  people  continue  to 
think.  Not  if  the  press  and  the  school  can  be  kept  from  the 
schemers'  control.  If  the  movement  towards  democracy  does 
not  stop — if  the  evolution  of  equality  in  government  does 
not  cease,  Direct  Legislation  must  come.  It  has  come  in 
Switzerland  and  to  a  large  extent  in  America,  is  used  to  some 


298  THE   END   OF  CORRUPT   LEGISLATION. 

extent  in  England  and  France,  is  vigorously  demanded  in 
New  Zealand  and  Australia,  and  is  bound  to  come  here  and 
in  every  other  country  where  the  trend  to  democracy  is  strong, 
because  there  is  no  other  way  in  which  the  rule  of  the  few 
can  be  entirely  supplanted  by  the  rule  of  the  many. 

The  diffusion  of  power  is  the  mightiest  idea  that  is  moulding 
the  world  to-day,  except  the  principles  of  love,  justice  and 
brotherhood  from  which  it  is  a  corroUary.  Direct  Legisla- 
tion has  an  inevitable  part  to  play  in  the  progress  toward  dif- 
fusion of  power,  and  is  therefore  sanctioned  and  necessitated 
by  the  principles  from  which  the  ideal  of  diffusion  is  derived. 

Direct  Legislation  aiding  diffusion  will  help  the  cause  of 
peace  as  well  as  the  cause  of  liberty  and  democracy.  Since 
the  dark  ages  very  few  wars  have  been  brought  about  by  the 
common  people.  The  reason  the  world  is  still  drenched  with 
blood  every  few  years  is  that  the  men  who  decide  on  war  are 
not,  as  a  rule,  the  ones  who  do  the  fighting  or  suffer  the  losses 
of  the  conflict.  Lf  the  men  who  voted  war  had  to  stop  the 
bullets  and  pay  the  taxes,  arbitration  would  soon  replace 
battle.  If  conciliatory  proposals  could  be  suggested  by  ini- 
tiative of  the  people  as  well  as  by  the  President  and  Congress; 
if  international  commissioners  carefully  discussed  and  ad- 
justed differences,  subject  to  a  referendum,  either  compulsory 
or  on  petition  of  the  common  people  in  each  disputing  coun- 
try, instead  of  being  subject  to  approval  or  rejection  by  a 
hot-headed  Congress,  that  sees  in  war  perhaps  a  chance  for 
glory,  profit,  conquest,  or  political  capital;  if  an  appeal  from 
the  government  to  the  people  were  possible  in  every  case  of 
war,  except  where  immediate  action  in  self-defence  were  neces- 
sary— in  short,  if  the  final  decision  lay  with  the  people  on 
both  sides  of  the  line,  wars  would  be  few  and  far  between. 
If  the  good  Czar  wants  to  bring  about  the  disarmament  of 
Europe,  he  cannot  do  better  than  work  for  the  Initiative  and 
Referendum.  So  long  as  he  works  with  the  governments  he 
is  dealing  with  men  whose  power  and  pride  and  interests  of 
every  sort  are  largely  bound  up  with  the  military;  but  give 
full  power  to  the  common  people  and  war  would  become  a 
lost  art  in  the  civilized  world. 


the  popular  veto.  299 

Tile  Practical  Details. 

There  are  several  methods  of  providing  for  the  proposal 
of  measures  by  the  people,  and  the  reference  of  enactments 
to  them  for  approval  or  rejection.  The  most  effective  means 
of  seeming  full  rights  of  initiative  and  referendum  is  a  con- 
stitutional amendment.  If  the  provision  is  only  a  statute 
the  legislature  may  repeal  it  at  any  time  when  tliey  have  a 
law  on  hand  which  they  do  not  wish  to  submit  to  the  people. 
A  statute  right,  however,  may  do  much  good,  and,  if  long  en- 
joyed, will  be  certain  to  develop  a  sentiment  that  will  not  only 
make  its  permanent  repeal  impossible,  but  will  inevitably 
lead  to  constitutional  guaranty.  The  following  analysis  may 
serve  to  suggest  some  of  the  leading  points  that  should  be 
covered  by  a  Direct  Legislation  amendment  or  statute.  Pi"0- 
visions  amounting  to  a  new  method  of  amending  the  consti- 
tution or  involving  any  changes  therein  would  of  course  be 
invalid  in  a  mere  statute — the  legislature  cannot  change  the 
constitution;  such  provisions  could  only  be  effective  in  a  con- 
stitutional amendment,  and  if  incorporated  in  a  statute  might 
render  it  void  in  toto. 

Analysis  of  Direct  Legislation  Law  or  Amendment. 
The  percentages  refer  to  the  vote  at  the  last  preceding  election. 

Initiative. — Five  per  cent,  of  the  voters  of  a  city  (or  state)  may 
propose  an  ordinance  (or  law)  or  amendment  to  the  char- 
ter (or  constitution)  by  imperative  petition  (containing 
the  proposed  m^eas\ire)  filed  with  the  city  clerk  (or  Secre- 
tary of  State). 

Said  official  shall  publish  such  proposal  at  once  and  sub- 
mit it  to  the  people  at  the  next  city  (or  state)  election 
occurring  20  (or  40)  days  after  the  said  filing,  unless  it  is 
adopted  by  the  councils  (or  legislature)  50  (or  130)  days 
before  said  election,,  in  which  case  it  shall  be  subject  to 
the  referendum. 

A  special  election  may  be  ordered  by  a  15  per  cent,  peti- 
tion, or  at  the  discretion  of  councils  (or  legislature)  or  of 
the  mayor  (or  Governor). 

Referendum. — All  measures  proposed  by  the  people,  and  all  enact- 
ments of  councils  (or  legislature),  except  urgency  meas- 
ures, shall  be  subject  to  the  referendum.    • 


300  THE  OPEN  DOOE  OF  PROGRESS. 

Five  per  cent,  of  the  voters  of  a  city  (or  state)  may  de- 
mand a  referendum.' 

The  mayor  (or  Governor)  or  one-third  of  either  council 
(or  House)  may  order  a  referendum. 

Urgency  measures  are  those  necessary  for  public  health, 
peace  or  safety,  passed  by  a  tv^•o-thirds  or  three-fourths 
vote  of  councils  (or  legislature). 

Other  enactments  shall  be  in  abeyance  for  30  (or  90)  days 
after  passage  by  councils  (or  legislature)  and  publication. 
If  within  that  time  a  referendum  petition  is  filed  with  the 
city  clerk  (or  Secretary  of  State),  the  said  official  shall  sub- 
mit such  measure  to  the  people  for  final  decision  at  the 
next  city  (or  state)   election,  as  above. 

A  special  election  may  be  ordered  as  above.  (See  Initia- 
tive.) 

If  no  referendum  petition  is  filed  within  said  time,  the 
measure  takes  effect  under  the  same  conditions  as  at  pres- 
ent. 

Franchise  and  monopoly  grants  and  contracts  with  mo- 
nopolies must  be  submitted  to  the  people. 

A  measure  rejected  by  the  people  cannot  be  again  pro- 
posed the  same  year  by  less  than  20  per  cent,  of  the  voters, 
nor  re-enacted  in  councils  (or  legislature)  except  by  a 
two-thirds  vote,  and  in  such  case  must  go  to  the  polls, 
whether  there  is  a  referendum  petition  or  not. 

A  measure  once  approved  by  the  people  cannot  be  altered 
or  repealed  unthout  a  referendum. 

When  a  law  is  declared  unconstitutional,  the  Governor 
or  the  legislature  may,  and  on  a  15  per  cent,  petition  shall 
submit  the  law  to  the  people,  and  if  approved  by  them  it 
shall  thereafter  be  law,  notwithstanding  said  decision. 
(This  amounts  to  a  new  means  of  am.ending  the  constitu- 
tion.) 

How  far  tlie  referendum  or  reference  to  the  people  should 
be  made  obligatoiy  is  a  very  important  question.  The  direct 
citizen  vote  is  ahready  obligatory  in  respect  to  constitutional 
amendments  and  the  affairs  of  towns  under  the  j^ew  England 


1  Five  per  cent.  Is  by  some  considered  too  large  when  applied  to  populous 
cities  or  states,  as  5  per  cent,  of  a  very  large  voting  population  would  place 
too  great  a  difficulty  In  the  way.  It  Is  proposed  that  a  definite  number  be 
flxed,  as  3,000  for  a  city  or  10,000  for  a  state,  or  5  per  cent,  when  such 
7i^^*^  numbers  would  exceed  5  per  cent.  The  following  is  a  good  wording: 
Three  thousand  voters,  or  a  number  equal  to  5  per  cent,  of  the  total  of 
I*?S?«..^".?*  ?*  *^®  '^^'  preceding  election,  if  such  percentage  is  less  than 
rf.OOO.  Or  In  case  of  a  state  "Ten  thousand  voters  or  a  number  eaual  to 
5  per  cent,  of  the  total  votes  cast  at  the  last  preceding  election,  if  such 
percentage  yields  a  number  less  than  10.000."  This  option  would  require 
5  per  cent,  unless  such  5  per  cent,  would  amount  to  more  than  3,000  in  case 
of  a  city,  or  10,000  in  case  of  a  state.  Whichever  was  least  In  any  case, 
the  5  per  cent,  or  the  fixed  number,  would  govern  that  case.  Five  per  cent. 
of  a  small  voting  population  would  be  easy  to  secure;  in  a  large  voting 
population  the  above  mentioned  option  would  be  desirable 


THE    POPULAK   INITIATIVE. 


301 


system;  and  in  a  number  of  states  a  citizen  vote  is  nece^ary 
to  certain  franchise  grants,  public  purcbases,  bond  issues,  etc. 
In  several  of  tbe  Swiss  cantons  the  law  exempts  urgency  meas- 
ures, leaves  transactions  that  do  not  go  beyond  established 
routine  to  take  effect  if  not  objected  to,  and  in  all  other  cases 
requires  the  submission  of  each  and  every  legislative  act  te 
the  people  as  a  matter  of  course  and  without  any  referendum 
petition. 

Matters  of  routine  may  be  defined  as  including  appropria- 
tions, purchases,  contracts  and  other  acts  that  are  substanjtially 
the  same  as  in  the  preceding  year.  It  might  be  well  to  put 
routine  measures  vnth  urgency  measures  as  exempt  even  from 
the  optional  referendum,  leaving  them  subject  to  control  thru 
the  initiative.  But  however  that  may  be,  they  ought  clearly 
to  be  exempt  from  the  obligatory  referendum. 

It  seems  probable  that  ultimately  the  obligatory  referen- 
dum will  be  found  the  better  foinn  for  several  reasons: 

1.  It  saves  the  trouble  and  expense  of  a  double  appeal  to 
the  people,  once  on  the  petition  and  once  on  the  ballot.  It 
has  been  found  in  Smtzerland  that  the  optional  referendum 
sometimes  remains  useless  because  the  voters,  wishing  to  in- 
voke its  aid,  cannot  afford  to  bear  the  cost,  so  the  law  to  which 
they  are  opposed  remains  unchallenged  and  goes  into  effect 
\vithout  a  verdict  of  the  people. 

2.  The  obligatory  referendum  does  not  play  informer — 
does  not  require  the  disclosure  of  opinions,  but  affords  the 
voters  all  the  protection  of  the  secret  ballot.  The  optional 
referendum  puts  the  petition  signei-s  on  record  and  makes 
their  opinions  known,  therefore  it  does  not  close  the  door  so 
completely  as  the  obligatory  referendum  to  improper  legisla- 
tion that  is  supported  by  powerful  employers  and  corpora- 
tions against  whose  influence  employee©  and  others  dare  not 
act  openly  for  fear  of  discharge,  or  loss  of  business,  blacklist, 
boycott,  etc 

It  is  often  the  case  that  citizens  who  oppose  an  unjust  en- 
actment and  would  vote  against  it  at  the  polls,  are,  neverthe- 
less, afraid  to  record  an  adverse  opinion  by  open  petition,  and 
others,  tho  not  exactly  afraid  to  avow  themselves,  jet  deem 


302  THE  CITY  FOR  THE  PEOPLE. 

it  wisest  for  business  or  social  reasons  to  keep  their  ideas  to 
themselves. 

3.  The  mere  inertia  of  the  people  permits  some  things  to 
pass  that  are  objectionable,  but  not  sufficiently  so  to  awaken 
an  energetic  protest;  so  that  designing  legislators  are  encour- 
aged to  act  on  the  possibility  that  bad  laws  adroitly  worded 
may  go  thru  unnoted  by  the  people,  or  at  least  escape  the 
requisite  petition  till  the  30  or  90  days  are  up.  The  Optional 
Plan  leaves  a  somewhat  wider  way  to  improper  laws  than  the 
other,  and  holds  out  a  slight  hope  to  corruption;  an  exceed- 
ingly small  one,  of  course,  for  the  chance  of  success  is  a  des- 
perate one  for  an  evil  law  with  the  Referendum  in  either 
form,  but  hope  enuf  perhaps  to  invite  the  attempt  sometimes 
when  it  would  not  be  thought  of  under  the  Obligatory  Sys- 
tem, by  which  the  chance  of  success  is  reduced  almost  to  ab- 
solute zero. 

In  all  probability,  however,  notwithstanding  the  ultimate 
advantages  of  the  obligatory  plan,  it  will  be  best  to  begin  with 
the  optional  referendum  (except  as  to  street  franchises,  and 
dealings  with  corporations  and  monopolies),  the  reasons  being: 
(1)  That  during  the  transition  from  present  methods  to  Direct 
Legislation  there  would  be  a  volume  of  business  that  might 
prove  burdensome  under  the  obligatory  system,  and  (2)  That 
the  optional  form  provides  an  intermediate  step,  permits  a 
more  gradual  change  to  the  new  system  and  allows  the  people 
time  to  become  more  accustomed  to  the  use  of  Direct 
Legislation  before  they  enter  upon  the  full  privileges  and  re- 
sponsibilities of  the  obligatory  referendum. 

Either  the  Optional  or  the  Obligatory  Referendum,  to- 
gether with  the  initiative,  will  make  our  legislative  system 
consistent  thniout,  and  bring  all  parts  of  it  into  harmony  with 
the  fundamental  principles  of  liberty,  self-government,  de- 
mocracy and  popular  sovereignty,  which  it  claims  to  regard 
as  the  essential  principles  of  true  goveniment,  and  to  which 
it  professes  an  earnest  desire  to  conform.  The  right  to  pro- 
pose or  initiate  a  city  or  state  measure  is  like  the  right  of  a 
citizen  in  town-meeting  to  make  a  motion  u}wn  any  matter 
of  business  to-  be  acted  upon  by  the  meeting,  and  the  right 


DIKECT  LEGISLATION. 


303 


of  ten  citizens  to  have  any  subject  they  choose  inserted  in  the 
warrant  for  action  hx  the  town;  the  right  to  demand  a  vote 
at  the  polls  on  a  given  law,  corresponds  to  the  right  of  a  citi- 
zen in  town-meeting  to  call  for  the  ayes  or  noes;  and  the  ob- 
ligatory referendum  corresponds  to  the  rule  which  requires 
the  plans  and  proposals  of  town  officers  and  committees,  and 
all  motions  made  at  town-meetings  to  be  put  to  a  vote  of  all 
the  citizens  who  care  to  express  themselves,  whetlier  a  vote  is 
asked  for  or  not. 

It  must  be  remembered  that  the  Referendum,  in  its  strict 
sense,  is  merely  pi'eventive,  whereas  the  Initiative  and  Ref- 
erendum together  give  the  people  the  means  of  construction 
as  well  as  the  means  of  prevention. 

The  word  Referendum,  however,  is  frequently  used  as  sy- 
nonymous mth  Direct  Legislation,  including  both  the  propo- 
sal of  laws  by  the  voters  and  the  reference  of  laws  to  them. 

Reasons  fot?  the  Referendum. 

the  doorway  of  refokm. 

1.  It  is  the  key  to  progress.  It  will  open  the  door  to  all 
other  reforms.  It  is  not  the  people  who  defeat  reform.  The 
people  want  honest  government,  civil  service  reform  and  just 
taxation.  They  vote  overwhelmingly  against  monopoly  rule 
and  for  public  ownership  of  street  franchises  and  public  utili- 
ties almost  every  time  they  have  the  opportunity.  It  is  the 
power  of  money  and  corporate  influence  and  official  interest 
that  checkmates  progress.^  Miles  of  petitions  have  gone  in  to 
Congress  for  a  postal  telegraph.  By  the  million  our  people 
have  expressed  the  wish  for  such  an  institution,  and  Hon. 
John  Wanamaker  says  in  his  very  able  argument  on  the  sub- 
ject, that  the  AVestem  Union  is  the  only  visible  opponent  of 
the  movement.  It  is  enuf,  however,  for  it  has  more  weight 
\vith  CongTess  where  its  interests  are  touched  than  all  the  75 
millions  of  "common"  people  in  the  countr\\     But  if  those 


'  In  Switzerland  direct  legislation  has  defeated  the  monopolies,  abolished 
the  lobby,  destroyed  political  corruption,  undermined  partisanship,  and  es- 
tablished proportional  representation,  progressive  taxation,  home-rule  in  lo- 
cal government,  and  public  ownership  and  control  of  railroads,  telegraph*- 
tt^lephone  and  express  service.    (See  below  under  Experience.) 


304        GOVERNMENT  BY  AND  FOE  THE  PEOPLE. 

''common"  people  mad©  the  Ihav,  the  Western  Union  would 
weigh  several  tons  less,  and  the  nation -would  own  the  tele- 
graph in  a  very  short  time.  Postal  savings  banks,  progi-essive 
income  and  inheritance  taxes  and  popular  eleetion  of  U.  S. 
Senators  would  probably  be  adopted  by  vast  majorities  if  sub- 
mitted separately  to  popular  vote,  and  perhaps  a  referendum 
might  even  give  the  Filipinos  their  freedom.  Freehold  char- 
ter laws,  civil  service  acts,  proportional  representation,  effi- 
cient corrupt  practices  acts,  local  option  and  state  dispensary 
systems,  etc.,  would  be  adopted  in  many  States,  and  city  after 
city  would  get  its  government  and  itS'  streets  out  of  the  hands 
of  politicians  and  monopolists.  Philadelphia  would  not  have 
been  robbed  of  her  gas  works  if  she  had  had  the  referendum, 
but  would  have  improved  them  and  kept  them  in  good  con- 
dition for  the  ser^dng  of  the  people.  Her  water  supply  would 
have  been  enlarged  and  purified  instead  of  being  left  to  dis- 
tribute filth  and  disease  in  order  that  councils  might  have 
a  plausible  excuse  to  sell  the  works  some  day  to  a  syndicate 
of  greedy  capitalists.  Boston  might  be  lighting  her  public 
buildings  and  streets  and  supplying  electricity  to  her  citisens 
at  half  the  private  company's  charges  if  the  people  had  had 
the  referendum  to  keep  the  aldermen  and  the  legislature  from 
killing  all  measures  of  relief.  Boston,  New  York  and  Philadel- 
phia would  not  have  been  worsted  in  their  battles  with  the 
street  railways.  Detroit  and  Chicago  could  have  won  their 
victories  with  a  fraction  of  the  cost  in  time  and  money  that 
has  been  required  to  fight  the  league  of  railway  corporations 
and  legislative  authorities. 

Hundreds  of  instances  might  be  named  in  which  councils, 
legislatures  and  congresses  have  persistently  defeated  the  well- 
known  Mdll  of  the  people.  It  is  not  sufficient  now  to  educate 
the  people  to  a  new  idea,  or  even  to  elect  representatives  on 
the  promise  to  carry  it  into  execution ;  you  have  also  to  fight 
the  power  of  money  and  corruption  in  the  legislature  that 
will  steal  away  or  put  to  sleep  the  ardor  of  your  legislators. 

How  important  it  is  that  progress  should  rest  mth  the  peo- 
ple free  of  hindrance  from  their  rulers  is  clearly  brought  out 
in  this  fine  passage  from  the  great  historian.  Buckle: 


THE    IKITIATIVE    AND    EEFEEENDUM.  305 

"No  great  political  improvement,  no  great  reform,  either  legis- 
lative or  executive,  has  ever  been  originated  in  any  country  by  its 
rulers.  The  first  suggesters  of  such  steps  have  invariably  been 
bold  and  able  thinkers,  who  discern  the  abuse  and  denounce  it  and 
point  out  how  it  is  to  be  remedied.  But  long  after  this  is  done, 
even  the  most  enlig-htened  governments  continue  to  uphold  the 
abuse  and  reject  the  remedy." 

Wendell  Phillips  said: 

"No  reform,  moral  or  intellectual,  ever  came  from,  the  upper 
classes  of  society.  Each  and  all  came  from  the  protest  of  the 
martjr  and  the  victim.  The  emancipation  of  the  working  people 
must  be  achieved  by  the  w^orking  people  themselves." 

The  Referendum  is  the  key  that  mil  unlock  the  door  to 
every  onward  movement.  It  mil  give  us  new  reforms  as  fast 
as  the  people  want  them,  without  the  necessity  of  waiting  till 
the  millionaires  and  politicians  are  ready  for  the  curtain  to 
go  up.  In  this  great  fact  lies  the  tremendous  and  immediate 
importance  of  the  Referendum,  altho  it  is  by  no  means  the 
only  irresistible  reason  for  favoring  the  movement. 

Direct  Legislation  will  give  the  people  the  power  of  volun- 
tary movement;  it  will  bring  the  public  mind  into  connection 
with  the  motor  muscles  of  the  body  politic;  it  will  gear  the 
power  of  public  sentiment  directly  and  effectively  to  the  ma- 
chinery of  legislation,  with  no  slipping  belts,  switched  off 
currents  or  broken  circuits. 

At  present  the  pocket  nerve  and  the  corporation  ganglion 
are  frequently  able  to  paralyze  the  progressive  muscles  and 
the  civic  conscience  and  control  the  body  politic,  and  the  party 
ganglia  compel  it  to  remain  inactive,  or  else  go  to  enormous 
labor  and  perform  a  large  number  of  actions  that  are  against 
its  wish  in  order  to  acomplish  a  few  things  it  desires — as  tho 
a  man  were  obliged  to  lift  a  fifty  or  hundred  pound  spoon  to 
his  lips  with  each  sip  of  soup  and  endure  the  pricks  of  several 
pins  and  needles  or  sit  down  on  a  tack  with  each  mouthful  of 
bi-ead  or  fragment  of  beef,  the  bill  of  fare  being  written  with 
those  conditions  to  be  accepted  or  rejected  as  a  whole,  like 
the  conglomerate  platforms  of  our  parties. 

The  separation  of  measures  accompanying  Direct  Legisla- 
tion is  another  thing  that  makes  it  par  excellence  the  friend 

20 


306  THE  END  OF  COERUPT  LEGISLATION. 

of  progress.  Each  reform  will  receive  as  a  rule  the  full  sup- 
port of  all  who  believe  ia  it  without  suffering  from  the  alien- 
ation and  subtraction  of  the  votes  of  citizens  who  favor  it 
but  oppose  some  other  measure  with  which  it  may  be  linked 
in  the  platform,  or  object  to  the  party  in  whose  platform  the 
reform  is  suggested  or  dislike  the  candidate  whose  name  is 
tied  to  the  movement  and  whose  election  is  the  only  means 
of  securing  its  success. 

PURE   GOVERMENT. 

2.  Direct  Legislation  will  tend  to  the  purification  of  poli- 
tics and  the  elevation  of  government.  It  is  not  the  people 
who  put  up  jobs  on  themselves,  but  corrupt  influences  in  our 
legislative  bodies;  the  Referendum  will  kill  the  corrupt 
lobby  and  close  the  doors  against  fraudulent  legislation.  It 
will  no  longer  pay  to  buy  a  franchise  from  the  aldermen,  be- 
cause the  aldermen  cannot  settle  the  matter;  the  people  have 
the  final  decision,  and  they  are  so  many  that  it  might  cost 
more  to  buy  their  votes  for  the  franchise  than  the  privilege 
is  worth.  It  is  comparatively  easy  for  a  wealthy  briber 
to  put  his  bids  high  enuf  to  overcome  the  conscience  or  other 
resistance  of  a  dozen  councilmen.  It  is  quite  a  different  mat- 
ter to  overcome  the  consciences  or  other  resistance  of  ten 
thousand  or  a  hundred  thousand  citizens.  Legislative  bribery 
derives  its  power  from  the  CONCENTRATION  OF 
TEMPTATION  resulting  from  the  power  of  a  few  legisla- 
tors to  taJce  FINAL  action. 

The  Broadway  Surface  Railway  Company  paid  aldermen 
$20,000  apiece  for  the  Broadway  franchise  steal,  which  cost 
the  company  in  bribes  and  lobby  expenses  about  $500,000; 
but  how  much  would  it  have  cost  to  buy  up  a  referendum  vote 
in  the  city? 

The  Philadelphia  councils  submitted  the  question  of  bond- 
ing the  city  for  $12,200,000,  to  be  used  for  a  variety  of  pub- 
lic improvements  (November,  1897),  but  they  refused  to  sub- 
mit to  the  people  the  question  of  leasing  the  city's  gas  works 
to  the  United  Gas  Improvement  Company  (which  already 


THE  POPULAR  VETO.  307 

owns  the  gas  works  in  over  30  cities),  altho  the  people  de- 
manded a  referendum  with  indignant  vehemence.  The  In- 
quirer had  a  referendum  vote  taken  in  the  Twenty-eighth 
ward,  with  ballot  boxes  and  regular  printed  ballots,  just  be- 
fore the  lea^e,  and  the  vote  was  32  in  favor  and  2583  against 
it — 81  to  1  against  the  action  of  the  councils.  There  is  no 
doubt  that  a  vote  in  other  parts  of  the  city  would  have  gone 
overwhelmingly  against  the  councils.  "The  Progressive  Age," 
a  leading  organ  of  the  gas  interests,  in  its  issue  of  January  15, 
1898,  admitted  that  the  people  would  have  voted  against  a 
lease,  and  that  "it  w?.s  artificial  pressure  which  effected  the  re- 
sult." Commenting  on  this  case  "City  and  State,"  of  Phila- 
delphia, said:  "The  refusal  to  permit  the  owners  of  a  great 
property  (which  is  valued  approximately  at  $30,000,000)  to 
say  whether  they  shall  part  with  it  or  keep  it  is  worthy  of  the 
severest  condemnation."  "Bribed  by  the  rich  to  rob  the 
poor,"  said  the  Hon.  "Wayne  MacYeagh.  The  poor  thieves 
in  legislature  and  council  bought  by  the  rich  thieves  in  the 
corporations,  to  give  away  the  property  of  a  million  people 
that  has  been  entrusted  in  their  care. 

Such  cases  show  with  tremendous  emphasis  that  it  will  not 
do  to  leave  the  referendum  option  with  the  legislators.  They 
submit  questions  that  are  immaterial  to  them  or  in  respect  to 
which  they  wish  to  act  honestly;  but  they  never  submit  a  fran- 
chise steal  to  the  people.  When  they  are  acting  from  honest 
motives  they  often  find  the  referendum  very  helpful  in  com- 
ing to  a  wise  and  just  conclusion;  but  when  they  are  acting 
from  corrupt  and  selfish  motives  they  have  no  use  for  the  ref- 
erendum. 

The  reader  will  remember  that  in  examining  the  facts  relat- 
ing to  the  use  of  the  Referendum  in  the  United  States,  we 
found  that  the  people  have  voted  down  all  propositions  that 
were  suspected  of  being  accessory  to  any  job,  and  the  stren- 
uous opposition  of  the  corruptionists  to  the  extension  of  the 
Referendum  shows  that  they  appreciate  its  power  for  purity. 
They  know  very  well  that  corporation  frauds  could  not  go  on, 
and  that  valuable  gas,  electric  light' and  street  railway  fran- 
chises would  no  longer  be  given  to  lobbying  corporations  if 
we  had  the  Referendum. 


308  THE  OPEN  DOOR  OF  PKOGRESS. 

WLen  the  Keading  Eoad  was  asking  for  special  tenninal 
privileges  in  Philadelphia  at  Twelfth  and  Market  streets,  tlie 
company  put  $5,000  at  the  service  of  each  member  of  the  se- 
lect council,  and  a  noted  political  boss,  who  was  in  the  council 
at  the  time  and  had  large  influence  there,  told  a  prominent 
lawyer  of  my  acquaintance  that  there  were  only  three  council- 
men  who  refused  the  money,  and  that  he  (the  boss)  was  not 
one  of  the  three. 

I  am  told  that  in  Massachusetts  legislators  at  the  state 
house  can  be  bought  for  $250  a  vote  on  important  measures. 
It  is  said  that  in  Washington  State  ordinary  legislation  can  be 
purchased  at  $200  a  head.  A  few  years  ago  a  member  of  the 
Albany  legislature  told  an  intimate  friend  of  mine  that  two- 
thirds  of  the  legislature  had  taken  bribes,  and  it  was  doubtful 
if  many  of  the  other  third  would  resist  in  case  of  strong  pres- 
sure. I  am  told  by  Peoples'  Party  men  that,  in  the  L^is- 
latures  of  some  "Western  States,  Populist  members  can  be 
bought  for  $20  a  vote  and  other  members  for  $10  a  vote 
A  member  of  tlie  ^lichigan  legislature  resigned  because  he 
could  not  put  up  with  the  continiual  strain  on  his  morals,  and 
his  successor  told  him  that  he  made  $16,000  out  of  his  first 
session  on  a  salary  of  $300  a  session. 

A  legislator  may  be  subjected  to  successful  pressure  by 
street  railways,  gas  and  electric  light  companies,  the  railroads, 
the  oil-trust,  or  the  coal  combine,  but  the  citizens  are  too  nu- 
merous, too  much  interested  in  their  own  pocket-books  and 
too  wdde  awake  to  their  own  welfare  to  be  wheedled  or  bribed 
or  threatened  into  giving  away  their  property,  or  endowing 
big  corporations  with  privileges  and  powers  to  be  used  to  the 
disadvantage  and  oppression  of  the  donors.  As  Professor 
Bryce  says,  "The  legislators  can  be  'got  at;'  the  people  can- 
not" 

Prof.  Bemis  tells  of  a  corporation  voting  $100,000  to  buy 
the  Chicago  council  as  calmly  as  it  would  vote  to  buy  a  new 
building,  and  says  that,  according  to  a  reliable  attorney,  such 
a  proceeding  is  an  ordinary  thing.  Under  the  Eeferendum 
eruch  proceedings  would  not-  take  place  because  they  would 
be  of  no  use.  The  Referendum  destroys  the  poAver  of  legisr 
lators  to  legislate-  for  personal  ends. 


THE   POPULAR   INITIATIVE.  309 

The  lobby  exists  mainly  to  get  from  tlie  legislature  private 
advantages  which  the  people  would  never  gTant,  because  such 
advantages  are  against  the  inter^ts  of  the  people.  You  may 
find  it  quite  easy  to  offer  ten  men  or  a  hundred  men  enuf  to 
overcome  their  interest  in  good  government  according  to  their 
perverted  standards  of  value,  but  you  would  find  it  very  diffi- 
cult and  very  costly  to  buy  half  a  city  full  of  men  to  vote 
against  the  public  interests.  In  a  state  or  national  vote  the 
lobbyists'  problem  would  be  more  gigantic  still.  Imagine 
Oakes  Ames  travelling  all  over  the  United  States  bribing  men 
with  stock  to  vote  for  a  big  Pacific  steal !  It  would  take  more 
stock  than  the  road  would  ever  own,  even  if  it  had  as  much 
water  in  its  capitalization  as  lies  in  the  broad  bed  of  the  Pacific 
Ocean.  If  a  million  citizens  owning  a  city  or  state  entrust 
their  business  to  100  agents,  and  you  wish  to  acquire  a  million 
dollar  franchise  for  nothing,  or  obtain  a  contract  that  will 
give  you  a  million  more  than  the  fair  value  of  the  work  you 
do  under  it,  you  may  be  able  to  persuade  51  of  the  agents  to 
vote  the  contract  or  franchise  to  you,  but  it  would  be  a  very 
different  undertaking  to  persuade  500,000  people  to  vote  you 
the  booty.  You  could  give  each  agent  of  the  51  an  "induce- 
ment" of  five  to  ten  thousand  dollars  and  still  have  one-half 
or  three-fourtlis  of  a  million  of  the  plunder  left  for  yourself, 
but  to  buy  the  people  at  the  same  rates  would  cost  you  two 
and  a  half  to  five  billions,  or  several  thousand  times  as  much 
as  the  whole  steal  would  come  to:  and  instead  of  being  a 
gainer  you  would  be  some  billions  out  of  pocket.  In  order  to 
buy  the  people  and  have  half  the  plunder  left  you  would  l>ave 
to  reduce  your  "commissions"  from  $10,000  apiece  to  $1  a 
head.  The  Referendiim  icould  infinitely  dilute  the  pow(yt' 
of  hrihery  in  procuring  legislation,  and  correspondingly 
weaken  the  motive  for  it.  It  is  one  thing  to  say  to  a  few 
agents,  "IleljD  me  steal  a  fortune  from  the  people  and  I  will 
give  you  a  big  slice  of  it,"  and  quite  another  thing  to  say  to 
the  people,  "Permit  me  to  take  a  fortune  from  yourselves 
and  I  will  give  back  a  few  cents  of  it  to  each  of  you." 

The  Referendum  will  be  the  death  of  the  lobby.  It  will 
be  impracticable  to  lobby  the  people  because  of  their  number. 


310  THE  CITY  FOK  THE  PEOPLE. 

And  it  will  be  useless  to  lobby  the  legislators  for  they  cannot 
deliver  the  goods.^ 

No  doubt  persuasion  will  still  be  used  with  legislators  as 
the  first  and  easiest  method  of  initiating  legislation,  but  the 
lack  of  finahty  in  the  action  of  legislative  bodies  will  take 
away  its  commercial  value,  and  the  Lobby  or  "Third  House" 
as  it  exists  to-day  will  dissolve.  Log-rolling  and  minority  ob- 
struction will  also  lose  their  power,  and  dishonest  men  will  be 
much  less  likely  to  buy  legislative  positions  and  other  offices, 
because  they  cannot  make  them  pay.  Where  would  Tweed 
have  been  with  the  referendum  in  full  play?  Where  would 
Quay  be  now  if  the  people  had  the  referendum  on  the  United 
States  Senatorship? 

Blackmailing  will  be  destroyed  as  well  as  the  corrupting 
power  of  the  lobby.     The  Referendum  works  both  ways;  it 


1  Mr.  S.  E.  Moflett  says  In  his  Suggestions  on  Oovernment:  "That  every 
man  has  his  price  Is  too  hard  a  saying;  but  that  the  great  majority  ol  men 
have  their  price  is  the  simple  truth.  When  votes  are  quoted  at  $2  apiece 
from  5  to  10  per  cent,  of  the  voters  of  a  state  can  be  bought.  Ten  dollars 
apiece  would  buy,  perhaps,  20  per  cent.;  $100  apiece  would  buy  50  per  cent, 
and  If  the  price  was  raised  to  $100,000  each.  It  Is  doubtful  whether  one  voter 
out  of  twenty  In  any  state  of  the  Union  could  resist  the  temptation.  Now, 
it  often  happens  that  the  enactment  or  defeat  of  certain  legislation  is  im- 
portant enuf  to  rich  corporations  to  make  it  worth  their  while  to  oflfer  $100,- 
000  each,  If  necessary,  for  the  assistance  of  a  few  members  of  Congress  or 
of  a  State  Legislature;  but  it  would  be  Impossible  for  any  corporation  to 
offer  $100  apiece  to  a  majority  of  the  voters  of  the  United  States;  and  prac- 
tically Impossible  to  make  such  an  offer  to  the  majority  of  th^  voters  of  an 
average  state. 

"There  are  other  ways,  too,  in  which  the  private  Interests  of  legislators 
are  made  to  influence  their  public  action.  The  Congressional  silver  pool, 
at  the  time  of  the  passage  of  the  Sherman  law  of  1890.  and  the  Senatorial 
speculation  In  sugar  stock  during  the  manipulation  of  the  Wilson  tariff  bill 
In  the  Finance  Committee,  became  national  scandals.  livery  great  railroad 
whose  Interests  are  affected  by  legislation  has  its  attorneys  in  Congress 
or  in  the  State  Legislatures.  The  presidents  and  chief  stockholders  of  Im- 
portant corporations  have  held  seats  In  the  Senate  and  openly  spoken  and 
vot«d  In  behalf  of  their  private  Interests  without  betraying  a  thought  of 
impropriety. 

"It  is  said  that  the  true  remedy  for  these  evils  Is  to  elect  good  men  to 
office.  The  advocates  of  this  happy  and  original  Idea  will  have  every- 
thing their  own  way  when  they  show  us  two  things:  First,  how  to  insure 
the  election  of  good  men;  and,  second,  how  to  keep  them  good  after  they 
are  elected.  It  Is  useless  to  expect  representatives  to  be  very  much  better 
than  the  people  they  represent.  It  Is  as  much  as  we  can  reasonably  look 
for  If  they  are  no  worse.  A  system  of  government  whose  satlsfactorv  opera- 
tion requires  the  continual  election  of  archangels  to  office  is  not  a  practi- 
cable working  system.  To  have  a  really  stable  frabrlc  of  government  we 
must  base  It  upon  enlightened  self-interest.  As  Mill  puts  It: 
•  ^  "  'The  Ideally  perfect  constitution  of  a  public  office  is  that  In  which  the 
interest  of  the  functionary  is  entirely  coincident  with  his  duty.' 

^ow,  the  self-interest  of  the  average  man,  acting  as  one  of  the  mass 
or  voters,  lies  in  the  direction  of  good  and  and  honest  government.  It  Is 
worth  more  to  him  to  have  cheap  sugar,  pure  water  and  safe,  rapid,  cheap 
and  comfortable  transportation  than  to  accept  50  cents  from  the  sugar  trust. 
a  dollar  from  a  water  company  and  $2  from  a  railroad,  to  be  cheated,  pois- 
oned, jostled  and  belated,  with  the  prospects  of  being  eventually  flattened 
out  or  burned  alive  In  a  wreck.  But  the  average  man  In  the  place  of  a  legis- 
lator would  certainly  succumb  to  the  same  Influences  that  corrupt  the  poll 
tlclan."  ^ 


DIEECT  LEGISLATION.  311 

keeps  the  corporations  from  using  the  legislature  for  theii 
private  gain,  and  it  also  keeps  the  legislators  from  blackmail 
ing  the  corporations  by  introducing  bills  injurious  to  them, 
so  that  they  will  offer  large  suras  to  have  the  bills  quashed — 
a  shameful  practice  prevailing  to  a  large  extent  in  some  of 
our  legislative  bodies. 

The  unguarded  representative  system,  or  delegation  of  un- 
controlled law  making  power  to  a  small  body  of  legislators, 
has  utterly  failed  to  check  class  legislation,  or  the  growth  of 
monopoly  and  corruption.  On  the  contrary,  these  evils  have  in- 
creased in  city  and  state  where  the  delegate  system  has  control, 
whereas  in  towTi  affairs  and  constitution  making,  and  city 
business  so  far  as  referred  to  and  centroUed  by  the  people, 
the  said  e\'ils  are  comparatively  unknown.  This  contrast  viv- 
idly illusti-ates  the  power  for  purity  that  Direct  Legislation 
possesses. 

As  we  shall  see  below,  the  force  of  partisanship  will  dimin- 
ish by  the  refei'endum.  Party  success  will  no  longer  mean 
power  to  mould  the  laws  of  a  city  or  state  for  one  or  more 
years.  And  the  intensity  of  party  feeling  will  diminish  as 
the  value  of  the  prize  to  be  won  is  lessened.  The  weakening 
of  partisanship  will  react  on  the  executive  department,  and 
the  spoils  system  will  have  less  hold  on  the  government  even 
before  civil  service  regulations  are  thoroly  formed  and  en- 
forced. 

As  we  have  seen,  the  obligatory  referendum  would  be  most 
effective  in  checking  corruption;  but  even  the  optional  refer- 
endum mil  make  corrupt  legislation  a  dangerous  and  un- 
profitable thing.  The  mere  fact  that  the  right  of  appeal  to  the 
people  exists  within  the  reach  of  a  reasonable  percentage  of 
voters  will  purify  legislation  at  its  source.  (See  Professor 
Gunton's  remarks  above  quoted.) 

The  Initiative  and  Referendum  will  destroy  the  private  mo- 
nopoly cf  law  making.  The  public  ownership  of  monopolies 
will  destroy  the  chief  corruption  fund.  Civil  service  refonr 
and  effective  corrupt  practices  acts  will  also  make  for  purity 
Proper  r^triction  of  immigration  and  thoro  educational 
measures  can  hardly  fail  to  follow  close  upon  the  refereadurw 


'312        GOVERNMENT  BY  AND  FOR  THE  PEOPLE. 

And  the  force  of  these  six  measures  will  gradually  eliminate 
corruption  from  government.  As  politics  grow  purer  the  ras- 
cals will  leave  the  field  and  nobler  men  will  enter  it,  thus 
hastening  the  upward  movement. 

3.  Demagoguery  and  the  influence  of  employers  over  the 
votes  of  their  employees  will  he  diminished  factors  in  elec- 
tions. When  the  question  is  voting  an  office  to  A  or  to  B, 
one  as  good  as  the  other  for  all  the  voter  knows,  a  two-dollar 
bill  or  the  wish  of  his  employer  may  seem  to  the  voter  to  be 
worth  more  than  the  probWiatical  difference  between  the 
two  candidates,  for  whatever  their  platforms  and  promises 
there  is  little  possibility  of  telling  what  they  will  do  when 
elected.-'  But  when  the  question  comes  directly  home  to  the 
self-interest  of  the  voter,  on  a  bill  to  give  away  public  prop- 
erty, or  franchises,  or  make  an  extravagant  contract,  etc.,  the 
voter  -^vill  use  the  protection  of  the  secret  ballot  and  record 
his  opinion,  regardless  of  two-dollar  bills  or  the  wishes  of  em- 
ployers. 

The  Bay  State  Gas  Company  of  Boston  found  no  difficulty 
in  managing  the  councils,  but  if  the  public  ownership  of  gas 
works  were  put  to  a  vote  of  the  people,  the  Bay  State  would 
be  almost  a  cipher  in  tlie  ballot.  If  the  municipalization  of 
the  street  car  lines  were  put  to  vote  I  believe  that  even  the 
employees  of  the  roads  would  neglect  to  obey  the  voting- 
orders  from  headquarters,  and. cast  their  ballots  almost  to  a 
man  for  the  change.  Even  the  ignorant  voter  will  be  r^cued 
by  the  Referendum  to  some  extent.  The  demagogue  and 
politician  will  lose  a,  large  part  of  their  power  to  prejudice  and 
confuse  when  the  issue  is  a  single,  cleai*-cut  question  of  money, 
property  or  public  policy,  instead  of  the  present  entanglement 
of  measures  and  men  tossed  together  in  a  confused  heap  for 


»  Carlyle  snys:  "Wliat  Is  It  to  the  ragged,  grlmv  freeman  of  a  10-pound 
franchise  borough,  whether  Aristides  Rigmarole,  Esq.,  of  the  Destructive 
party,  or  the  Hon.  Alcides  Dolittle,  of  the  Conservative  partv,  be  sent  to 
Parliament;  much  more,  whether  the  two-thousandth  part  of  them  be  sent, 
for  that  is  the  amount  of  hl-s  faculty  In  it.  Destructive  or  Conservative, 
what  will  either  of  them  destroy  or  conserve  of  vital  moment  to  this  free- 
man? Haa  he  found  either  of  them  care,  at  bottom,  a  six-pence  for  him  or 
his  interests,  or  those  of  his  class  or  of  his  cause,  or  of  any  class  or  cause 
that  Is  of  much  value  to  God  or  to  man?  Rigmarole  and  Dollttle  have 
alike  cared  for  themselves  hitherto,  and  for  their  own  clique  and  self-con- 
ceited crochets,  their  greasy,  dishonest  interests  of  pudding  or  windy,  dis- 
honest interests  of  praise,  and  not  very  perceptibly  for  any  other  interest 
whatever."  ^    l-        i        ^  j 


THE    INITIATIVE    AXD    REFERENDUM. 


313 


the  express  piii-pose,  one  might  think,  of  affording  dema- 
gogues their  golden  opportunity  to  prejudice  men  against  the 
whole  "heap"  by  centering  attention  upon  some  objectionable 
feature  of  it,  and  ignoring  the  good  features  or  lying  about 
them,  or  to  prejudice  men  in  favor  of  the  whole  by  reversing 
the  process  of  deception. 

4.  The  power  of  rings  and  bosses  will  he  greatly  reduced 
hy  the  Referendum;  directly  so  far  as  concerns  the  large  por- 
tion of  their  power,  which  depends  on  controlling  legislation; 
indirectly  so  far  as  concerns  their  administrative  power.  ISToth- 
ing  will  do  more  than  the  Referendum  for  the  cause  of  civil 
seiwice  reform,  and  the  awakening  of  a  strong  interest  in 
politics  and  the  ballot  on  the  part  of  our  best  people,  and  tliese 
things  will  quickly  abolish  the  boss  and  the  ring. 

Proix)rtional  representation,  majority  elections  and  strin- 
gent corrupt  practices  acts  will  be  likely  to  be  proposed  and 
adopted  under  the  initiative  and  referendum.  And  further 
relief  may  be  afforded  by  the  Imperative  Mandate  or  Recall — 
the  removal  of  an  officer  by  initiative  and  referendum  on  a 
two-thirds  vote — a  plan  which  would  operate  in  case  of  any 
executive,  judicial,  or  other  officer  appointed  for  a  certain 
district  or  elected  by  a  majority  vote  in  a  given  district,  but 
would  not  work  with  officers  elected  under  the  plurality  rule 
or  proportional  representation  and  the  secret  ballot. 

All  these  things,  together  with  the  fact  that  the  purification 
of  legislation,  will  take  away  the  larger  part  of  the  profits  of 
bossdom,  make  it  likely  that  the  Platts  and  Crokers,  Quays 
and  Hannas  will  find  their  empires  undermined  by  the  Refer- 
endum and  its  natural  sequences. 

5.  Partisanship  will  sink  into  comparative  insignificance 
in  the  government  of  the  country.  At  present  al>out  all  the 
guide  the  average  voter  has  is  the  party  to  which  he  belongs. 
He  knows  little  or  nothing  of  the  candidates  on  either  side. 
There  are  only  a  few  thing-s  much  talked  of  in  the  campaign, 
so  far  as  his  party  papers  and  speakei-s  bring  him  information^ 
and  he  thinks  his  party  is  right  on  these  things,  or  he  votes 
with  it  because  his  father  did  or  his  employer,  and  because 
there  is  no  particular  reason  appealing  to  his  interests  to  pre- 


814  THE  END  OF  CORRUPT  LEGISLATION. 

vent  him  from  doing  so.  But  when  specific  measures  are 
submitted  separately  to  the  people  in  the  precise  form  in 
which  they  are  to  take  effect,  voting  will  assume  a  definite- 
ness  heretofore  unknown,  and  the  citizens  will  vote  on  each 
measure  as  they  believe  their  interests  require,  and  will  not 
be  likely  to  rob  themselves  or  disregard  what  they  believe  to 
be  for  their  benefit,  merely  to  please  a  party  machine.  Expe- 
rience with  the  Referendum  plan  in  town  affairs,  voting  on 
city  franchises  and  making  constitutions,  abundantly  proves 
that  the  voters  do  not  keep  to  party  lines  when  it  comes  to 
opening  streets,  building  school  houses,  making  appropriations 
and  acting  on  any  matters  of  business,  the  drift  of  which  is 
clearly  brought  home  to  them.  Not  only  will  the  interest  of 
the  voter  lead  him  away  from  partisanship,  but  the  outside 
.  pressure  tending  to  make  him  a  partisan  will  be  much  less, 
since  the  larger  part  of  the  motives  for  that  pressure — ^the 
legislative  and  administrative  spoils  to  be  gained  by  party 
success — will  disappear,  the  first  as  a  direct  consequence  of 
the  Referendum,  the  second  as  an  indirect  consequence  thru 
the  favored  growth  of  civil  service  reform. 

SIMPLIFICATION. 

6.  The  Referendum  will  simplify  as  loell  as  purify 
ELECTIONS.  It  is  much  easier  to  vote  upon  measures 
than  men.  A  man  is  a  cyclopedia  of  measures  bound  in  mys- 
tery; even  his  character  is  a  puzzle,  for  the  main  business  of 
opposing  politicians  is  to  fling  mud  at  each  other's  candidates 
until  it  is  impossible  to  tell  how  much  is  mud  and  how  much 
is  man,  or  some  other  animal. 

After  throwing  all  the  mud  they  can  dig  up  or  manufac- 
ture, the  next  duty  of  the  politicians  is  to  pile  up  a  lot  of  high- 
sounding  words  into  sentences  that  will  come  as  near  as  pos- 
sible to  covering  any  conceivable  thing  that  a  council,  legis- 
lature or  congress  may  do,  and  call  it  a  platform,  to  remind  us 
of  its  likeness  to  the  board  contraption  at  the  business  end  of 
a  summer  convention,  used  for  the  speakers  to  stand  on  during 
the  rumpus  and  afterward  cut  up  for  kindling. 


THE  POPULAK  VETO.  315 

Instead  of  a  tangled  mass  of  ignorance  and  vituperation, 
the  Referendum  will  bring  to  the  voters  a  series  of  clear-cut 
measures,  each  to  be  decided  on  its  otsti  individual  merits. 
Shall  we  have  proportional  representation?  Shall  women 
vote  on  the  same  terms  as  men?  Shall  street  car  companies 
be  required  to  put  effective  fenders  and  vestibules  on  the  trol- 
ley cars?  Shall  towns  and  cities  have  the  right  to  build  or 
buy,  own  and  operate  municipal  gas  and  electric  light  works 
if  they  msh?  Shall  they  own  and  operate  street  railways? 
Shall  they  make  their  own  charters?  These  are  questions 
easily  undei'stood  and  capable  of  decision  without  the  per- 
plexing admixture  of  personal  considerations  or  inquiries  as 
to  whether  a  Democratic  candidate  for  office  did  not  behave 
with  becoming  modesty  in  early  life,  or  loves  liquor  too  well, 
or  whether  the  tariff  ought  to  be  higher,  or  silver  freer,  or 
whether  the  hard  times  or  the  good  times  came  in  under  Re- 
publican or  Democratic  administration. 

That  the  referendum  would  disentangle  issues  is  one  of 
its  most  weighty  claims  to  our  attention.  At  present  we  have 
to  put  up  with  the  splinters  in  the  bread,  the  hairs  in  the  but- 
ter and  the  salt  in  the  ice  cream  or  go  without  our  food.  The 
party  cooks  stand  smiling  and  boA\dng  before  you,  urging  their 
bills  of  fare  on  which  you  can  plainly  read  such  questions  as 
these:  "Will  you  eat  a  hash  of  chicken  and  dog  meat?  or  will 
you  have  beef  and  rat  tail  in  croquettes?"  "Will  you  drink 
coffee  steeped  in  vinegar  or  chocolate  flavored  with  gall?" 
The  party  tailors  fix  up  three  or  four  suits  for  you  to  choose 
from.  "Will  you  wear  black  clothes  with  yellow  stripes  and 
a  very  tight  belt?  or  a  grey  suit  with  bright  green  shirt  and 
corn  creating  shoes?  or  a  silk  hat,  red  overalls  and  a  green 
necktie?" 

The  exceeding  complexity  of  the  judgments  required  of  our 
voters  and  the  impossibility  of  satisfactory  voting  under  a  sys- 
tem characteiized  by  Mixture  of  Issues,  is  well  brought  out 
by  :Mr.  Moffett 

To  put  the  "party  policy"  idea  to  t'he  test,  let  us  suppose  that  I 
desire  the  reform  of  the  tariff,  and  object  to  the  further  coinage  of 
silver,  the  intensity  of  my  wish  for  tariff  reform  being-  represented 


316  THE  OPEN  DOOR  OF  PROGRESS. 

by  100,  and  that  of  my  opposition  to  silver  legislation  being-  repre- 
sented by  99.  Suppose  that  my  party  passes  a  tariff  bill  satisfac- 
tory to  me,  and  also  passes  a  silver  coinage  bill.  I  am  called  upon 
to  render  judgment  upon  this  "policy"  at  the  next  election.  I  do 
violence  to  my  convictions  on  the  silver  question  for  the  sake  of 
my  preponderating  convictions  on  the  tariff;  but  my  dissatisfac- 
tion (99)  on  one  question  must  be  deducted  from  my  satisfaction 
(100)  on  the  other,  leaving  me  a  net  satisfaction  of  only  1  instead 
of  the  199,  which  I  could  have  had  if  I  had  been  allowed  to  vote  on 
each  measure  by  itself. 

But  this  is  putting  the  case  too  favorably  for  the  "policy"  theory. 
In  this  example  the  voter  does  get  some  opportunity,  however 
slight,  to  move  in  the  direction  of  his  preponderating  desires.  But 
the  situation  is  not  often  so  simple.  Suppose,  for  instance,  that  my 
ideas  of  a  national  "policy,"  quantitatively  expressed,  run  like  this: 

Tariff  reform 100' 

Opposition  to  silver  coinage 99 

Economy  in  government 80 

Annexation  of  Hawaii 50 

Extension  of  civil  service  laws 100 

Strong  navy 40 

469 

Suppose  that  my  party  meets  my  wishes  on  tariff  reform  and 
economy  (180),  and  the  other  party  on  silver,  Hawaii  and  the  navy 
(189),  while  neither  takes  a  satisfactory  position  on  the  civil  ser- 
vice (100).  Then,  if  I  vote  for  my  party,  I  vote  for  a  policy  of  which 
I  approve  of  only  180  parts  and  disapprove  of  289;  and  if  I  vote  for 
the  other  I  vote  for  a  policy  of  which  I  approve  of  189  parts  and 
disapprove  of  280.  Thus  my  net  satisfaction  is  109  less  than  nothing 
in  one  case  and  91  less  than  nothing  in  the  other.  And,  moreover, 
the  situation  is  almost  certain  to  be  still  further  complicated  by 
the  nomination  of  candidates  whom  I  do  not  consider  fit  to  hold 
office,  but  for  whom  I  must  vote  as  tJie  only  way  of  exerting  an  in- 
fluence on  the  choice  of  any  policy  at  all.  If  the  people  were  allowed 
to  vote  on  measures  as  well  as  on  men,  I  could  exert  my  full  power 
at  the  polls  in  favor  of  the  whole  469  points  of  the  policy  I  desired 
to  see  carried  out,  and,  in  addition,  I  could  vote  for  the  candidate 
I  thought  best  qualified  for  legislative  business,  regardless  of  his 
opinions  on  disputed  political  issues. 

The  American  theory  of  representative  government  is  that  "the 
members  of  a  lawmaking  body  should  be  true  representatives  of 
the  people,  endeavoring,  to  the  best  of  their  abilitj^  to  carry  out 
the  popular  will^  and  held  accountable  by  their  constituents  for  the 
fidelity  with  which  they  execute  their  trust."  This  idea  is  clearly 
stated  by  Mr.  Woodrow  Wilson: 

"It  should  be  desired  that  parties  should  act  in  distinct  organi- 
zations, in  accordance  with  avowed  principles.  Under  easily  recog- 
nized leaders,  in  order  that  the  voters  might  be  able  to  declare  by 


THE   POPULAR  INITIATIVE.  317 

their  ballots  not  only  their  condemnation  of  anj-  past  policy  by 
withdrawing  all  support  from  the  party  responsible  for  it,  but 
also  and  particularly  their  will  as  to  the  future  administration 
of  the  government  by  bringing  into  power  a  party  pledged  to  the 
ado^jtion  of  an  acceptable  policy." 

This  admits  the  principle  of  the  refei'endum,  the  right  of  the 
people  to  determine  the  law,  but  the  method  proposed  is  unwork- 
able. The  ti'ouble  lies  with  the  fact  that  the  harm  is  often  largely 
or  wholly  done  before  the  people  get  a  chance  to  condemn,  and 
with  the  false  assumption  that  a  ''party  policy"  is  a  clearly  defined 
unit,  which  may  be  unmistakably  condemned  or  approved  by  the 
voters.  The  fact  that  it  is  nothing  of  the  kind  is  one  that  lies  on 
the  very  surface  of  our  history.  We  have  never  had  a  national 
election  whose  returns  made  it  possible  to  determine  just  what 
policy,  in  the  sense  of  a  programme  of  legislation,  the  people 
wanted,  altho  there  have  been  very  few  elections  in  which  the 
popular  will  on  some  one  overshadowing  issue  has  not  been  made 
tolerably  clear.  It  was  reasonably  plain  in  1864,  for  instance,  that 
the  Korthern  people  favored  the  prosecution  of  the  war,  but  the 
election  threw  no  light  on  their  ideas  upon  reconstruction,  eman- 
cipation, negro  suffrage,  or  the  finances. 

The  tlieoi-y  of  representation  stated  above  is  based  on  true 
feeling,  but  it  does  not  work  out  in  practice,  because  of  the 
mixture  of  issues,  and  because  the  people  have  no  immediate 
check  upon  the  delegates;  even  if  the  people  voted  on  each 
issue  separately,  it  would  do  them  little  good  to  condemn, 
long  after  the  WTongs,  men  who  gave  away  Broadway  fran- 
chises or  leased  Philadelphia  gas  works.  It  will  not  bring 
back  the  horse  to  pass  a  vote  of  censure  on  the  hostler  a  year 
or  two  after  the  horse  was  stolen. 

7.  2'he  Referendum  icill  simplify  and  dignify  the  law. 
A  law  that  is  to  be  submitted  to  the  people  with  any  great 
hope  of  its  adoption  must  be  reduced  to  its  lowest  terms,^  and 
we  shall  stand  a  chance  of  avoiding  in  future  the  piling  up  of 
massive  tomes  of  useless  enactments  which  the  legislature  it- 
self knows  little  or  nothing  about  a  month  or  two  after  their 
passage,  even  if  understood  at  the  time,  and  which  became 
law  to  buttress  some  private  interest  or  to  fill  up  the  time  of 
our  legislators,  who,  being  elected  to  make  the  state's  laws, 


^  See  above  statement  of  facts  as  to  the  use  of  the  Referendum  where 
it  appears  that  people  are  apt  to  veto  on  general  principles,  a  complex  and 
ambiguous  law  which  cannot  be  clearly  comprehended  by  them— a  most 
bonefleent  tendency,  for  surely  a  people  ought  not  to  be  expected  to  oboy 
a  body  of  laws  they  cannot  understand. 


318  THE  CITY  FOB  THE  PEOPLE. 

seem  to  measure  the  fullfiUment  of  their  duty  by  the  number 
of  bills  they  enact  David  Dudley  Field  estimated  in  1871 
that  if  the  enacting  of  local  laws  were  left  to  the  communities 
to  which  they  apply,  the  work  of  the  New  York  legislature 
would  be  reduced  95  per  cent.  Elfweed  Pomeroy  says  that  in 
1892  alone  New  Jersey  passed  600  laws,  nmny  a  one  of  which 
was  longer  than  the  whole  Justinian  Code,  that  governed  the 
Roman  world  for  centuries.  These  New  Jersey  laws  also 
have  been  examined,  and  nearly  the  whole  of  them  found  to 
be  (1)  local  or  special  laws,  or  (2)  laws  that  fall  under  a  prin- 
ciple already  established,  so  that  they  are  mere  senseless  rep- 
etitions, or  (3)  acts  in  private  Or  corporate  interests  that  ought 
never  to  have  been  passed  by  any  body,  local  or  state.  In  later 
years  the  legislature  seemed  to  get  tired  sooner  than  in  '90, 
and  at  one  session  passed  only  about  400  laws,  but  they  have 
kept  up  their  reputation  for  useless  enactments  pretty  well, 
altho  some  good  laws  were  passed. 

Under  the  referendum  the  yearly  output  of  New  Jersey's 
law  factory  would  probably  be  reduced  from  400  or  600  to 
20  or  30 — such  at  least  is  the  result  indicated  by  the  expe- 
rience of  Switzerland,^  and  such  is  the  reason  of  the  case  upon 

'  For  the  last  twenty  years  the  cantons  of  Berne  and  Zurich,  where  thoy 
have  the  obligatory  referendum,  have  passed  an  avorage  of  4  or  5  laws 
a  year,  and  these  laws  are  short,  simple  and  easily  understood.  In  a  recent 
Swiss  national  legislative  session  of  the  usual  activity  65  measures  were 
Introduced  and  24  passed.  The  New  York  legislature  about  the  same  time 
passed  700  laws,  and  the  measures  Introduced  into  Congress  reached  the 
enormous  total  of  24,000.  It  Is  said  that  Switzerland  has  loss  than  one- 
seventh  as  many  lawyers  as  we  have  in  proportion  to  population. 

In  1895  Governor  Griggs,  of  New  Jersey,  said:  "I  have  absolute  faith  in 
the  judgment  of  the  people  when  intelligently  and  deliberately  formed." 

Aud  in  his  inaugural  he  used  the  following  powerful  language  iu  ex- 
pressing his  lack  of  faith  in  the  virtues  of  our  present  prolific  system  of 
legislation: 

"I  consider  it  most  important  that  you  should  at  once  restrict  the  vol- 
ume of  legislation.  The  mass  of  statute  law  has  now  become  so  immense 
as  to  be  almost  beyond  the  power  of  the  legal  mind  to  acquire  it  or  the 
judicial  mind  to  interpret  It.  It  was  intended  by  the  amendments  to  the 
constitution  adopted  in  1875  to  decrease  the  quantity  of  statute  law  by  the 
abolition  of  special  legislation  upon  several  subjects,  notably,  the  govern- 
ment of  counties  and  municipal  corporations.  Such  decrease  was  for  several 
years  effected.  But  gradually,  aided  by  experience  and  a  sharpened  inge- 
nuity, the  draughtsmen  of  statutes  came  to  know  ho'iv  to  draw  up  laws 
which,  while  possessing  the  form  of  generality  required  by  the  constitution, 
had  all  the  substance  of  special  application  to  the  desired  locality  without 
becoming  fastened  to  any  unwilling  municipality.  *****  A  strik- 
ing Instance  of  manifold  legislation  exists  in  the  laws  relating  to  boros^ 
These  forms  of  local  government  did  not  exist  until  recently.  They  were 
all  created  under  so-called  general  laws.  The  spirit  and  letter  of  the  consti- 
tution required  that  they  should  be  governed  by  a  uniform  system.  Yet  we 
find  three  different  general  acts  now  In  force  regulating  the  creation  and 
government  of  boros.  At  each  session  of  the  Legislature  numerous  amend- 
ments to  each  of  the  three  systems  are  passed,  until  this  one  title  in  the 
General   Statutes  covers  111  pages.     So  variant,   inconsistent   and   confused 


DIRECT  LEGISLATION.  319 

an  analysis  of  the  laws  now  enacted.  The  principles  of  the 
vX>nimon  law,  with  a  few  simple  modifications,  are  entirely 
tjufiicient  for  any  state.  There  would  be  more  justice  and 
less  litigation  by  far,  if  courts  were  left  free  to  apply  broad 
principles  instead  of  being  compelled  to  give  attention  to  the 
rigid  lan^iage  of  narrow-minded,  short-sighted  legislators, 
and  if  men  were  able  to  carry  the  law  in  their  conscienc  s 
instead  of  requiring  a  two-horse  team  to  convey  it  and  a  line 
of  lawyers  and  judges  from  the  justice  court  to  the  supreme 
court  of  the  United  States  to  explain  it  to  him,  and  then  be 
in  danger  that  they'll  turn  round  next  day  and  declare  it  is 
the  other  way.  It  is  one  of  the  most  ridiculous  things  in  mod- 
em civilization  that  every  man  is  presumed  to  know  the  law, 
while  everybody  knows  that  nobody  knows  it,  not  even  the 
judges  of  the  Supreme  Court.  It  is  impossible  to  keep  track 
of  one  thousandth  part  of  the  statutes  of  state  and  nation;  the 
legislators  don't  know  much  about  them  by  the  time  the  ink 
is  dry,  except,  perhaps,  the  bills  they  drew  themselves,  and 
I  have  known  legislators  who  did  not  know  much  about  their 
own  bills  even  while  advocating  them.  But  if  some  poor  fel- 
low in  blissful  ignorance  happens  to  run  up  against  some 
words  in  a  musty  volume  in  the  law  library,  and  his  enemy's 
lawyer  happens  to  find  those  words,  the  poor  innocent  has  to 
suffer  for  not  sitting  up  nights  to  learn  the  statutes.    The  fact 


are  these  acts  that  no  legal  advisor  or  judicial  interpreter  can  safely  say 
what  the  law  is  on  many  subjects  relating  to  boros. 

"For  some  years  past  the  annual  volume  of  the  laws  has  been  growing 
in  thickness.  As  an  example,  the  most  recent,  that  of  1895,  contains  106 
diflferent  acts  relating  to  cities,  43  relating  to  boros,  33  relating  to  townships, 
13  relating  to  villages.     It  cannot  be  that  any  such  number  are  necessary. 

"Take  some  other  subjects.  There  are  nine  separate  amendments  to  the 
school  law,  seven  different  acts  on  the  subject  of  sidewalks,  eight  relating 
to  the  State  House,  five  relating  to  swamps  and  marshes.  Similar  variety 
and  multiplicity  will  be  found  in  any  volume  of  annual  statutes  for  the  last 
six  or  seven  years. 

"When  we  consider  that  the  power  of  legislation  is  the  greatest  that  can 
be  exercised  by  any  human  agency,  that  every  law  changes  the  rights  and 
modifies  the  duties  of  a  greater  or  less  number  of  citizens,  it  is  proper  to 
inquire  whether  proposed  laws  are  sufBeiently  considered  before  they  are 
adopted.  The  same  tendency  to  multitudinous  and  slipshod  legislation  pre- 
vails in  other  states  of  the  Union,  and  has  attracted  the  attention  of  many 
thoughtful  persons. 

"Besides  the  uncertainty  and  confusion  that  ensues  from  the  existence  of 
so  many  separate  statutes,  the  easy  change  of  existing  law  tends  to  create 
popular  disrespect  for  the  sanctity  of  the  law.  What  can  be  so  readily  made 
and  so  easily  altered  can  be  fairly  considered  as  of  small  importance. 

"The  General  Statutes  of  the  State  now  in  press  will  comprise  three  large 
volumes  of  over  1,000  pages  each.  ♦«*••*  Unless  we  confess 
that  our  legislative  system  is  a  f.nilure,  we  must  find  a  method  of  remedying 
this  excess."    (See  Appendix  II  T.) 


320         GOVEKNMEKT  BY  AND  FOK  THE  PEOPLE. 

is  that  our  legislatures  spend  most  of  their  time  in  establishing 
stumbling  blocks  in  the  paths  of  justice  and  the  people,  and 
the  Referendum  will  not  be  long  in  use  before  the  great  mass 
of  statute  law  will  be  replaced  by  a  few  simple  provisions  im- 
partial to  all,  in  thoro  accord  with  justice  and  easy  to  learn. 

Local  legislation  should  be  performed  by  counties  and  mu- 
nicipalities under  general  state  laws,  and  private  legislation 
should  not  be  tolerated  at  all.  Numerous  bills  that  are  now 
rushed  thru,  very  often  without  discussion  or  understanding 
by  the  legislators,  would  never  be  introduced  under  the  refer- 
endum, the  certainty  of  a  popular  veto  making  them  hopeless. 
I  have  even  known  lawyers  to  secure  the  introduction  of  a 
bill  to  change  the  law  applicable  to  a  case  they  had  in  hand  so 
it  would  work  in  their  favor.  Such  action  is  an  invasion  of 
the  judicial  field  by  the  legislative  power.  Senator  James 
Bradley,  of  New  Jersey,  believes  this  sort  of  thing  to  be  quite 
prevalent.    He  says: 

"The  present  mode  of  legislation  is  behind  the  age.  I  have  be- 
come a  sincere  convert  to  the  Referendum.  The  mass  of  bills  pre- 
sented was  something  to  startle  one.  The  provisions  of  one  bill 
lapped  on  another,  and  I  believe  many  an  indolent  lav^ryer  found 
it  easier  to  frame  a  bill  covering  just  what  points  he  needed  in 
some  case  he  had  on  hand  than  to  exercise  his  brain  in  looking  up 
the  immense  number  of  laws  we  have  on  every  subject  on  our 
statute  books.  The  looseness  of  legislation  should  grieve  every 
good  citizen  of  the  state,  and  I  hope  the  day  is  not  far  distant 
when  the  people  will  turn  to  the  Referendum,  and  pass  laws  more 
general  in  their  character  and  less  of  them." 

The  nation  is  deluged  with  laws,  13,000  new  ones  al- 
together in  a  single  year  sometimes,  and  the  people  know 
nothing  of  most  of  them  till  they  see  them  in  the  newspapers, 
when  it  is  a  good  while  too  late  to  stop  them,  and  indeed  not 
one  per  cent,  of  the  people  have  time  or  interest  or  eyesight 
to  go  thru  the  wilderness  of  nonpareil  nonsense  and  the  muss 
of  technicalities  called  laws. 

Direct  Legislation  will  stop  a  large  part  of  the  present  law- 
making, turn  over  another  large  part  to  municipalities,  and 
simplify  what  remains  to  the  infinite  relief  of  the  people  and 
the  great  lightening  of  the  burden  now  resting  upon  our 
legislatures. 


THE    INITIATIVE    AND    EEFEKENDUM. 


321 


The  over  prodiiction  of  laws  is  a  sign  of  a  low  grade,  unde- 
veloped legislative  system.  It  is  simply  the  natural  fecundity 
of  low  organisms.  A  fish  has  multitudinous  offspring  at  a 
single  session,  an  elephant  only  one:  but  the  quality  is  in  in^ 
verse  ratio  to  the  quantity.  The  Referendum  mil  lift  our  leg- 
islative system  fi"om  the  fish  stage  to  the  elephantine  or  the 
human  plane. 

Of  course  the  dignity  of  the  law  will  increase  with  the 
diminution  in  quantity  and  improvement  in  quality.  A  few 
examples  -will  sevxe  to  illustrate  tJie  degree  of  dignity  pertain- 
ing to  some  of  our  legislative  proceedings  under  the  present 
]>lan. 

In  New  York  a  bill  providing-  that  every  oyster  stew  must  con- 
tain 13  oj^sters  passed  one  house. 

The  Minnesota  legislature  passed  a  law  forbidding  the  sale  of 
any  pie  over  24  hours  old  at  any  lunch  counter. 

In  Arkansas  a  bill  Avas  introduced  providing  that  any  bachelor 
over  30  must  pay  a  tax  of  $50  a  year  for  each  year  he  remains  un- 
married, unless  he  can  bring  an  affidavit  from  a  reputable  woman 
stating  that  he  has  offered  himself  to  her  in  marriage  that  jear. 
They  called  it  the  "single  tax."  I  do  not  know  whether  it  passed 
or  not. 

Texas  passed  a  resolution  that  her  skies  are  bluer  than  those  of 
Italy. 

Iowa  prohibited  bloomers. 

If  I  remember  rightly,  one  House  at  Albany  passed  a  law  forbid- 
ding roosters  to  wear  trousers  on  the  public  streets.  Some  man 
had  exhibited  a  few^  chickens  dressed  in  more  humorous  fashion 
than  results  from  pulling  out  their  feathers,  and  a  grave  and  rev- 
erend member  of  the  legislature,  deeming  the  show  unseemly,  in- 
troduced a  bill  to  regulate  the  clothing  of  chickens. 

In  New  Jersey  the  proper  length  of  clams  is  regulated  by  statute 
-  -they  must  be  one  inch  long  to  escape  the  legislative  prohibition. 
And  New  York  prohibits  lobsters  less  than  six  inches  long. 

In  Indiana  the  Senate  passed  an  act  providing  that  no  man  shall 
be  fined  more  than  $250  for  kissing  a  woman.  The  bill  was  intro- 
duced by  a  man  who  kissed  a  woman  without  her  consent.  She 
had  sued  him,  and  as  she  was  pretty  he  feared  the  jury  would 
render  a  heavy  verdict  against  him,  and  he  introduced  the  said 
bill  to  head  off  the  jury. 

RESPECT    FOR    LAW. 

8.  The  Referendum  icill  aid  the  enforcement  of  the  law, 
for  the  people  will  grow  up  with  it.     It  will  he  law  because 

21 


322  THE   END   OF   CORRUPT   LEGISLATION. 

the  people  want  it,  and  they  will  stand  behind  it,  and  see  that 
it  is  carried  into  effect.  Nothing  is  of  more  importance  to  a 
nation  than  a  deep  reverence  for  law;  but  reverence  dies  wlien 
legislation  is  dragged  in  the  mire,  and  when  the-  people  regard 
the  law-making  bodies  vdth  dread  and  disgust.^  "Why  is  it 
that  we  revere  our  constitutions  so  deeply?  It  is  because  they 
are  the  work  of  the  people  and  not  of  a  band  of  politicians 
whose  motives  are  open  to  question.  The  Referendum  will 
fold  tlie  whole  law  in  new  confidence,  endow  it  vdth  the 
strength  of  public  opinion,  and  give  it  new  force  for  tlie  main- 
tenance of  order  and  the  accomplishment  of  progress. 

ELEVATING  POLITICS  AND  ATTRACTING  GOOD  MEN  TO  PUBLIC  LIFE. 

9.  The  Referendum  will  elevate  politics  as  a  profession 
and  bring  the  best  men  again  into  political  life.  Govern- 
ment is  intrinsically  the  noblest  of  all  professions,  for  it  in- 
cludes and  controls  all  others,  as  the  captain  of  a  ship  holds 
the  destiny  of  all  on  board.  But  when  power  is  prostituted 
to  evil  ends  it  becomes  despicable.  The  people  no  longer  re- 
gard membership  in  a  city  council  or  a  legislature  as  a  badge 
of  honor,  but  rather  as  a  mark  of  suspicion.  He  is  most  prob- 
ably in  league  Avith  the  powers  of  darkness  or  he  would  not 
have  been  elected.  Honest  men  have  little  weight  in  the 
councils  of  many  of  our  cities;  they  find  the  atmosphere  un- 
congenial, and  retire  in  disgust,  or  if  they  persist  in  their  duty 
tihey  are  soon  hounded  out  by  the  ring,  which  finds  them  in- 
convenient. Many  of  our  wisest  and  purest  men  look  on  poli- 
tics as  too  dirty  to  touch.  They  will  not  descend  to  the  mean- 
ness and  cunning  usually  necessary  to  secure  ofiice,  nor  sub- 


The  motives  of  city  councils,  state  legislatnres  and  national  congresses 
are  everywhere  called  In  question.  Nobody  has  much  confidence  in  their 
public  spirit,  conscience  or  wisdom.  New.spapor.s  and  magazines  are  full 
of  slighting  remarks  about  politics;  and  so  besmirched  have  politics  become 
by  the  multitudinous  bad  practices  of  legislators  that  it  Is  as  much  as  a 
good  man's  reputation  Is  worth  to  have  anvthing  to  do  with  practical  poli- 
tics. However  pure  his  motives  may  really  be,  he  will  find  it  almost  im- 
possible to  convince  the  public  that  his  interest  is  unselfish  and  bis  methods 
conscientious,  so  firmly  is  the  idea  of  chicanerv  linked  in  the  public  mind 
with  the  Idea  of  practical  politics.  Laws  made  bv  legislators  regarded  in 
such  a  light  cannot  have  the  respect  of  the  people  to  anv  such  degree  as 
laws  directly  sanctioned  by  the  citizens  at  the  polls,  or  made  bv  legislative 
bodies  under  the  popular  veto  and  subject  to  conditions  in  every  wav  tend- 
ing to  eliminate  fraud  and  private  legislation. 


THE  POPULAR  VETO. 


323 


ject  themselves  to  the  cniel  suspicions  aiid  slanders  that 
often  accompany  public  life.  Mudslinging  and  the  winning 
power  of  chicanery  too  ofteoi  discourage  the  wise  and  good 
and  leave  the  field  to  the  most  callous  and  unscrupulous. 

With  the  referendum  all  this  will  change.  Attention  will 
be  directed  from  men  to  measures.  The  power  for  evil  of 
our  office  holders  will  shrink  to  a  small  fraction  of  its  present 
bulk.  Bad  men  will  be  discouraged  from  entering  or  con- 
tinuing in  politics  because  they  will  no  longer  be  able  to  ac- 
complish their  evil  purposes.  With  these  changes  the  su&- 
picions  and  mudfling-ing  now  so  prevalent  will  decrease,  be- 
cause their  causes  will  subside.  As  discussion  of  specific 
measures  takes  the  place  of  partisan  abuse,  men  of  probity 
and  ^visdom  will  feel  their  influence  with  the  people  increase, 
and  will  delight  to  exercise  their  powers  of  mind  and  con- 
science in  the  direction  of  public  affairs  when  they  can  do  so 
without  stain  or  ignominy.  The  increasing  weight  of  good- 
ness and  the  returning  purity  of  political  life  will  induce  our 
best  men  once  more  to  take  a  leading  part  in  it  and  stand  for 
office  in  council,  legislatui*e  and  congress  as  they  used  to  do 
in  the  patriotic  days  of  the  revolution.  The  Senate  will  again 
become  an  Assembly  of  Sages  instead  of  a  Club  of  Million- 
aires, and  it  ^vill  no  longer  be  necessary  for  a  man  like  Beecher 
to  pray  "Lord  keep  us  from  despising  our  rulers,  and  keep 
them  from  behaving  so  we  can't  help  it." 

10.  The  Referendum  will  help  to  bring  out  a  full  vote  of 
the  better  and  more  intelligent  citizens,  ichile  it  would  tend, 
as  a  rule,  to  eliminate  the  votes  of  the  less  intelligent — the 
very  reverse  of  the  effects  which  the  present  system  tends  to 
produce.  While  speaking  of  the  Use  of  the  Referendum  in 
the  United  States  we  called  attention  to  a  number  of  facts 
showing  the  general  tendency  of  the  referendum  to  cause  an 
automatic  disfranchisement  of  the  unintelligent,  so  that  we 
wall  confine  ourselves  here  to  the  other  branch  of  the  propo- 
sition before  us. 

In  the  first  place  the  interest  will  generally  be  more  dis- 
tinct in  a  vote  on  the  grant  of  a  franchise,  civil  sendee  reform, 
appropriations    for    roads,    schools,    etc.,    than    on    a    vote 


324  THE  OPEN  DOOR  OF  PROGRESS. 

whether  A  or  B  shall  be  councilman  or  mayor.  And  in  the 
second  place,  the  eifectiveness  of  the  vote  will  be  greater. 
The  influence  of  these  facts  in  securing  a  full  vote  has  been 
very  noticeable  when  Boston,  Xew  York  and  other  cities  have 
submitted  questions  to  the  direct  vote  of  the  peojde.  In  Pres- 
idential and  GuberaatOTial  elections,  when  a  heavy  vote  is 
polled,  it  is  often  largely  due  to  the  enthusiasm  created  by 
some  great  issue  involved  in  that  election ;  when  no  such  issue 
is  at  stake  the  mere  vote  for  candidates  is  usually  much 
smaller.  In  the  ordinary  process  of  making  laws  people  think 
that  one  of  two  machines  will  do  the  work  any  way,  it  makes 
little  difference  which,  and  interference  is  useless.  It  will 
make  no  odds  whetlier  they  go  to  the  polls  or  not.  They 
cannot  acomplish  anything  except  by  using  the  methods  of 
the  machine,  and  sinking  to. the  level  of  unscnipulous,  con- 
scienceless war.    Mr.  Arrowsmith  says : 

"A  few  years  ago  the  New  Jersey  legislature  submitted  to  the 
citizens  of  Orange  the  acceptance  or  rejection  of  a  measure  pi'o- 
viding  for  the  election  of  a  new  officer,  president  of  council,  at  a 
salary  of  $1,000  per  annum.  Now,  out  of  a  citizenship  of  upwards 
of  5,000,  almost  altogether  opposed  to  it,  only  a  small  percentage  of 
the  voters  expressed  themselves  upon  the  question.  I  did  not  vote 
upon  it,  and  my  neighbors  ejiihibited  a  similar  indifference.  Why? 
simply  because  we  Orange  folks  knew  that  our  wishes  would  be  set 
at  naught,  and  the  politicians  would  come  to  Trenton  and  carrj' 
their  point  with  or  without  our  consent." 

Such  a  reference  was  not  a  referendum,  because  the  vote 
of  the  people  was  not  intended  to  be  final.  It  was  a  sham; 
the  people  knew  it  lacked  effectiveness,  and  altho  they  were 
interested  in  the  question  they  stayed  at  home.  The  real  ref- 
erendum is  final  and  effective,  and  encourage  (lie  people  to 
go  to  the  polls  for  the  same  reason  that  it  encourages  the  best 
men  to  enter  political  life.  It  is  full  of  streng-th,  hope  and 
progress.  Let  the  people  once  feel  that  they  are  really  sov- 
ereign and  they  will  vote  and  look  after  their  ovn\  interests, 
and  instead  of  40  to  60  per  cent,  stay-at-homes  among  the 
"better  classes,"  who  leave  the  field  to  the  machines,  we  shall 
have  a  reasonably  satisfactory  expression  of  the  people's  mil. 
Ask  a  man  if  he  wants  a  tenderloin  steak  or  a  bit  of  leather 
for  his  dinner,  and  if  he  knows  he  will  get  leather  any  way 


THE    POPULAR   INITIATIVE.  325 

he  may  keep  liis  mouth  shut;  but  if  he  knows  that  what  he 
says  \vill  settle  the  question,  he  will  express  himself  vigor- 
ously. 

HELP  THE  PAPERS  TO  TELL  THE   TRUTH  AND  USE  DIGNIFIED 
ENGLISH. 

11.  The  elevation  of  the  press  is  one  of  the  effects  of  the 
Referendum,  and  one  which  alone  is  sufficient  to  make  it  an 
incalculable  boon.  One  of  the  most  noticeable  and  important 
of  all  the  many  changes  produced  in  Switzerland  by  the  adop- 
tion of  Direct  Legislation,  is  the  substitution  of  fair  debate 
for  noisy  vituperation  in  the  columns  of  the  daily  papers.  It- 
will  do  a  similar  work  in  America,  and  the  Lord  knows  that: 
we  sorely  need  such  a  change.  As  measures  are  put  in  the 
place  of  men,  sober  discussion  mil  take  the  place  of  the 
traffic  in  abuse.  The  tendency  to  manufacture  facts,  and 
deluge  the  country  with  sophistries  will  not  so  readily  yield^, 
but  even  in  this  respect  there  is  sure  to  be  a  great  improve- 
ment. When  the  people  come  to  direct  their  own  affaire  they 
will  demand  the  truth ;  they  will  want  the  actual  facts,  so  that 
they  may  judge  correctly  in  respect  to  their  business,  just  as 
a  board  of  directors  of  a  private  corporation  wants  the  facts,, 
and  regards  deception  of  themselves  as  one  of  the  most  un- 
pardonable sins. 

THE  people's   university. 

12.  Direct  Legislation  will  have 41  profound  educational 

effect.  Wendell  Phillipsi  said  lonig  ago  that  the  discussions 
accompanying  presidential  electioms  give  the  people  a  tre- 
mendous intellectual  lift  every  four  years.  With  the  Kef- 
erendum,  the  progress  will  be  continuous  instead  of  spasmodic, 
Avith  intervals  wide  enuf  for  the  pupils  to  forget  nearly  all 
that  they  learn  at  each  lesson,,  as  at  present. 

iS^owhere  on  the  face  of  the  globe  do  you  find  as  high  an 
average  of  keen  intelligence  as  among  the  men  of  a  New  Eng- 
land town  trained  from  boyhood  in  the  town-meeting.  Con- 
tinual voting  on  measures  supplies  an  invaluable  discipline 


326  THE  CITY  FOR  THE  PEOPLE. 

in  place  of  the  retrograde  influences  often  involved  in  per- 
sonal elections.  Every  citizen's  sphere  of  thought  and  re- 
sponsibility mil  be  enlarged  by  the  Referendum,  and  gi-owth 
will  be  the  result.  Besides  being  a  University  in  itself,  the 
Referendum  will  make  the  public  welfare  depend  so  directly 
and  obviously  on  the  morality  and  intelligence  of  the  people, 
and  not  on  the  sagacity  and  probity  of  a  few  individuals,  that 
patriots,  statesmen  and  business  men  will  coanbine  to  develop 
to  the  utmost  every  means  of  educating  the  masses,  and  a 
great  impetus  will  be  given  to  popular  education,  with  a  cor- 
responding improvement  in  the  results. 

It  is  interesting  to  note  that,  according  to  Mulhall,  Switzer- 
land is  the  best  schooled  country  in  the  world.  The  percent- 
age of  children  attending  school  is  far  above  that  in  any 
other  country  in  Europe  or  any  state  in  America  The  per 
capita  expenditure  for  education  is  correspondingly  high,  and 
the  diffusion  of  knowledge  is  remarkable.^  The  Referendum 
educates  the  people  directly,  and  creates  a  powerful  sentiment 
in  favor  of  the  thoro  education  of  the  children. 

History  has  only  one  other  example  of  a  people  so  univer- 
sally cultivated,  and  that  is  the  still  more  remarkable  instance 
of  the  Athenians.  Among  all  the  Greeks,  they  were  the  most 
cultured,  and  they  were  far  the  most  democratic.  The  Age 
of  Pericles,  and  immediately  succeeding  years,  when  Grecian 
civilization  was  at  its  height  in  Athens,  with  a  cluster  of 
great  philosophers,  statesmen  and  poets  such  as  the  world 
has  never  seen  before  or  since,  corresponded  with  the 
full  bloom  of  democracy.  All  power  was  in  the  hands  of 
the  people,  who  made  the  laws  by  direct  discussion  and  vote 

lit  Is  Interesting  to  compare  the  expenditures  for  education  and  for 
tne  army  m  Switzerland  and  In  some  of  the  other  chief  countries  of  Europe. 
The  figures  are  from  the  Clarion  of  March  12,  1898: 

p»....»_  Kxpendlture  per  capita 

^""""^  Kor  Army  For  Fob.  Education 

„  •.  d.  8.  d. 

France ,7    .  _    _ 

Great  Britain ,1    „  %\ 

Holland. :::::::r:::;:::::::;::::::;;;:;;;;         if  ?  It 

catl?r"^"'*'^**  spends  comparatively  little  on  the  army  and  much  on  edu- 


BISECT  LEGISLATION.  327 

in  public  assemblies  of  the  citizens.  And  the  bistorian,  Free 
man,  says  that  the  average  intelligence  of  the  assembled  free- 
men of  Athens  was  higher  than  the  average  intelligence  of 
the  English  House  of  Commons,  which  is  probably  the  equal 
of  our  Congress. 

DEVELOPS  MORALS  AND  SLANHOOD. 

13.  The  emotional  developmetit  of  the  people,  as  well  as 
their  intellectual  growth  icill  follow  from  the  Referendum. 
The  consciousness  of  added  power  and  responsibility  will  give 
the  voters  a  new  digiiity  and  a  nobler  manhood.  They  mil 
feel  like  judges  in  the  court  of  final  appeal.  Xot  mere  se- 
lectors of  somebody  to  boss  them,  but  rulers  themselves.  Not 
mere  nominators  of  a  sovereign,  but  sovereigns.  Such  changes 
in  spiritual  attitude  and  environment  always  work  most  pow- 
erfully upon  the  moral  and  emotional  development  of  the 
indivadual  and  the  race.  The  patriotic,  law-abiding,  law-en- 
forcing sentiments  of  the  people  will  be  specially  intensified 
by  the  Referendum,  because  they  will  know  that  the  country 
is  theirs  not  merely  in  name,  but  in  fact;  not  merely  to  live 
in  and  use  as  some  one  else  bids  them,  but  to  mould  and  con- 
trol for  themselves. 

A  STEADYING  INFLUENCE THE   SOCIAL  FLY-WHEEL. 

14.  The  Referend^im  favors  stability  by  developing  pa- 
triotism and  education,  securing  greater  simplicity  and  better 
enforcement  of  law,  driving  bad  men  out  0:f  politics  and  bring- 
ing good  men  in,  supplying  a  safety  valve  for  popular  discon- 
tent, and  requiring  a  more  careful  consideration  of  legisla- 
tion. Long  use  of  the  Referendum  has  shown  that  it  is  con- 
servative. This  clearly  appears  from  the  facts  already  stated 
concerning  its  use  in  this  countrv',  and  its  record  in  Switzer- 
land for  thirty  years  shows  that  two-thirds  of  the  measures 
submitted  to  the  people  we(re  rejected  by  them.^    If  the  votes 


1  Direct  Legislation  Record,  1897,  p  17:.  One  of  the  most  Important  of 
the  advantages  of  the  Referendum  Is  the  fact  that  it  forms  a  drag  on  hastji 
legislation.  There  are  two  reasons  for  this  tendency:  First,  an  agent  is  apt 
to   give   more   consideration    to   his   action   when   he   Ijnows   that    the    watch 


328         GOVERNMENT  BY  AND  FOR  THE  PEOPLE. 

of  the  legislators  had  been  final,  many  of  the  rejected  meas- 
ures would  have  been  law  and  some  of  the  best  measures 
adopted  by  the  people  would  not  have  been  passed  by  the 
legislators.  An  open  door  to  popular  decision  gives  discontent 
a  peaceful  vent — prevents  its  accumulation  and  draws  it 
away  from  destructive  methods  of  escape.  The  present  sys- 
tem affords  it  no  reasonable  means  of  exei-timg  its  power,  and 
allows  it  to  acumulate  indefinitely.  The  imjwrtance  of  this 
matter  can  hardly  be  overestimated.  Anglo-Saxon  manhood, 
confined  beneath  the  pressure  of  accumulating  injustice,  is 
the  most  dangerous  explosive  known  to  history.  Macaulay 
predicted  that  it  would  destroy  America — industrial  oppres- 
sion of  hopeless  masses  leading  to  revolution;  but  Macaulay 
did  not  know  about  the  Referendum  that  is  going  to  re- 
lieve the  pressure,  we  hope,  before  the  explosion  comes. 

The  Referendum  reduces  to  a  minimum  the  danger  of 
broken  j)eace.  Nothing  can  oppose  so  strong  a  bulwark 
against  an  appeal  to  passion  as  the  knowledge  that  the 
PEOPLE  made  the  law  and  can  change  it  when  they  please 
— the  knowledge  that  there  is  no  selfish  power,  deaf  to  reason 
and  impervious  to  sympathy,  imprisoning  progress  in  the  dun- 
geons of  iniquity,  whence  only  force  can  hope  for  speedy  re- 
lease, but  that  deliberate  and  careful  discussion  before  the 
great,  honest,  justice-loA-ing  people  w^ill  remedy  every  wrong 
Such  knowledge  will  remove  the  causes  that  have  produced 
the  growth  of  anarchy.  It  is  smotJiering  discontent  in  hope- 
lessness that  breeds  poison.  Every  anarchist  I  ever  heard 
express  himself  had  much  of  truth  in  what  he  said.  It  was 
his  hopelessness  of  obtaining  the  justice  he  sought  by  peace- 
ful means  that  made  him  advocate  fire  and  bomb.  An  an- 
archist generally  is  a  man  who  feels  intensely  the  pressure  c.i 
wrong  conditions,  and  whose  nature  has  more  of  reckl^sness 
than  hope.     Give  us  the  Retfeirendum  and  the  path  will  be 


and  control  of  his  principal  are  continually  upon  him,  than  if  he  is  beyond 
the  reach  of  interference  and  can  do  as  he  likes  without  interruption.  Sec- 
ond, not  only  will  the  legislators  give  more  attention  to  wliat  they  do  when 
the  people  are  to  pass  on  their  acts,  but  the  fact  that  a  large  bodv  of  citi- 
zens must  malve  up  their  minds  before  the  bill  can  become  a  law  will  Itself 
necessitate  far  more  discussion  of  the  measure  than  when  only  one  or  a  few 
persons  do  the  deciding,  especially  if  influence,  money  or  partisanship  give 
the  few  their  decision  beforehand  without  the  trouble  of  discussion. 


THE    INITIATIVE    AND    EEFEKENDUM.  329 

SO  plain  that  Anarchy  \v\\\  soon  go  out  of  business.  There  is 
no  such  thing  in  Switzerland.  It  is  foreign  to  real  democracy, 
for  there  the  ohstnietion  to  your  wishes  is  the  people,  and 
you  can't  get  rid  of  them  with  a  bomb. 

It  is  sometimes  objected  by  those  who  oppose  Direct  Legis- 
lation, that  the  Initiative  will  give  all  sorts  of  cranks  a  chance 
to  bring  their  ideas  to  the  front.  But  that  is  really  one  of 
the  advantages  of  the  institution.  It  enables  discontent  to 
find  out  just  how  big  it  is,  gives  it  form  and  precision,  sifts 
out  the  kernel  of  truth  and  justice  at  the  heart  of  it,  lifts  it 
into  the  fresh  air  of  public  discussion  before  it  has  a  chance 
to  fenuent  and  explode.  Even  the  worst  cranks  would  prob- 
ably be  diverted  from  \'iolence  to  peaceful  petitions  and  ef- 
forts to  educate  the  public  to  their  ideas.  The  petitions 
would  cause  no  trouble,  not  even  the  effort  of  a  veto,  until 
they  rose  to  20,000  in  Massachusetts  and  70,000  in  Xew 
York,  and  if  there  were  20,000  citizens  in  the  Bay  State  who 
were  united  in  the  opinion  that  a  certain  change  should  be 
made  in  the  law  of  the  state,  surely  the  matter  would  be 
worthy  the  careful  attention  of  the  people. 

Under  the  Referendum,  the  street  car  men  of  Brooklyn 
or  Philadelphia  would  not  give  up  their  work  for  the  priva- 
tions and  turmoil  of  a  strike,  nor  would  they  suffer  in  hope- 
less silence,  but  they  would  state  their  ginevances  at  the  head 
of  a  petition  for  the  Referendum  on  Municipal  Ownership  of 
the  Roads,  and  get  their  friends  to  circulate  it,  and  then  vote 
tlie  secret  ballot  for  the  transformation  that  would  give  them 
a  voice  in  the  government  of  the  industry  in  which  they  are 
engaged. 

Under  the  Referendum,  the  unemployed  WK)uld  not  parade 
the  streets  of  our  cities  in  angrA',  hopeless  mobs,  but  they 
would  set  the  wheels  of  the  law  in  motion  to  give  them  com- 
plete justice,  instead  of  the  patchwork  of  hated  charity. 

Xot  only  will  revolutionary  and  disruptive  forces  beoome 
comparatively  harmless  under  the  Referendum,  and  progres- 
sive forces  work  more  smoothly  and  steadily,  but  even  the 
unavoidable  difficulties  and  errors  incident  to  the  government 
of  large  bodies  of  men  will  lie  more  serenely  and  calmly  dealt 


330  THE  END  OF  COEBUPT  LEGISLATION. 

with.  People  are  not  so  apt  to  find  fault  witli  what  they  do 
themselves  as  with  what  is  done  by  others.  Take  a  man  who 
is  scolding  about  something  and  prove  to  him  tliat  it  is  his 
own  doing  and  he  becomes  quiet  and  moderate.  Watch  a 
mechanic  trying  to  use  a  defective  piece  of  machinery  made 
by  some  one  for  whom  he  is  not  responsible,  and  see  how  blue 
the  air  will  be  with  deprecation  or  something  worse;  but  let 
bim  endeavor  to  us©  an  imperfect  machine  made  by  himself, 
and  see  how  good  natured  and  tolerant  he  is,  and  how  pa- 
tiently he  seeks  to  remedy  the  defect.  So  censure  and  ridi- 
cule without  measure  are  heaped  upon  the  acts  of  councils, 
l^islatures  and  congresses,  but  note  the  atmosphere  of  quiet 
acquiescence  when  the  people  have  spoken,  even  tho  the  in- 
terests involved  are  of  the  most  tremendous  moment  and  the 
preceding  struggle  was  most  intense. 

The  following  selections  illustrate  these  points.  Read  first 
a  few  of  the  extracts  collected  by  Mr.  Pomeroy,  showing  the 
light  in  which  many  legislative  bodies  are  regarded,  and  then 
compare  the  expressions  of  cordial  acquiescence  in  the  people's 
decision  in  1896,  on  the  part  of  those  who  had  advocated  men 
and  measures  that  were  not  successful  at  the  polls. 

CONGRESS. 

From  the  Outlook  (religious). 
"Congress  has  adjourned.     It  has  lived  without  achievement;    it 
dies  veithout  honor.    It  was  elected  by  an  overwhelming  majority. 
At  the  end  of  its  career  it  was  defeated  by  a  majority  not  less  sig- 
nificant." 

From  the  New  York  Herald. 
"Congress  drew  its  final  official  breath  amid  a  wild  saturnalia. 
Champagne  flowed  like  water,  women  of  ill  repute  swarmed  the 
corridors  and  sang  songs  in  the  public  restaurants  with  inebriated 
Congressmen  in  the  small  hours  of  the  morning.  Between  roll 
calls  members  staggered  between  their  places  and  the  bottle." 

NEW    YORK    LEGISLATURE. 

From  the  Review  of  Reviews. 
"Republican  politicians  at  Albany  turned  out  to  be  as  selfish 
and  unscrupulous  as  their  Democratic  predecessors  had  been.     The 
opposition  of  Mr.  Piatt  and  his  friends  wretchedly  mutilated  the 
reform  programme." 


THE  POPULAE  VETO.  331 

From  the  New  York  World. 
"The  New  York  State  leg-islature  of  1895  was  probabh'  the  most 
incompetent,  vicious  and  useless  that  the  people  were  ever  called 
upon  to  pay  for.  The  session  itself  cost  the"  7,000,000  people  of  the 
State  almost  as  much  as  the  1894  term  of  the  British  Parliament, 
which  made  laws  for  300,000,000  of  its  citizens  and  colonists." 

No.  of  Cost  of 

Legislative  Body.                               laws  maintenance. 

Congress    351  $3,477,834 

British  Parliament   266  468,640 

New   York    Legislature about  700  420,000 

(The  second  session  of  the  53d  Congress,  which  legislated  for  70,- 
000,000  of  people,  cost  nearly  eight  times  as  much  as  the  British 
Parliament,  legislating  for  300,000,000.) 

From  the  Outlook. 

"Distrust  of  legislation  has  been  widened  and  deepened  by  the 

record   of  the  New   York   body   just  adjourned This 

legislature,  more  than  any  other  of  recent  years,  was  elected  on  the 

pledge   of   reform It  was   pledged   to   ballot  reform, 

and  passed  a  blanket  ballot  bill  which  permits  the  ballot  of  the 
bribed  voter  to  be  identified  by  the  purchasers. 

"It  was  pledged  to  a  corrupt  practices  act,  requiring  sworn 
itemized  statements  of  the  receipts  and  expenditures  of  campaign 
committees,  and  ignominiously  rejected  all  measures  designed  to 
fulfill  this  pledge. 

"It  was  pledged  to  public  school  reform,  and  defeated  the  bill 
which  had  the  support  of  all  the  reform  organizations. 

"It  was  above  all  things,  pledged  to  the  complete  overthro^v  of 
the  Tammany  Hall  police  system,  yet  it  passed  the  police  bill  mak- 
ing mandatory  the  Tammany  sjstem  of  a  bipartisan  commission 
and  then  rejected  the  bill  giving  the  honorable  commissioners  ap- 
pointed by  Mayor  Strong  the  power  to  reorganize  the  Tammany 
force." 

PENNSYLVANIA   XEGISLATUKE. 

From  the  Voice  (ProMMtion) . 
"The  Pennsylvania  legislature  expired  to-day  without  a  mourner. 
In  the  early  part  of  the  evening  a  number  of  the  members  were 
visibly  affected  by  liquor,  and  with  howls,  yells  and  whistling  did 
all  in  their  power  to  make  night  hideous.  The  climax  was  reached 
at  midnight.  Then  it  was  that  the  most  disgraceful  scenes  that 
have  ever  occurred  within  the  halls  of  the  State  Capitol  took  place. 

Some  of  the  members   w^ere  not  satisfied   with  what 

they  could  drink,  but  threw  the  liquor  over  each  other,  so  that 
when  they  emerged  from  the  room  they  were  spattered  with  beer 
from  head  to  foot;  others  carried  bottles  with  them;  others  had 
lunch  sent  to  them  at  their  desks,  where  they  entertained  their 
"lady  friends." 


332  THE  OPEN  DOOE  OF  PEOGRESS. 

MASSACHUSETTS    iEGISLATCRE. 

From  Harper's  Weekly. 
"It  has  been  widely  and  most  regretfully  noticed  that  during 
the  last  ten  years  or  so  the  Massachusetts  legislature,  once  a  body 
of  exceptional  purity,  intelligence  and  public  spirit,  has  become 
more  and  more  an  assemblage  of  ordinary  political  hacks,  acces- 
sible to  corrupt  influences." 

MICHIGAN   LEGISLATURE. 

From  the  Detroit  Free  Press. 
"It  would  be  impossible  within  a  reasonable  space  to  record 
the  sins  of  commission  and  omission  committed  by  the  present  leg- 
islature. ......  The  whole  course  of  the  legislature  is  in- 
dicative of  venality  and  of  servility  to  the  machine.  Lobbyists  may 
have  had  less  expensive  work  at  times  past,  but  they  never  found 
it  easier.  Our  misrepresentatives  go  so  far  as  to  say  that  the  people 
.shall  not  voice  their  opinion  upon  a  great  constitutional  question. 
They  are  without  rights  which  the  legislators  are  bound  to  respect. 

It  is  for  the  machine  and  the  corporations We  have 

in  Michigan  the  most  t«rrible  example  yet  furnished  in  a  time  of 
profoiind  peace  of  what  calamities  may  result  from  a  perversion 
of  the  principles  of  representative  government." 

INDIANA    LEGISLATURE. 

From  the  Review-Hei-ald,  Battle  Creek,  Mich,  (religions). 

"The  Indiana  legislature  has  won  for  itself  a  distinction  for  de- 
fiance of  law,  even  in  the  days  of  lawlessness.  A  Republican  legis- 
lature has  struggled  for  supi-emaey  with  a  Democratic  executive, 
and  the  contest  culminated  on  the  night  of  the  11th  in  a  wild  riot. 
Chairs,  revolvers,  books,  fists  and  boots  were  freely  used.  More 
than  a  score  were  severely  injiired 

"The  disgraceful  scenes  that  are  witnessed  in  some  of  our  legis- 
latures are  sufficient  to  cause  a  deep  blush  of  shame  on  the  cheek 
of  every  American." 

ILLINOIS    LEGISLATURE. 

From  the  Chicago  Times-Herald. 
"If  the  honest,  law-abiding  people  of  Illinois  could  have  been 
present  in  Springfield  to  witness  the  extraordinary  closing  hours 
of  the  thirty-ninth  general  assemblj-,  they  would  have  been  led 
seriously  to  doubt  whether  there  exists  in  this  State  a  republican 
form  of  government." 

ARKANSAS   LEGISLATURE. 

From  the  Farmers'  Tribune. 

"Representative  Yancy  disclosed  how  the  Iron  Mountain  Railroad 

had  been  able  to  buy  and  control  the  legislature  of  the  State  at 

$100  per  vote.     There  is  no   doubt   that   enough   legislators   wei-e 

under  pay  to  swing  the  vote  in  the  favor  of  the  railway  corapan3\" 


THE    POPULAR   INITIATIVE.  333 

TEXAS  LEGISLATURE. 

James  Armstrong  in  The  Cominy  Nation. 
"With  the  exception  of  prayer,  excursions  and  the  payment  of 
salaries,  I  know  nothing-  which  that  august  body  has  successfully 
done.  They  have  insisted  on  mileage  while  traveling  on  passes, 
and  laughed  to  scorn  every  proposition  to  curtail  expenses.  Their 
conduct  from  the  first  day  of  their  meeting  has  elicited  nothing 
save  my  sovereign  disgust." 

jNow  i-ead  a  few  more  paragraphs  from  some  of  the  most 
strennoiis  aidvocatee  of  th*  partv  and  policy  that  was  defeated 
at  the  i>olls,  and  miark  their  quiet  acquiescence  in  the  people's 
verdict  against  them. 

Wiliiam  P.  St.  Jolin,  treasurer  of  the  National  Democratic  Committee 

said: 
"The   people   have   declared   themselves   unmistakably.    I    there- 
fore cordially  acquiesce." 

The  Neic  York  Journal  said: 
"The  people  have  chosen  ^lajor  McKinley  instead  of  Mr.  Bryan 
to  be  President.  Nobody  has  a  right  to  object,  for  the  people's 
will  is  sovereign.  It  is  the  high  privilege  of  the  citizens  of  this 
Republic  to  decide  for  themselves  what  is  good  for  them,  and  when 
they  happen  to  be  wrong  they  always  have  the  good  sense  to  suffer 
the  consequences  with  patience,  knowing  that  at  the  ballot  box 
they  can  set  things  straight  again.  The  Journal  regrets  the  de- 
cision of  the  people.  Four  years,  however,  constitute  an  insig- 
nificant space  in  the  life  of  a  nation.  Let  us  hope  that  the  pre- 
dicted confidence  and  prosperity  will  be  forthcoming.  The  Journal 
has  no  inclination  to  quarrel  with  the  jury  of  the  people  because 
of  their  verdict." 

The  Chicago  Evening  Dispatch  said: 
"Wait.  It  is  only  four  j'ears.  The  mills  of  the  gods  grind 
slowly,  but  they  giind  exceeding  small;  wait.  To  dispute  the  will 
of  the  majority  is  revolution,  and  the  Dispatch  believes  in  the 
perpetuity  of  the  nation,  and  concedes  that  what  a  majority  of  the 
people  want  all  of  the  people  can  stand.  Our  faith  is  pinned  to 
American  citizenship." 

The  Wheeling  (W.  Va.)  Register  said: 
"But  we   have  faith  in   the  American   people,   in   their  common 
sense,  and  in  their  rugged  honesty.     Four  years  is  not  long,  and 
Mr.  Br5'an  is  young." 

The  Indianapolis  (Ind.)   Sentinel  said: 
"The  result  will  come  as  a  great  disappointment   to  thousands, 
b\it  the  fundamental  principle  of  oiir  Government  is  acquiescence 


^)34  THE  CITY  FOE  THE  PEOPLE. 

in  the  will  of  the  majority,  and,  therefore,  all  good  citizens  ^vill 
reconcile  themselves  to  making  the  best  of  what  they  may  possibly 
consider  a  bad  matter." 

The  Wilkesbarre  (Pa.)  Leader  said: 
"The  will  of  the  people  is  supreme.     Let  all  cheerfully  bow  to  it 
and  hope  that  the  best  that  could  have  been  done  has  been  accom- 
plished." 

The  Salt  Lake  {Utah)  Herald  said: 
"The  American  people,   as   a  i>eople,   cannot  be  purchased,   tho 
they  may  be  deceived.     Those  who  advocate  free  silver  will  accept 
the  verdict  of  the  American  people  as  that  of  the  sovereign  power 
of  this  country." 

The  Houston   {Tex.)  Post  said: 
"The  voice  of  the  nation  has  decided  against  the  Democracy  and 
in  favor  of  Republicanism,  and  nothing  remains,  of  course,  but  to 
bow  as  gracefully  as  possible  to  the  will  of  the  majority." 

If  men  cau  so  serenely  bow  to  the  defeat  of  tbeir  most 
cherished  hopes  when  the  people  speak,  altho  the  door  is 
closed  for  four  long  years,  how  much  more  calmly  woTild 
they  yield  when  they  knew  that  it  might  not  be  necessary 
to  wait  four  years  but  that  the  decision  could  be  modified 
whenever  the  people  should  consider  it  best  to  do  so? 

ECONOMY. 

15.  Large  economies  will  result  from  Direct  Legislation 
thru  the  stopping  of  jobs,  extravagant  contracts,  corrupt  legis- 
lation of  all  sorts,  cutting  down  the  power  of  bosses  and  rings, 
simplifying  the  law,  reducing  litigation  and  diminishing 
even  the  expenses  of  legitimate  government.  A  single  illus- 
tration under  the  latter  head  will  show  the  economical  ten- 
dencies of  the  Referendum.  In  iN'ew  Jersey  every  year  about 
100  newspapers  receive  about  $1200  apiece  for  printing  the 
acts  of  the  legislature,  a  performance  which  costs  the  publisher 
less  than  one-tenth  of  what  he  receives;  $75  cost  to  each  news- 
paper, over  $1200  cost  to  the  taxpayer.  More  than  $100,000 
out  of  the  pockets  of  the  people  every  year  merely  tO'  enable 
the  politicians  to  keep  in  the  good  graces  of  the  papers,  for 
if  a  paper  misbehaves,  it  is  easy  to  strike  it  from  the  list  of 


DIRECT  LEGISLATION.  335 

those  that  ai^  to  get  the  law-money,  and  not  a  few  papers 
would  die  if  tiiey  did  not  get  this  help — a  coiLsiimniation  de- 
voutly to  be  wished,  since  one^tliird,  or  even  one-tenth  of  the 
papers  in  the  state  could  do  the  whole  work  of  the  press,  and 
do  it  better  and  cheaper  than  it  is  done  now,  with  a  paper  to 
each  1000  inhabitants  in  some  localities,  and  four  of  them 
(the  papers)  to  publish  the  laws  in  a  single  town  of  5000  peo- 
ple. The  shrinkage  of  state  legislation  under  the  Referendum 
and  the  effeetive  auditing  of  appropriations  mil  probably  save 
the  whole  $100,000  and  a  large  part  of  the  actual  present 
cost.  The  state  could  print  for  itself  the  laws  enacted  each 
year  and  send  a  package  to  every  post  office  or  news  delivery, 
where  they  could  be  had  free  upon  application. 

This  is  only  one  little  item,  but  it  shows  the  drift.  The  ruler 
is  apt  to  arrange  thing-s  to  suit  his  own  interest.  When  the 
people  really  make  the  laws,  they  will  arrange  things  for 
their  interests.  They  mil  banish  unnecessary  offices,  reduce 
the  salaries  of  lofty  officials,  abolish  jobbery  and  extravagance, 
get  rid  of  the  iniquitous  spoils  system,  cut  down  the  power  of 
corporate  wealth,  rescind  all  forfeited  franchises  and  take 
control  of  misbehaving  monopolies.  Economy,  justice  and 
purity  will  go  hand  in  hand.  Ring-rule  and  claas-legisla- 
tion  will  die,  and  politicians  mil  lose  their  }x>wer,  because 
they  can  no  longer  command  rewards  for  their  supporters,  no 
jobs,  no  fat  contracts,  no  rich  franchises.  The  cost  of  taking 
the  Referendum  vote  will  be  very  slight;  not  so  much  as  the 
saving  on  many  a  single  contract;  not  a  half  of  the  saving  on 
the  one  item  of  printing  the  laws;  not  a  tenth  of  the  value  of 
many  a  franchise  it  will  keep  from  being  stolen. 

IDENTIFICATION  OF  POWER  WITH  PUBLIC  INTEREST. 

16.  The  Referendum  will  identify  power  with  the  public 
interest.  One  of  the  prime  sources  of  evil  in  our  government 
to-day  is  the  possession  of  vast  political  power  by  private  in- 
terests. Histoiy  shows  that  the  law  is  in  the  main  the  ex- 
pression of  the  interest  of  the  law-maker.  If  the  law  is  to  be 
»n  the  people's  interest,  it  must  be  their  act;  the  enacting  and 


336         GOVERNMENT  BV  AND  FOR  THE  PEOPLE, 

approving  powei"  'must  be  in  the  people.  Power  is  used  in  tlie 
interest  of  its  possessor.  If  the  power  of  govemmemt  is  to 
lie  used  in  the  interest  of  the  i>eople,  they  must  liave  contin- 
uous and  effective  control  of  the  government. 

Grovemment  should  be  so  arranged  that  interest  and  power 
mil  coincide  with  justice  and  the  public  good.  This  can  only 
l)e  the  case  when  the  real  control  is  in  the  whole  body  of  citi- 
zens of  full  age  and  discretion  and  good  character,  foa-  the  in- 
terest of  a  part  is  not  identical  with  the  interest  of  the  whole, 
and  so  far  as  power  is  jxtssessod  by  a  part,  its  exercise  may  de- 
viate from  justice  and  tlie  public  good. 

THE    WORKINGMAn's    ISSUE. 

17.  TJw  Referendum,  icill  give  Labor  its  true  weight. 
Labor's  interest  in  the  Referendum  is  measureless;  it  is  par 
exeellenee  the  workingman's  issue.  The  present  delegate 
system  places  Labor  at  tremendous  disadvantage  as  compared 
with  Capital.  Nearly  all  the  delegates  are  wealthy  or  sym- 
pathize mth  the  wealthy,  or  are  under  their  influence.  Labor 
cannot  expect  a  great  deal  from  legislators;  and  the  weapon 
it  has  largely  relied  upon,  the  organized  strike,  is  being  alx>l- 
ished  by  injunction.  Not  ^vithout  reason,  for  it  is  certainly 
against  the  public  interest  to  allow  a  big  corporation  and  its 
employees  to  settle  their  disagreements  by  private  Avar  in  the 
heart  of  a  great  city,  to  the  vast  disturbance  of  business  and 
perhaps  the  destruction  of  life  and  property — just  as  muc?i 
against  the  public  interest  as  it  would  be  to  alloAv  two  individ- 
uals to  settle  a  dispute  by  conflict  in  the  public  streets.  Xevea*- 
theless,  Labor  is  coming  to  be  in  a  very  tight  place  without  the 
strike  and  without  effective  representation  in  the  halls  of  legis- 
lation. What  is  the  remedy?  Courts  of  compulsory  arbitra- 
tion would  do  some  good,  but  the  fundamental  constitutional 
cure  is  Direct  Legislation. 

Labor  unions  recognize  quite  generally  the  importance  of 
Direct  Legislation  to  them.  As  early  as  1891  ten  of  the  larg- 
est national  and  international  trades  unions  (with  a  member- 
ship close  to  200,000)  were  using  Direct  Legislation.     The 


THE   INITIATIVE    AND   EEFEKENDUM.  337 

same  year  Grand  Master  Workman  Powderlj  recommended 
the  adoption  of  the  Referendum  in  political  government. 
I'rom  1892  Direct  Legislation  was  the  only  political  demand 
of  the  American  Federation  of  Labor  until  1894,  when  others 
were  added.  It  has  been  repeatedly  and  emphatically  indorsed 
by  this  powerful  organization,  and  its  president,  Samuel  Gom- 
pers,  is  a  firm  believer  in  the  movement.  The  Farmers'  A I 
liance,  also,  as  we  have  said,  strongly  advocates  the  Referen- 
dum. For  two  or  three  years  its  Supreme  Council  passed  res- 
olutions favoring  the  discussion  of  Direct  Legislation,  and 
recently  an  emphatic  demand  for  it  has  been  inserted  in  their 
platform. 

Any  one  who  will  examine  the  composition  of  councils  and 
boards  of  aldermen  in  our  large  cities,  or  of  our  legislatures 
and  congresses,  will  realize  how  small  a  chance  there  is  that 
our  present  law-maiers  will  do  full  justice  to  labor.  The  fol- 
lomng  facts  illustrate  the  situation : 

53d  Congress. 

Senate.  House. 

64  lawyers.  245  lawyers. 

10  manufs.  or  merchants.  14  bankers. 

6  bankers.  21  manufs.  or  merchants. 

1  doctor.  5  doctors. 

1  farmer.  8  educators. 

4  miscellaneous.  25  farmers. 

28  miscellaneous. 

Over  TO  per  cent,  lawyers  and  nearly  all  the  rest  belong  to 
the  "upper"  classes.  "What  chance  has  Labor  with  such  an 
assembly  ? 

There  are  some  farmers,  physicians,  educators,  etc.,  who 
may  perhaps  be  heard  if  the  speaker  is  willing.  But  the 
farmers  are  not,  as  a  rule,  the  sort  of  men  who  hold  the  plow 
themselves.  They  are  farmers  because  they  own  farms.  They 
hire  non-owners  to  do  the  work.  Their  financial  interests  are 
not  with  labor. 

Examine  the  present  congress  (55th): 

22 


338 


THE  END  OF   COEEUPT   LEGISLATION. 


Senate. 


64  lawyers. 

1  brewer. 

11  public  officials 

2  journalists. 

(very  likely  lawyers  also). 

2  newspaper  proprietors. 

1  railroad  president. 

1  literateur. 

1  president  of  express  co. 

1  planter. 

1  capitalist. 

1  planter  and  journalist. 

1  miner. 

4  farmers. 

2  manufacturers. 

1  lawyer  and  fanner. 

6  merchants. 

1  retired. 

Over  60  per  cent,  are  lawyers,  and  nearly  all  the  rest  are 
members  of  the  professional  and  capitalistic  classes.  The  Sen- 
ate has  been  called  a  millionaire  club,  and  it  is  a  fact  that 
almost  every  member  is  wealthy,  or  so  related  in  sympathy 
and  interest  to  the  wealthy  as  to  make  it  very  unlikely  that 
he  would  vote  for  anything  that  would  put  much  check  on 
the  growth  of  great  fortunes. 


210  lawyers. 
17  public  officials. 

11  manufacturers. 

12  merchants. 

3  "real  estate." 
3  lumbermen. 
1  coal  dealer. 
10  journalists. 
7  editors. 
1  printer. 
1  laboring  man. 


The  House. 

8  bankers. 
3  physicians. 
1  pharmacist. 

1  chemist. 

2  "insurance." 

3  planters. 
20  farmers. 

1  stock  raiser. 
1  operator. 
1  "machinery." 
3  retired. 
20  not  given. 


Over  60  per  cent,  lawyers  again — the  president  and  60  per 
cent  of  both  houses  are  lawyers,  and  is  it  not  the  very  instinct 
of  a  lawyer  to  follow  the  interests  of  his  wealthiest  clients?  And 
who  are  those  clients  but  the  great  monopolies  and  trusts? 
Is  it  any  wonder  that  sugar  has  many  friends  at  Washington, 
and  can  get.  what  it  wants  in  the  tariff?    Is  it  any  wonder  that 


THE  POPULAR  VETO.  339 

all  the  efforta  of  the  people  to  secure  a  postal  telegraph  have 
been  abortive?  Is  it  any  wonder  that  the  express  companies 
have  been  able  to  prevent  the  establishment  of  a  parcels  post, 
or  that  the  government  pays  the  railroads  for  transporting  the 
mails  eight  times  the  rates  paid  by  the  express  companies  for 
the  transportation  of  expr^s  packages? 

The  spoils  of  office  under  the  absolute  delegate  system  have 
created  conditions  of  nomination  and  election  which  naturally 
produce  class  government.  To  be  a  sucessful  candidate  re- 
quires, in  general,  time,  money,  address,  a  wide  acquaintance 
and  a  knowledge  of  the  machinery  of  politics  and  law.  A 
workingman  or  farmer  or  business  man  of  small  affairs  is  not 
very  apt  to  be  a  candidate  for  any  influential  office,  and  if  he 
ia  a  candidate  his  chances  of  election  are  small.  He  is  too 
busy  to  do  the  needful  buttonholing;  he  has  no  money  with 
which  to  convince  the  "boys"  that  he  is  a  good  fellow,  fit  for 
office;  he  has  no  acquaintance  with  leading  men,  and  he  lacks 
the  knowledge  of  political  tactics  which  is  so  useful  in  win- 
ning elections,  as  well  as  that  really  important  understand- 
ing of  government  and  social  affairs  which  is  rightiy  regarded 
as  a  qualification  for  public  preferment.  Lawyers,  bankers, 
brokers  and  brewers,  leading  merchants,  manufacturers,  jour- 
nalists, corporation  managers,  professional  politicians  and 
demagogues — such  are  the  men  who  carry  elections  and  fill 
the  offices,  and  these  are  not  the  men  most  likely  to  be  in  real 
sympathy  with  the  great  mass  of  the  people,  or  to  have  inter- 
ests identical  with  theirs,  or  to  be  capable  of  truly  represent- 
ing them;  they  are  more  likely  to  represent  the  great  trusts 
and  corporations  whose  legislative  and  administrative  interests 
are,  to  a  large  extent,  antagonistic  to  the  public  interest.  If 
the  mass  of  the  people  were  really  represented,  the  tide  of  af- 
fairs would  be  turned  from  the  progressive  congestion  of 
wealth  toward  the  progressive  diffusion  of  wealth. 

In  illustration  of  the  sort  of  chemical  composition  that  is 
possible  in  a  state  legislature.  I  quote  from  a  Hazleton  (Pa.) 
paper  of  last  year  (1897): 

"In  the  next  Pennsylvania  Legislature  will  be  found  one  gambler 
one  base  ball  umpire,  one  preacher,  eight  men  who  declare  they 


340  THE  OPEN  DOOR  OF  PROGRESS. 

axe  'gentlemen,'  nineteen  without  occupations,  twenty-seven  law- 
yers and  one  pugilist.  Of  the  members,  three  were  convicted  of 
larceny,  one  was  tried  for  murder  and  acquitted,  three  have  been 
in  insane  asylums,  while  eight  have  been  at  Keeley  cures  and  four 
are  divorced." 

THE  people's  issue. 

18.  Not  the  producing  classes  alone,  hut  every  other  class 
in  the  community  will  he  benefited  by  the  Referendum.  It 
must  be  clear  by  this  time  that  all  who  wish  justice  and  good 
govermnent  will  be  benefited  by  Direct  Legislation,  and  it  is 
equally  true  that  even  the  bosses  and  tricksters  will  receive  a 
priceless  boon  by  the  removal  of  the  temptations  that  help  to 
make  them  evil  men,  and  the  establishment  of  conditions  tend- 
ing to  lift  them  to  a  nobler  plane  of  life.  Under  the  Refer- 
endum, those  who  desire  political  power  must  become  true- 
hearted  orators  and  public-spirited  philosophers  instead  of  ac- 
complished wire-pullers. 

The  Referendum  is  in  no  true  sense  either  a  class-measure 
or  a  party-measure.  The  latter  point  has  already  been  brought 
out  by  our  review  of  the  persons  and  platforms  that  favor  Di- 
rect Legislation,  and  by  the  record  of  actual  referendum 
votes,  showing  how  independent  of  party  lines  the  voting 
usually  is.  A  single  case  may  serve  to  bring  the  matter 
strongly  to  mind.  In  Nebraska,  in  1896,  the  Republicans 
submitted  twelve  amendments  to  the  people  and  were  de- 
feated by  the  Populists  at  the  polls,  but  the  amendments  re- 
ceived majorities  ranging  from  5-1  to  70  per  cent,  of  the  votes 
cast,  while  the  Populist  majorities  on  the  eleven  state  officers 
elected  and  on  the  Presidential  electors  ranged  from  a  plur- 
ality of  50  per  cent,  to  a  majority  of  54  per  cent. 

A    CORROLLARY    FROM    ESTABLISHED    LeGAL    PRINCIPLES. 
SIMPLY   AN   APPLICATION   OF  THE   LAW   OF  AGENCY. 

19.  Direct  Legislation  is  simply  an  application  of  the 
fundamental  principles  of  Agency  recognized  in  every  court 
of  justice  in  the  civilized  world;  viz:  That  an  agent  must 
hold  himself  at  all  times  subject  to  the  command  and  approval 


THE   POPULAR  INITIATIVE. 


341 


of  his  principal.  If  yon  employ  an  agent  to  manage  your 
business,  lie  expects  to  do  as  you  say  in  all  things.  He  will 
advise  you,  but  if  you  are  not  convinced  he  must  do  your  way 
and  not  his;  and  if  he  is  not  willing  to  do  your  way,  he  resigns, 
or  you  discharge  him.  He  may  plan,  but  you  have  the  power 
of  instant  veto,  and  you  do  not  have  to  wait  till  the  end  of 
the  year.  If  you  did,  you  might  find  your  property  mort^ 
gaged  or  sold  or  given  away  beyond  recall. 

Men  often  speak  of  their  theories  as  tho  they  were  facts. 
Because  of  our  theories  of  what  government  ought  to  be  and 
is  intended  to  be,  we  have  fallen  into  the  habit  of  calling 
our  representatives  and  misrepresentatives  the  'agents"  of  the 
people;  but  it  is  not  true.  An  agent  may  be  instructed  by 
his  principal  at  any  time,  and  he  is  bound  to  obey;  he  must 
submit  his  plans  in  respect  to  the  principal's  business  to  the 
principal  whenever  requested  to  do  so,  and  the  principal  may 
reject  them  or  amend  them  if  they  do  not  suit  him;  the  agent's 
power  may  be  revoked  whenever  he  misconducts  himself;  and 
in  even.'  respect  he  is  subject  to  the  will  of  the  principal;  an 
instrument  to  carry  it  into  execution,  and  not  a  person  to  set  up 
his  wi^^Vt.'  j^-^position  to  the  pri^^^^^^'s  and  override  or  disre- 
gard the  principal's  wishes  in  his  owni  affairs — that  sort  of  a 
person  is  a  master,  not  an  agent. 

To  one  who  understands  the  nature  of  agency,  and  knows 
that  an  agent  is  simply  an  instrument  in  the  hand  of  the  prin- 
cipal to  execute  his  purposes,  it  sounds  very  odd  to  call  city 
councilmen  and  state  legislators  "agents."  They  ought  to  be, 
but  they  are  not.  They  have  some  of  the  symptoms,  but  in 
other  respects  they  are  found  to  be  a  very  different  sort  of 
animal.  Queer  agents  who  can  sell  or  give  away  my  prop- 
erty against  my  wish  and  protest;  queer  agents  who  can  re- 
fuse to  manage  my  business  in  the  way  I  tell  them  to,  and 
who  may  violate  my  orders  and  disregard  my  instructions,  and 
still  be  safe  from  discharge  till  the  term  for  which  I  em- 
ployed them  to  act  for  me  has  expired.  You  engage  an 
architect  to  draw  plans  for  your  house,  but  you  expect  to 
have  the  plans  submitted  to  you  before  your  money  is  spent 
in  building.    Legislators  are  not  agents,  but  masters;  and  the 


342  THE  CITY  FOE  THE  PEOPLE. 

people  do  not,  for  tlie  most  part,  govern  themselves,  but 
merely  select  the  pereons  who  are  to  govern  them.  These 
legislative  masters  have  many  interests  in  common  with  the 
rest  of  the  people,  and  not  infrequently  wish  to  be  re-elected; 
eo  they  act  to  a  considerable  extent  as  real  agents  would.  But 
they  are  not  real  agents,  for  they  are  not  houtid  to  act  for  the 
principal's  interest  or  according  to  his  instructions,  and  every 
now  and  then,  when  their  interests  are  strongly  opposed  to 
the  people's,  and  they  think  they  can  act  in  such  a  way  as 
not  to  arouse  public  indignation,  or  they  have  a  political  ma- 
chine at  their  backs  assuring  re-election  whatever  they  do, 
or  the  interest  involved  seems  more  important  to  them  than 
the  chance  of  re^^lection^ — then  they  give  away  franchises, 
lease  city  gas  works,  make  bad  contracts,  pass  laws  for  their 
private  benefit,  and  act  in  public  affairs  in  many  a  way  they 
would  never  dream  of  acting  if  the  business  in  their  charge 
had  been  intrusted  to  them  by  an  individual  or  company  em- 
ploying them  as  agents  subject  to  the  principal's  supervision, 
instruction,  veto  and  discharge  according  to  the  universally 
recognized  principles  of  the  law  of  agency.  A  man  who  can 
give  away  my  property«fean-^nst  my  protest  an»«';':^^Mut  re- 
dress, and  can  make  laws  that  I  have  to  oibey  tor  a  year  or 
two  years  or  four  years,  till  he  goes  out  of  office,  is  not  my 
agent,  but  my  master  for  the  term.^ 

Our  legislators  and  officials  will  never  be  really  the  people's 
agents,  the  people's  will  will  never  be  the  actually  and  contin- 
uously governing  will,  until  the  people  claim  the  principal's 
rights  of  instruction  and  veto,  revocation  and  discharge. 

EXPERIENCE. 

20.  Experience  speaks  strongly  for  the  Referendum,  not 
only  from  its  successful  use  in  the  United  States,  but  also  from 

» Not  only  the  principles  applicable  to  agents  strictly  so  called,  the  class 
to  which  legislators  ought  to  belong,  but  also  the  laws  and  usages  of  dealings 
with  servants,  contractors,  etc.,  point  to  the  Referendum  Idea.  If  you  have 
a  cook  and  she  makes  a  broth  you  don't  like,  you  do  not  have  to  swallow  It, 
and  you  may  discharge  the  cook  if  she  won't  make  things  right:  but  legisla- 
tive soups  you  have  to  take,  no  matter  how  unpleasant,  and  you  are  com- 
pelled to  wait  one  year,  two  years  or  four  years  to  get  rid  of  the  rascally 
cooks.  If  your  tailor  makes  a  suit  of  clothes  that  does  not  fit,  you  do  not 
nave  to  wear  It,  nor  pay  the  tailor,  either,  unless  he  makes  It  the  way  you 
want  It.  But  with  the  making  of  law  you  do  not  exhibit  so  much  sense; 
you  have  fixed  things  so  that  you  arc  obliged  to  wear  the  misfit  and  pay 
the  tailor  just  the  same  as  if  it  were  a  fit 


DIRECT  LEGISLATION. 


343 


its  use  in  England  and  Canada,  and  most  eloquently  of  all 
from  the  splendid  results  of  its  complete  adoption  in  Switzer- 
land. 

In  Canada  the  Referendum  is  often  used  to  ascertain  public 
opinion  on  important  measures,  and  has  done  some  excellem 
work  in  the  same  way  as  in  our  states  and  cities  when  used 
voluntarily  by  the  legislatures  or  councils. 

In  England  the  Referendum  principle  is  very  effectively 
applied.  Every  "appeal  to  the  people"  after  each  dissolution 
of  parliament  is  practically  a  Referendum.  Parties  go  to  the 
people,  not  with  vague  generalities  muddled  in  a  heap  of 
promises  which  the  promisors  never  dream  any  one  would 
be  so  discourteous  as  to  ask  them  to  fulfil,  but  with  a  distinct 
course  of  legislation  clearly  marked  out,  a  definite  and  prac- 
tical measure  reduced  to  the  very  terms  it  is  proposed  to  enact 
into  law,  an  actual  bill  which  the  people  sit  in  judgment  upon, 
hear  the  advocates  for  and  against  and  reject  or  approve,  as 
they  see  fit.  England  is  slow  in  some  things,  but  the  mother 
can  teach  the  daughter  a  few  good  lessons  if  the  young  lady 
will  only  listen  with  her  nose  at  par  or  lower.  When  the  Eng- 
lish make  jp  their  minds,  and  elect  a  new  parliament  to  carry 
out  a  reform,  the  members  meet  at  once  and  put  the  will  of 
the  people  into  action.  The  old  parliament  is  dead,  and  the 
new  one  begins  to  move  as  soon  as  the  victory  at  the  polls  is 
assured.  But  with  us  it  takes  six  months  or  a  year  for  the 
new  Congress  to  get  hold  of  the  reins,  and  meanwhile  the  old- 
boys,  whom  the  people  have  repudiated,  continue  to  drive  to 
destruction  or  anywhere  else  they  please. 

It  is  to  S\vitzei]and,  however,  that  we  must  turn  for  the 
fullest  development  of  the  referendum.  Prof.  Louis  Waurin, 
of  the  University  of  Geneva,  says:-^ 

"In  the  middle  of  this  century  the  aristocratic  regime  in  Switz- 
erland was  succeeded  by  that  of  representative  democracy.  The 
pure  representative  system,  however,  was  not  destined  to  last  long. 
The  people  soon  became  aware  that  in  the  latter  regime  the  coun- 
try was  overridden  by  political  'coteries,'  prone  to  sacrifice  the 
general  good  to  party  or  personal  interests,  and  thus  was  brought 
about  the  development  of  direct  democracy.  Then  appeared  two 
institutions:  The  Eeferendum  and  the  right  of  popular  Initiative, 
to  which  has  of  late  been  added,  as  a  necessary  complement,  pro- 
portional representation." 


Progressive  Review,  Lond  n.  July,  1897. 


344        GOVERNMENT  BY  AND  FOR  THE  PEOPLE. 

The  evolution  and  effects  of  Direct  Legislation  in  Switzer- 
land are  so  important  that  a  knowledge  of  its  history  there 
seems  almost  essential  to  anything  like  a  thoro  understanding 
of  our  subject.  The  following  resume^  will  give  the  reader 
the  principal  points: 

Fifty  years  ag^  Switzerland  was  more  under  the  heels  of  class 
rule  than  we  are  to-day;  political  turmoil,  rioting-,  civil  war,  mo- 
nopoly, aristocracy  and  oppression — that  was  the  history  of  a 
large  portion  of  the  Swiss  until  within  a  few  decades.  To-day  the 
country  is  the  freest  and  most  peaceful  in  the  world.  What  has 
wroug-ht  the  change?  Simply  Union  and  the  Referendum — Union 
for  strength,  the  Eeferendum  for  justice.  Union  to  stop  war  and 
riot — the  Eeferendum  to  overcome  monopoly,  aristocracy  and  op- 
pression. A  solid  confederation  of  the  twenty-two  cantons  or  states, 
with  a  good  constitution,  was  founded  in  1848.  Peace  followed, 
but  the  railroads,  politicians,  aristocrats  and  monopolists  continued 
to  plunder  the  people.  In  1858  a  heavy  subsidy  was  granted  a 
railroad  by  the  legislature  of  Neuchatel.  This  opened  the  eyes  of 
the  Switzers  to  the  "beauties"  of  the  representative  system.  They 
began  to  cast  about  for  a  remedy.  Some  of  the  ablest  citizens  had 
for  years  been  calling  attention  to  the  value  of  the  Referendum 
(which  was  practiced  in  a  tew  of  the  small  forest  cantons),  urging 
the  extension  of  the  method  to  other  states  and  to  the  Union. 
The  people  saw  that  it  was  of  no  use  to  put  faith  in  parties  strug- 
gling for  public  office,  or  to  continue  trying  to  guess  which  candi- 
dates might  withstand  the  corruptions  of  power,  and  so  they  de- 
cided to  trust  themselves.  In  1863  and  a  few  years  following,  six 
of  the  leading  cantons  adopted  the  Initiative  and  Referendunti,  and 
to-day  Direct  Legislation  is  practiced  in  all  of  Switzerland's  cities, 
most  of  its  communes,  in  21  out  of  the  22  cantons,  and  in  the  Fed- 
eral Government.  Fourteen  of  the  cantons  have  the  obligatory  Ref- 
erendum, and  seven  the  optional.  The  Confederation  adopted  the 
Referendum  in  1874.  The  Initiative  is  in  use  in  17  cantons,  and 
the  Federation  adopted  it  in  1891.  The  Referendum  clause  of  the 
Federal  Constitution  reads  as  follows: 

"Federal  laws  as.  well  as  federal  resolutions  which  are  binding 
upon  all,  and  which  are  not  of  such  a  nature  that  they  must  be  de- 
spatched immediately,  shall  be  laid  before  the  people  for  accept- 
ance or  rejection  when  this  is  demanded  by  30,000  Swiss  voters 
or  by  eight  cantons." 

The  amendment  of  1891  provides  for  the  Initiative  "when  50,000 
voters  demand  the  enactment,  abolition  or  alteration  of  special 
articles  of  the  constitution."  As  constitutional  lines  are  very  loosely 
drawn  in  Switzerland,  the  people  will  be  able  to  initiate  almost 
any  measure  they  choose.     Let  us  look  at  the  results.     Mr.  W.  D. 


*  A  condensation  for  the  most  part  from  the  writings  of  Mr.  Sullivan, 
Mr.  McCrackan,  Karl  Burkli,  Sir  Francis  Adams,  and  Hon.  Boyd  Winchester, 
ex-U.  S.  Minister  to  Switzerland. 


THE    INITIATIVE    AND    REFERENDUM.  345 

McCrackan  and  Mr.  J.  W.  Sullivan  have  made  exhaustive  studies  of 
Swiss  affairs,  and  to  them  I  owe  most  of  the  facts  I  give  about 
the  Referendum  there.  Mr.  Sullivan  has  the  story  of  Direct  Legis- 
lation in  writing  from  Herr  Carl  Burkli,  of  Zurich,  known  as  the 
"Father  of  the  Keferendum,"  who  saj^s:  "The  masses  of  the  citi- 
zens of  Switzerland  found  it  necessary  to  revolt  against  their  plu- 
tocracy and  the  corrupt  politicians  who  were  exploiting  the  coun- 
try  thru   the   representative   system The   plutocratic 

government  and  the  Grand  Council  of  Zurich,  which  had  connived 
with  the  private  banks  and  railroads,  were  pulled  down  in  one 
great  voting  swoop.  The  people  had  grown  tired  of  being  be- 
headed by  the  office  holders  after  every  election.  And  politicians 
and  privileged  classes  have  ever  since  been  going  down  before 
these  instruments  in  the  hands  of  the  people." 

The  Referendum  has  been  carried  most  nearly  to  perfection  in 
Berne,  the  great  canton  of  half  a  million  people,  and  in  Zurich, 
with  its  340,000  inhabitants.  The  legislature  of  Zurich  consists  of 
a  single  house  of  300  members.  It  meets  two  or  three  times  a  year 
for  a  two-weeks'  session.  It  cannot  grant  a  privilege  to  a  corpora- 
tion, nor  create  an  office,  nor  grant  a  contract.  Every  enactment 
and  every  appropriation  above  the  ordinarj-  limited  sums  for  pur- 
poses specified  in  the  constitution,  must  go  to  the  polls.  And  the 
consequences — let  me  quote  Mr.  Sullivan  verbatim,  so  that  there 
may  be  no  mistake:  "The  Zurich  legislature  knows  nothing  of 
bribery.  It  never  sees  a  lobbjist.  There  are  no  vestiges  remain- 
ing of  the  public  extravagance,  the  confusion  of  laws,  the  parti- 
san feeling,  the  personal  campaigns,  characteristic  of  representa- 
tive governments When   men   of   Ziirich,   now   but 

middle  aged,  w^ere  young,  its  legislature  practiced  vices  similar  to 
those  of  American  legislatures;  the  cantons  supported  many 
idling  functionaries,   and   the  citizens  were   ordinarily  but  voting 

machines,  registering  the  will  of  the  political  bosses 

To-day  there  is  not  a  sinecure  public  office  in  Zurich;  the  popular 
vote  has  cut  down  the  number  of  officials  to  the  minimum,  and 
their  pay  also There  are  no  officials  with  high  sala- 
ries  There    is    no    one-man    power    in    Switzerland. 

Xo     machine    politician    lives     by     spoils 

The  referendum  has  proved  destructive  to  class  law  and  class 
privilege."  In  other  words,  Switzerland  has  rid  the  body  politic 
of  its  vermin — it  has  taken  politics  out  of  the  slums  and  civilized  it. 
Direct  legislation  has  destroyed  the  power  of  legislators  to  legis- 
late for  personal  ends,  and  so  has  punctured  the  heart  of  evil  in 
legislation. 

One  of  the  most  valuable  results  has  been  the  effect  on  the  press. 
The  papers  no  longer  deal  in  spite,  prejudice,  sensationalism  and 
slander,  but  aim  at  quiet  discussion  and  solid  argument.  Says 
Mr.  Sullivan:  "The  advance  of  the  Swiss  press  in  power,  in  dignity, 
in  public  helpfulness  since  the  day  Of  Direct  Legislation  in  that 
country  has  been  one  of  the  most  remarkable  facts  connected  with 
the  reform."     I  wonder  if  it  really  could  give  our  papers  dignity 


346  THE  END  OF  CORRUPT  LEGISLATION. 

and  helpfulness,  and  a  slight  respect  for  the  truth.  Mighty  Magi- 
cian, we  pray  for  thy  speedy  arrival. 

The  progressive  power  of  the  Referendum  has  been  wonderful. 
It  has  enabled  the  Swiss  to  settle  quicklj'  and  easily  many  of  the 
serious  problems  over  which  Americans  have  long  been  puzzling 
their  heads,  and  in  respect  to  which  they  seem  little  nearer  a  solu- 
tion to-day  than  they  were  10  or  15  years  ago.  We  have  spoken 
of  the  elevation  of  the  press,  the  overthrow  of  monopoly,  the  puri- 
fication of  politics  and  the  economies  resulting  therefrom,  and 
from  the  absence  of  senates,  unnecessary  offices,  high  salaries 
and  complex  laws;  but  that  is  not  all.  Thru  the  Eeferendum 
Switzerland  has  secured  public  ownership  of  the  liquor  business, 
the  manufacture  of  distilled  liquors  being  now  a  national  monop- 
oly, has  adopted  state  life  insurance,  a  national  paper  currency,  a 
greatly  improved  factory  act,  a  uniform  marriage  and  divorce  law 
more  liberal  and  sensible  than  any  of  ours,  established  local  op- 
tion in  capital  punishment,  declared  that  vaccination  shall  not 
be  compulsory,  that  religion  shall  not  be  entirely  swept  out  of  the 
schools,  and  that  her  people  are  not  yet  ready  to  recognize  gov- 
ernmentally  the  right  to  employment  when  linked  with  a  demand 
for  "an  official  status  between  laborers  and  employers,  with  demo- 
cratic organization  of  the  work  in  factories  and  workshops."  [And 
the  Swiss  are  right.  It  would  not  be  just  for  the  public  to  attempt 
such  a  reorganization  until  the  public  or  the  w^orkers  by  purchase, 
or  the  growth  of  co-operation,  have  come  to  oicn  the  shops.  Dem- 
ocratic organization  before  that  would  be  confiscation.]  All  this 
since  1875,  and  still  we  have  not  spoken  of  the  two  most  important 
movements  of  the  referendum  period,  viz.,  improved  taxation  and 
the  nationalization  of  the  means  of  communication — both  the  re- 
sults of  Direct  Legislation. 

Tax  reform  has  proceeded  in  two  directions:  First,  the  reduction 
of  the  aggregate  of  taxation,  rendered  possible  by  the  simplicity, 
purity  and  economy  of  direct  government;  and  second,  the  change 
of  the  incidence  of  taxation  from  poverty  to  wealth.  The  latter 
is  one  of  the  wisest  and  most  significant  movements  of  modern 
times,  and  is  making  its  claims  felt  in  all  advanced  countries.  In 
Switzerland  it  has  been  carried  far  toward  perfection. 

Direct  and  non-transferable  taxes  have  been  substituted  for  in- 
direct and  transferable  taxes,  and  the  direct  taxes  have  been  made 
progressive. 

Indirect  taxes,  or  those  on  commodities  imported,  manufactured, 
sold,  etc.,  are  transferable  from  the  person  first  paying  them,  to 
the  consumer,  who  has  also  to  pay  the  said  person  interest  and 
profits  on  the  capital  he  used  to  settle  the  tax  in  the  first  instance, 
BO  that  the  rich  importer  or  manufacturer  may  actually  make 
money  out  of  the  tax  system  instead  of  really  contributing  any- 
thing out  of  his  own  pocket  to  the  support  of  the  government; 
while  the  people  who  consume  the  commodities  taxed,  not  only 
have  to  pay  all  the  taxes,  but  the  dealers'  profits  on  them  besides. 
The  government  treasury,  after  all,  only  receives  $2  out  of  every 


THE  POPULAR  VETO.  347 

three  the  people  pay  on  account  of  the  tax  system.  If  the  taxes 
are  mostly  on  articles  of  ordinary  use,  the  great  body  of  the  poorer 
people  bear  the  bulk  of  taxation,  and  a  certain  class  of  the  wealthy 
have  no  burden,  but  a  profit  instead.  This  trick  of  indirect  tax- 
ation is  what  the  French  statesman  Turgot  called  "plucking  the 
goose  without  making-  it  cackle."  But  the  Swiss  geese  have 
found  out  the  trick,  and  have  turned  it  into  direct  progressive 
taxation,  or  the  trick  of  plucking  the  goose  where  the  feathers 
are  thickest,  and  where  it  will  hurt  the  least.  In  several  of  the 
more  radical  cantons  the  rich  and  well-to-do  pay  nearly  all  the 
taxes.  In  Zurich  fifty  years  ago  all  taxes  were  indirect;  now  $32 
out  of  every  $S4,  or  over  seven  eighths  of  the  whole,  are  raised 
by  direct  and  progressive  taxation  on  incomes,  inheritances  and 
reaFestate. 

In  the  case  of  incomes,  the  largest  pay  at  a  rate  five  times  as 
heavy  as  the  moderate  ones.  In  the  case  of  property,  the  largest 
fortunes  pay  at  a  rate  tw^ice  as  great  as  the  smallest.  In  the  case 
of  inheritances,  the  tax  has  increased  more  than  six  fold  in  the  last 
thirty  years.  The  larger  the  amount  of  property  and  the  more 
distant  the  relative  the  heavier  the  rate. 

The  poorest  laborer  pays  about  2  per  cent,  of  his  wages  in  taxes, 
being  15  to  30  per  cent,  better  off  than  before  the  present  system 
was  adopted;  the  well-paid  clerk  pays  5  per  cent,  of  his  salary, 
being  10  to  20  per  cent,  better  off;  the  business  man  worth  $50,000 
or  more  pays  10  per  cent,  of  his  profits,  and  rests  about  w^here  he 
was;  while  the  large  capitalist,  w^orth  half  a  million  or  more,  pays 
25  per  cent  of  his  income,  and  so  g-ives  back  to  the  public  a  part 
of  the  excess  that  he  receives  above  what  he  earns.  These  laws 
have  done  a  great  deal  to  aid  the  diffusion  of  wealth  and  check 
the  too  rapid  gro^vth  of  overlarge  fortimes,  and  the  results  are 
Been  in  the  fact  that  while  Switzerland  vras  until  recently  very 
poor,  the  exchanges  of  wealth  per  capita  there  are  greater  to-day 
than  in  any  other  country  of  the  continent.  "It  is  an  extraordinary 
fact,"  says  Mr.  Sullivan,  generalizing  from  Mulhall's  statistics, 
"that  the  three  million  Swiss  consume  as  much  wealth  as  the  fif- 
teen million  Italians."  That  is,  one  Swiss,  on  the  averag-e.  eats, 
drinks,  wears,  travels  and  reads  five  times  as  much  as  his  Italian 
nei2"hbor. 

Not  less  important  is  the  second  great  movement  above  men- 
tioned— the  tendency  of  the  government  toward  the  full  control  of 
monopolies,  shown  in  the  nationalization  of  the  liquor  business, 
a  portion  of  the  forests,  life  insurance  and  the  means  of  communi- 
cation and  transportation. 

As  a  result  of  Direct  Legislation  Switzerland  has  adopted  na- 
tional ownership  of  railways,  and  has  the  best  system  of  Federal 
postofRce,  telegraph,  telephone  and  express  sei^ice  in  existence. 
If  you  receive  money  by  postal  order  the  carrier  puts  the  cash  in 
yoiir  hands.  The  mail  is  delivered  everytchere.  If  you  want  the 
express  you  send  the  order  by  the  carrier.  At  any  post  ofiice  you 
may  subscribe  for  any  Swiss  publication,  or  for  any  of  the  several 


348  '  THE  OPEN  DOOK  OF  PROGRESS. 

thousands  of  the  world's  leading  periodicals.  Letter  postage  in 
Switzerland  is  one  cent  local,  general  two  cents,  book  one  cent  a 
half  pound,  newspaper  average  two-fifths  of  a  cent;  express  mat- 
ter at  corresponding  ^ates.  With  the  cheapest  postage  in  the 
world  the  profits  of  the  system  are  large,  because  the  Swiss  post- 
office  does  not  have  to  pay  the  railroads  monopoly  prices  for  trans- 
portation. 

In  respect  to  the  public  telephone,  the  American  Consul  at  St. 
Gall  reported  officially  May  5,  1892:  "The  S\viss  telephone  service 
is  better  and  the  rates  lower  than  anywhere  else  in  the  world." 

As  to  the  national  ownership  of  railroads  in  Switzerland,  I  refer 
the  reader  to  the  circular  issued  by  the  National  League  for  Pro- 
moting the  Public  Ownership  of  Monopolies,  and  printed  in  Chap- 
ter I  of  this  book,  at  the  close  of  the  section  on  "Public  Sentiment." 
The  wonderful  success  of  the  Swiss  referendum  is  fully  attested 
by  the  Hon.  Boyd  Winchester,  our  former  Minister  to  Switzerland; 
Sir  Francis  O.  Adams,  the  English  Minister  there;  Professor  Vin- 
cent, of  Johns  Hopkins  University;  Mr.  McCrackan,  Mr.  Sullivan, 
Professor  Moses,  Professor  Dicey,  etc.  Rev.  Lyman  Abbott's  paper. 
The  Outlook,  speaking  of  the  strong  words  of  approval  eminent 
observers  have  bestowed  upon  the  Referendum,  says:  "Apparently 
there  is  no  conflict  in  the  testimony."  The  only  exception  I  know 
of  is  Mr.  A.  B.  Hart,  who  seems  to  have  found  some  of  the  people 
in  Switzerland  who  have  lost  power  and  privilege  thru  the  referen- 
dum, and  were,  therefore,  inclined  to  growl  about  the  new  insti-' 
tution.  Mr.  Hart  confesses  that  he  went  to  Switzerland  prejudiced 
against  the  Referendum,  and  it  is  not  surprising  that  he  should 
have  found  the  society  of  ousted  politicians  and  monopolists  so 
congenial  that  he  neglected  to  form  other  acquaintances,  and  filled 
his  letter  to  the  "Post"  with  assertions  that  the  Initiative  "suggests 
bad  measures"  (but  the  legislature  never  does;  no  it  will  not  even 
suggest  such  things);  that  the  Referendum  sometimes  "kills  good 
m.easures"  (but  of  course  the  legislature  never  does) ;  that  the 
"Swiss  voters  do  not  all  come  out"  (like  the  Americans  do!);  and 
that  "the  Referendum  has  disappointed  its  friends  in  Switzerland." 
This  "powerful"  argument,  quoted  in  substance  from  one  so  well 
prepared  by  foregone  conclusions  to  make  it,  would  almost  lead 
one  to  believe  that  the  famous  ambassadors,  professors  and 
authors  previously  mentioned  had  formed  a  conspiracy  to  deceive 
the  world  about  the  Referendum,  were  it  not  that  Mr.  Hart,  on 
cross-examination,  as  it  were,  corroborates  their  testimony  by 
saying:  "Switzerland  is  an  atoll  in  the  surging  ocean  of  European 
politics.  Here  the  increasing  strain  which  has  come  upon  the  rep- 
resentative institutions  of  other  countries  is  hardly  felt.  Here 
the  legislature  is  free  from  party  organization,  the  business  of  the 
country  is  well  and  promptly  done,   the  people  are  content  with 

their  representatives The    process    of    invoking    and 

voting  on  a  Referendum  is  simple  and  easilj-  worked 

The   system  undoubtedly   leads   to   public   discussion;    newspapers 
criticise;    addresses   and  counter-addresses    are    issued;     cantonal 


THE   POPULAR   INITIATIVE.  349 

councils  publicly  advise  voters,  and  of  late  the  Federal  Assembly 
sends  out  manifestoes  about  pending  Initiatives."  How  does  this 
talk  about  doing  the  business  promptly  and  well,  and  about  the 
people's  contentment  agree  with  what  Mr.  Hart  said  about  "dis- 
appointment of  the  friends  of  the  Referendum?"  As  to,  this,  one 
of  the  leading  friends  of  the  Referendum  wrote  to  Mr.  Sullivan 
that  it  was  "deeply  rooted  in  the  hearts  of  the  whole  people.  All 
parties  who  formerly  opposed  the  Referendum,  even  the  most 
reactionarj'  and  aristocratic,  have  declared  officially  their  adher- 
ence to  the  Initiative  and  Referendum  as  a  thoroly  good  institu- 
tion." No  one  objects  to  it  now  but  a  few  individuals  who  stood 
in  the  path  of  progress  and  got  hurt  by  the  wheels  of  justice,  and 
who  comfort  themselves  with  ungracious  talk. 

There  were  objections  in  plentiful  measure  during  the  early 
advocacy  of  the  wide  extension  of  the  Referendum,  but  experience 
has  shown  them  all  to  be  fallacious.  Here  are  some  samples:  "It 
would  do  well  enuf  in  the  little  commune  or  the  primitive  forest 
canton,  but  never  would  work  in  the  grand  canton  of  Berne,  much 
less  in  Federal  affairs;  that  was  visionary  in  the  extreme.  It  was 
an  impracticable  thing  any  way,  and  would  keep  the  people  vot- 
ing from  morning  till  night.  Demagogues  would  rule  the  people 
and  pernicious  tyrannical  laws  would  be  passed.  The  people  were 
inexperienced,  short-sighted,  capricious,  imssionate,  and  the  Ref- 
erendum would  prove  the  source  of  great  expense  and  a  flood  of 
hasty,  injudicious,  partisan  legislation." 

As  to  expense,  we  have  seen  that  taxes  are  lower  than  ever  be- 
fore, and  the  government  more  economical.  Jobbery  and  extrava- 
gance are  unknown,  for  the  people  who  pay  hold  the  strings  of 
the  purse,  and  politics,  since  there  is  no  money  in  it  now,  has 
ceased  to  be  a  trade. 

Instead  of  partisan  laws,  it  has  been  proved  that  people  vote 
on  the  merits  of  the  measures  submitted,  the  fate  of  one  proposi- 
tion having  no  effect  on  that  of  another  put  out  by  the  same  or- 
ganization, and  partisanship  is  reduced  to  its  lowest  ebb,  as  even 
Mr.  Hart  admits. 

Instead  of  causing  a  nood  of  hasty  legislation,  the  Referendum 
has  proved  a  drag  on  the  making  of  laws.  In  the  twenty  years 
from  1874  to  1894  the  Swiss  Federal  Ck)ngress  passed  175  laws,  19 
of  which  were  called  to  the  polls  by  a  petition  for  the  referen- 
dum. Eight  amendments  to  the  constitution  were  also  passed 
and  two  more  suggested  by  the  Initiative.  So  that  the  people 
voted  in  twenty  years  on  29  questions,  ten  of  which  were  constitu- 
tional amendments,  which  go  to  the  people  in  our  states  now. 
Sixteen  of  the  laws  and  amendments  were  disapproved  by  the  voir- 
ers  and  thirteen  approved.  Every  one  of  the  questions  received 
remarkably  lengthy  consideration,  and  most  deliberate  and  dis- 
passionate discussion,  the  like  of  which  is  as  yet  unknown  in 
America.  Passing  less  than  a  law  a  year  is  not  much  of  a  "flood" 
of  legislation  from  the  Referendum,  is  it?  Neither  does  the  sug- 
gestion  of  one  law   in   each  two  years   by   the   Federal   Initiative 


350  THE  CITY  JTOR  THE  PEOPLB. 

f>eem  much  like  a  deluge.  In  twenty  years  the  legislature  of 
Boleure  passed  66  laws;  all  went  to  the  people,  the  referendum 
being  obligatory;  51  were  adopted  at  the  polls  and  15  rejected — less 
law-making,  you  see,  on  the  face  of  the  returns,  than  if  there  had 
been  no  referendum.  In  twenty  years  the  legislature  of  Berne 
passed  68  laws;  50  were  approved  at  the  polls  and  18  rejected. 
Berne  has  half  a  million  people.  New  Jersey  a  million  and  a  half. 
Berne,  with  the  referendum,  averages  two  and  a  half  laws  a  year, 
and  New  Jersey  450.  So  that  per  million  of  inhabitants  300  laws 
are  enacted  in  the  United  States  to  Switzerland's  five,  or  60  to  1. 
It  turns  out,  therefore,  that  the  deluge  is  not  with  the  Referendum, 
but  without  it.  The  obligatory  Referendum  makes  the  entire 
citizenship  a  deliberative  body  in  perpetual  session.  It  establishes 
principles  and  avoids  the  flood  of  special  legiglation  that  sweeps 
away  all  sense  of  virtue  from  our  statute  books.  The  mass  of  com- 
plex, useless  and  evil  laws  that  breeds  lawyers,  courts  and  police, 
are  in  Switzerland  not  passed  at  all,  with  a  great  reduction  in  the 
cost  of  litigation  and  police. 

Mr.  McCrackan  says:  "The  Referendum  is  above  all  things  fatal 
to  anything  like  extravagance  in  the  management  of  ptibliq  funds; 
it  discerns  instantly  and  kills  remorselessly  all  manner  of  jobs." 
And  again:  "Nowhere  in  the  world  are  government  places  occupied 
by  men  so  well  fitted  for  the  work  to  be  performed." 

Boyd  Winchester  says  in  his  "Swiss  Republic:" 
"One  in  visiting  the  chambers  of  the  assembly  is  much  imprest 
with  the  smooth  and  quiet  dispatch  of  business.  The  members 
are  not  seated  with  reference  to  their  political  affiliations.  There 
is  no  filibustering,  no  vexatious  points  of  order,  no  drastic  rules  of 
cloture  to  ruffle  the  decorum  of  the  proceedings.    Interruptions  are 

few,     and    angry    personal    bickerings    never     occur 

Leaves  to  print,  or  a  written  speech  memorized  and  passionately 
declaimed  are  unknown.  There  are  none  of  those  extraneous  and 
soliciting  conditions  to  invit«  to  'buncombe'  speeches.  The  debates 
are  more  in  the  nature  of  an  informal  consultation  of  business 
men  about  common  interests.  They  talk  and  vote,  and  there  is 
an  end  to  it.  This  easy,  colloquial  disposition  of  affairs  by  no 
means  implies  any  slip-shod  indifference  or  superficial  method  of 
legislation.  There  is  no  legislative  body  where  important  ques- 
tions are  treated  in  a  more  fundamental  and  critical  manner. 

"The  members  of  the  assembly  practically  enjoy  life  tenure. 
Re-election,  alike  in  the  whole  confederation  and  in  the  single 
canton,  is  the  rule.  Death  and  voluntary  retirement  account  for 
nineteen  out  of  the  twenty-one  new  members  at  the  last  general 
election.  There  are  members  who  have  served  continuously  since 
the  organization  of  the  assembly,  in  1848.  To  some  extent  this  re- 
markable retention  of  members  of  the  assembly  may  be  ascribed 
to  the  fact  that  the  people  feel  that  they  are  masters  thru  the 
power  of  rejecting  all  measures  which  are  put  to  a  popular  vote. 

"The  members  of  the  Federal  Council  can  be  and  are  continually 
re-elected,  notwithstanding  sharp  antagonisms  among  themselves. 


DIRECT  LEGISLATION.  351 

and  it  may  be  between  them  and  a  majority  in  the  assembly.  Thej 
also  continue  to  discharge  their  administrative  duties,  whether 
the  naeasures  submitted  by  them  are  or  are  not  sanctioned  by  the 
voters.  The  Swiss  distinguish  between  men  and  measures.  They 
retain  valued  servants  in  their  employment,  even  tho  they  reject 

their  advice This  sure  tenure  of  service  makes  those 

chosen  look  upon  it  as  the  business  of  their  lives.  Without  this 
permanence,  such  men  as  now  fill  it  could  not  be  induced  to  do  so." 

liead  also  the  following  from  Sir  Francis  Adams: 

"The  Swiss  voter  is  quite  ready  to  vote  again  and  again  for  the 
same  candidates.  He  probably  looks  upon  them  as  good  men  of 
business,  with  long  experience  of  parliamentary  and  Federal  af- 
fairs, and  he  knows  very  well  that  if  measures  are  passed  of  which 
for  some  reason  or  other  he  does  not  approve,  he  and  his  fellows 

can  combine  to  reject  them  at  the  referendum There 

have  been  hitherto  only  two  instances  of  a  member  willing  to 
serve  not  being  re-elected 

"The  debates  are  carried  on  with  much  decorum.  There  is  sel- 
dom a  noisy  sitting,  even  when  the  most  important  subjects  are 
discussed.  Interruptions  are  few,  and  scenes  such  as  unhappily 
have  of  late  been  painfully  frequent  in  our  House  of  Commons  do 
not  exist.  The  sittings  strike  the  spectator  as  being  those  of  men 
of  business,  tho  the  members  are  bj'  no  means  devoid  of  eloquence." 

And  this  fi-om  Karl  Burkli,  a  prominent  citizen  of  Zurich,  Switz- 
erland 

"The  smooth  working  of  our  Federal,  cantonal  and  municipal 
referenduna  is,  as  a  matter  of  fact,  a  truth  generally  acknowledged 
thruout  Switzerland.  The  initiative  and  referendum  are  now  deeply 

rooted  in  the  hearts  of  the  Swiss  people Proportional 

representation  is  going  ahead  in  half  a  dozen  cantons  (Berne,  Basle, 
Zurich,  Lucerne,  St.  Gall)  just  now,  and  six  cantons  (Tessin,  Neu- 
chatel,  Geneva,  Zug,  Soleure,  Fribourg)  and  the  Federal  city  of 
Berne  have  already  proportional  representation. 

"Our  city  or  municipal  referendum  goes  likewise  very  well.  So, 
the  town  citizens  of  Berne  voted  this  year  (April),  per  referendum, 
for  instituting  proportional  representation,  and  last  year  the  town 
citizens  of  Zurich  (now  the  largest  city  in  Switzerland,  about  130,- 
000  to  150,000  inhabitants)  voted  for  the  appropriation  and  manage- 
ment by  the  city  of  the  tramways  (street  car  lines). 

"All  these  divers  votings — Federal,  cantonal,  municipal — went  on 
without  riot,  corruption,  disturbance  or  hindrance  whatever, 
altho  with  great  agitation.  So  all  is  well  with  us,  and  you  may 
authoritatively  say  that  there  is  no  agitation  for  its  repeal  or 
difficulty  in  its  working,  whether  in  federation  or  in  the  cantons 
or  in  the  cities,  as  Zurich,  Geneva,  Basle,  Berne,  tho  these  cities 
are  full  of  foreign  elements.  Our  Swiss  political  trinity — initiative, 
referendum  and  proportional  representation — is  not  only  good  and 
holy  for  hardworking  Switzerland,  but  would  be  even  better,  I 
think,  too,  for  the  grand  country  in  North  America." 

Mr.  A.  A.  Brown,  speaking  of  what  the  Swiss  have  done  with  dj- 


352        GOVERNMENT  BY  AND  FOE  THE  PEOPLE. 

rect  legislation  says:  "They  have  defeated  monopolies,  improved 
the  method  of  taxation,  reduced  the  rate,  avoided  national  scandals 
grovs'ing  out  of  extravagance;  they  have  husbanded  the  public  do- 
main for  the  benefit  of  their  own  citizenship;  they  have  destroyed 
partisanship  and  established  a  g-overnment  of  the  people;  they  have 
quieted  disturbing  political  elements,  disanned  the  politician,  en- 
throned the  people;  by  vote  of  the  peojjle  they  have  assumed  au- 
thority over  railroads,  express  companies,  telegraphs  and  tele- 
phones, reducing  freight  rates,  express  charges  and  tolls  more  than 
78  per  cent,  below  the  cost  for  like  service  under  private  control." 
(Arena,  Vol.  22,  p.  98.) 

With  suoli  a  record  how  can  we  fail  to  favor  the  Referen- 
dum? Switzerland  has  solved  her  problem,  by  making  an 
intelligent  selecticm  of  the  best  among  many  local  forms  and 
extending  its  application.  Is  there  not  good  reason  to  believe 
that  we  can  solve  many  of  our  problems  in  the  same  way? 

21.  Authority  of  the  highest  character  favo7^s  the  exten- 
sion of  the  Referendum  in  America.  This  point  was  suffi- 
ciently discussed  in  the  first  half  of  this  chapter. 

22.  The  drift  of  public  sentiment  sets  strongly  toward 
the  Referendum.    (See  above.) 

23.  The  trend  of  events,  the  progress  of  civilization,  the 
evolution  of  democracy  and  the  whole  movement  of  modern 
history  is  in  the  direction  of  more' perfect  control  of  the  gov- 
ernment by  the  pcopU,  a  path  icliich  leads  straight  to  the 
fuller  use  of  Direct  Legislation.    (See  above.) 

24.  The  fundamental  principles  of  religion  and  ethics, 
the  law  of  love,  the  Golden  Rule  and  the  brotherhood  of  man 
necessitates  the  Referendum.  Love  and  brotherhood  deny 
me  the  right  and  banish  the  wish  to  assume  more  power  than 
my  fellows,  or  deprive  them  of  equal  participation  in  the  de- 
velopment resulting  from  decision  and  responsibilit3^  Only 
unavoidable  necessity  can  justify  unequal  sovereignty,  and  no 
such  necessity  exists  in  cases  to  which  the  Initiative  and  Ref- 
erendum can  be  applied. 

25.  The  final  and  fundamental  political  argument  for 
Direct  Legislation  is  that  it  is  necessary  to  true  self-gov- 
ernment. It  and  it  only  can  and  will  establish  ]-)nblic  owner- 
ship of  the  government.  It  is  the  only  way  to  ]irove  and 
overcome  misrepresentation  with  due  precision  and  prompt- 


THE    INITIATIVE    AND    KEFEEENDUM. 


353 


ness.  It  is  the  only  practicable  means  of  destroying  the  great 
Lawmaking  Monopoly  which  holds  us  in  its  grip  to-day,  and 
which  is  not  only  a  terrible  evil  in  itself,  but  the  prolific  parent 
and  protector  of  other  monopolies  and  oppressions. 

If  the  control  of  affairs  is  put  in  the  hands  of  a  few  men 
for  life,  without  responsibility  to  the  controlled,  everybody 
recognizes  the  fact  that  the  government  is  an  aristocracy.  If 
the  control  is  put  in  the  hands  of  a  few  for  two  or  three  years 
without  responsibility  to  the  controlled  during  that  time, 
there  is  an  aristocracy  aa  much  as  before.  The  duration  of  a 
government  does  not  fix  its  character,  but  the  nature  of  the 
control;  and  even  if  time  were  of  the  essence  of  the  case, 
many  a  monarch's  reign  has  been  shorter  than  the  terms  of 
our  President  and  Senators.  To  have  a  government  by  the 
people,  the  legislative  agents  must  be  subject  to  the  control 
of  the  people  every  moment.  If  for  one  instant  they  cease  to 
be  subject  to  the  orders  of  the  people,  for  that  instant  they 
cease  to  be  servants  and  become  sovereigns  in  place  of  the 
people. 

It  is  true  that  in  the  early  history  of  America  pure  repre- 
sentative government  produced  good  results.  It  is  perfectly 
possible  that  in  a  rural  community,  where  the  people  are 
nearly  on  a  level,  and  no  strong  class  distinctions  exist,  rep- 
resentative aristocracy  might  take  a  course  quite  close  to  the 
one  in  which  self-government  would  steer  the  ship  of  state. 

But  as  the  simplicity  and  homc^eneity  of  primitive  society 
give  place  to  the  strong  contrasts  of  rich  and  poor,  million- 
aire and  tramp,  Back  Bay  and  slums,  educated  and  ignorant, 
nabobs  and  nobodies — as  the  people  crystalize  into  classes 
under  the  influence  of  selfish  competition,  and  class  interests 
grow  intense,  facing  each  other  in  bitter  antagonism — 'as  or- 
ganizations of  men  are  formed  to  capture  the  government  and 
the  ofiices  for  their  own  private  benefit — the  divergence  be- 
tween the  people's  will  and  the  Arill  of  the  men  who  contrive 
to  get  themselves  elected  under  the  name  of  "representatives" 
grows  larger  and  larger,  until  in  some  of  our  cities  and  states 
scarcely  a  vestige  of  real  representation  remains,  and  the  go"^- 
emment  is  a  despotism. 

23 


364  THE  END   OF   COBEUPT   LEGISLATION. 

It  lias  come  to  be  perfectly  clear  that  representation  does 
not  represent,  and  a  little  consideration  will  show  that  even 
under  the  most  favorable  circumstances,  delegate  law  cannot 
be  relied  on  to  represent  tlie  people's  will.  The  facts  are 
briefly  as  follows 

1.  It  frequently  happens  that  large  masses  of  people  have 
no  representative  at  all  in  the  halls  of  legislation.  In  Minne- 
sota about  44  per  cent,  of  those  voting  (or  101,000  out  of 
236,000)  have  no  ooie  in  Congress  to  represent  them — no  one 
for  whom  they  cast  a  ballot  or  who  went  from  their  state  to 
stand  for  their  principles.^ 

In  Wisconsin  40  per  cent,  and  in  Maryland  46  per  cent,  of 
the  people  have  no  representative  in  Congress.  In  1892,  out 
of  twelve  millions  voting,  five  and  a  half  millions  had  no  rep- 
resentative in  the  national  government,  and  in  1896  again 
nearly  haK  of  those  voting  had  no  one  in  Congress  in  whom 
they  had  expressed  their  confidence  or  whose  selection  as  a 
legislator  they  had  endorsed  with  a  ballot, 

2.  It  is  a  common  thing  for  one  party  to  absorb  far  more 
than  its  fair  share  of  representation.  In  1892  J^ew  Jersey 
cast  171,000  Democratic  votes  and  156,000  Republican  votes. 
The  Democrats  got  six  Congressmen  and  both  Senators,  or 
one  national  representative  to  21,000  voters.  The  Republi- 
cans had  two  Congreesmeni  or  one  national  representative 
to  78,000  voters.  A  little  irregular  strip  in  the  city  of  Cam- 
den, containing  a  population  of  12,725,  constituted  one  legis- 
lative district,  and  the  rest  of  the  city  constituted  another  dis- 
trict, containing  58,311  population;  the  first  contained  the 
democratic  strength  of  Camden,  the  second  was  republican; 
each  district  had  the  same  amount  of  representation  in  the 
legislature.  In  Essex  county,  the  3d  Asseanbly  district  (dem- 
ocratic), contained  a  population  of  11,349,  while  the  11th 
district  (republican)  contained  42,414,  and  the  average  popu- 
lation of  all  the  republican  districts  was  double  the  average 
population  of  the  democratic  districts. 


•  Most  of  tbe  figures  at  hand  relate  to  state  votings  for  national  officers, 
out  the  same  general  conditions  exist  In  local  votings. 


THE  POPULAR  VETO.  365 

Let  us  take  the  present  congress  (the  55th,  elected  in  1896) 
and  tabulate  some  of  the  striking  facts. 


Percent. 

Number  of 

of  voiea 

CoDgressienal 

east. 

DUtrlcM. 

h  5ii,  the  Republicitns  of  .Md. 

carried  erery  one 

of  the  6di8t 

Ri^  "              "              '    Iowa 

"           "         " 

"      11 

58j(  "    Democrats      "  Ga. 

It               n            i« 

"      It 

5i5{  "            "               "  Texas 

"                12 

"      13       ' 

6M  "    Republicaua  "  Mass. 

12 

«      13 

61j( Pa. 

27 

"      30       " 

mi  "             '            ••  N.  Y. 

29 

"      M       •' 

B3i  "            "             "  Ohio 

15 

«      .^, 

aH*  "             •'             "  III. 

17 

"      22        " 

60^   "             "             ••  N.  J. 

"       eTery  one 

8       " 

60j(  "              "              "  Wis. 

"          "         " 

"      10 

These  percentages  are  based  on  the  actual  votes  for  Congress- 
men. The  Republican  or  Democratic  percentage  of  the  vote  for 
Governor  or  other  general  officer  is  very  often  identical  with  the 
same  party's  j>ercentage  in  the  congressional  vote,  but  in  some 
cases  varies  a  little  above  or  below  the  latter.  For  the  54th  Con- 
gress some  of  the  facts  are  even  more  remarkable  than  any  of  those 
in  the  table.  For  example,  the  Republicans  of  Illinois  had  only 
about  51  per  cent,  of  the  general  state  vote  and  53  per  cent,  of 
the  district  vote,  and  yet  they  elected  all  but  one  of  the  22  Con- 
gressmen. And  the  Republicans  of  Wisconsin,  with  51  per  cent. 
of  the  vote  for  Governor,  and  54  per  cent,  of  the  district  vote, 
elected  everj-  one  of  the  10  Congressmen.^ 

In  the  55th  cangreee,  the  Democrats  of  Georgia  and  Texas 
had  both  senators  from  their  respective  states,  and  the  Re- 
publicans had  both  Senators  from  Maine  and  Iowa,  Illinois, 
Massachusetts,  etc. — a,  fact  which  in  connection  with  thooe 
that  precede,  supplies  the  basis  for  some  very  interesting  con- 
clusions, viz.:  That  in  Massachusetts  1  Republican  has  more 
weight  in  national  affairs  than  4  Democrats.  In  Texas,  1 
Democrat  equals  5  Republicans.  In  Illinois,  during  the  54th 
Congress,  a  Republican,  weighed  more  than  15  Democrats. 
In  Georgia  now  a  Republican  weighs  nothing  at  all,  and  in 


^  The  district  system  naturally  tends  to  exclude  a  very  large  proportion 
(often  40  to  45  per  cent.)  of  the  people  from  representation  in  congresses, 
councils,  legislatures,  etc.,  and  in  connection  with  the  gerrymander  or  the 
plurality  rule,  or  both,  it  may  even  exclude  a  majority  of  the  people.  Im- 
agine a  legislative  body  elected  by  40  to  60  per  cent,  of  the  citizens  voting, 
and  estimate  the  representative  quality  of  a  law  passed  by  a  majority  of 
a  quorum  in  such  a  body— it  might  represent  no  more  than  12  to  16  per  cent. 
of  the  voters  If  honestly  passed— not  1  per  cent.,  perhaps,  if  corruptly 
passed.  Corruption  may  attain  any  degree  of  misrepresentation  in  any 
legislative  body  it  is  able  to  control.  What  is  the  representative  quality  of 
a  law  passed  at  midnight  in  the  closing  hours  of  a  session,  with  most  of 
the  legislators  asleep  or  inattentive,  and  nobody  voting  but  the  man  who 
drew  the  bill?  What  is  the  representative  -quality  of  legislation  under  the 
iron  rule  of  a  presiding  officer  who  recognizes  no  one  to  speak  for  a  meas- 
nue  he  wishes  to  exclude?  Representation  is  but  a  shell  without  the 
kernel,  a  nest  from  which  the  bird  has  flown.  The  Referendum  will  put 
life  once  more  into  the  dead  form. 


356  THE  OPEN  DOOR  OF  PROGRESS. 

Maine  and  Iowa,  a  Democrat  weighs  nothing  in  national  leg- 
islation or  deliberation. 

3.  The  various  classes  of  society  are  not  duly  represented 
in  legislative  bodies — not  represented  in  anything  like  the 
proportion  they  actually  bear  to  the  social  total.  We  have 
seen  in  paragi-aph  lY  what  the  composition  of  a  legislative 
body  is  like.  A  few  years  ago  I  examined  the  census  figures 
of  class'  enumeration  and  the  composition  of  Congress,  with 
the  following  results: 

The  lawyers,  with  their  families,  constitute  one-third  of  1 
per  cent,  of  the  people,  yet  they  have  60  per  cent,  of  the  Sen- 
ate and  House,  and  the  President  also — more  than  180  times 
the  representation  that  belongs  to  them.  The  bankers  num- 
ber one-tenth  of  1  per  cent,  of  the  people,  which  entitles  them 
to  one-half  of  one  representative;  but  they  have  ten,  which 
is  twenty  times  their  fair  share.' 

The  farmers  constitute  45  per  cent,  of  the  people,  and 
have  one  Senator  and  thirty-nine  members  of  the  House,  or 
9  per  cent,  instead  of  45  per  cent.,  as  they  should  have^ — one- 
fifth  of  what  belongs  to  them.  The  laboring  people  of  all 
sorts  number  nearly  80  per  cent,  of  our  citizenship.  What 
are  their  representatives?  Where  are  the  Senators  and  Con- 
gressmen who  are  really  workingmen  and  in  full  sympathy 
with  them  and  fit  to  represent  them?  The  bulk  of  the  com- 
munity is  entirely  unrepresented  by  men  of  their  own  class 
and  condition,  who  are  the  only  ones  that  can  thoroly  under- 
stand their  wants  and  wishes. 

4.  Ideas  are  not  correctly  represented.  Voters  in  different 
parties  agree  on  some  things  and  voters  in  the  same  party  dis- 
agree on  some.  The  present  methods  of  voting  in  city  and 
state  elections  afford  no  opportunity,  as  a  rule,  for  registering 
this  agreement  and  disagreement.  There  is  no  definite  repre- 
sentation of  the  opinions  of  the  voters  on  mattei-s  aside  from 
the  main  issue,  and  large  bodies  of  men  advocating  special 
measures  are  entirely  excluded  from  representation  in  the 
halls  of  legislation,  not  being  able  under  the  district  system 


Ais  ti  t  ^  **  Congress  the  bankers  had  20  representatives,  or  more  than 

I   IJ?^,^  ^'^^"  '"•'■  share,  and  the  farmers  had  much  less  than  1/5  of  their 
rightful  representation  In  the  53d  Congress,  and  also  in  the  55th. 


THE   POPULAR  INITIATIVE.  3^)7 

of  representation  to  elect  any  one  at  all  to  stand  for  even 
their  main  idea.^ 

5.  Many  a  question  arises  after  election  during  the  dele- 
gate's term  of  office  which  was  not  considered,  perhaps  was 
not  even  foreseen,  at  the  time  of  his  election.  The  people 
had  no  opportunity  of  expressing  themselves  upon  it  at  the 
polls,  and  the  judgment  of  the  representative  in  the  premises 
may  and  frequently  does  differ  from  that  of  his  constituents. 

6.  Even  where  the  people  have  exprest  themselves  quite 
clearly,  their  views  may  change.  They  may  elect  men 
pledged  to  certain  legislation  and  afterward,  before  the  pledge 
is  executed,  perhaps,  the  people  see  reason  to  change  their 
minds;  but  without  the  Referendum  the  change  cannot,  b^- 
ascertained.  Imagine  a  business  man  telling  his  agent  to-day 
to  buy  certain  lands  or  build  a  house  for  him,  and  to-morrow, 
concluding  he  did  not  want  the  land  or  the  house,  but  denied 
the  privilege  of  revoking  his  order  or  modifying  his  plan! 

•  7.  The  delegate's  self-interest  may  lead  him  to  disregard 
the  will  of  the  people,  even  when  he  knows  perfectly  well 
what  it  is.^     Under  present  conditions  the  delegates  may  give 


*  Proportional  representation  will  remove  the  evils  of  the  district  sys- 
tem. It  would  enable  each  party  or  organized  group  of  voters  to  obtain 
Its  due  share  of  delegates  in  council  and  legislature.  But  classes,  ideas  and 
interests  would  still  be  far  from  having  a  fair  representation.  The  jumble 
of  issues  in  party  platforms  and  the  mixture  of  measures  with  persons 
would  continue  to  make  it  Impossible  for  the  people  to  give  definite  ex- 
pression of  their  thoughts  and  wishes.  The  boss,  the  ring  and  the  machine 
would  still  control  nominations  in  a  large  degree;  the  lobby  would  still  cor- 
rupt the  legislators;  questions  not  considered  at  election  time  would  con- 
tinue to  come  up,  and  legislators  could  not  be  sure  of  judging  as  the  people 
would  judge.  Even  in  Switzerland,  where,  according  to  the  latest  reports, 
eight  cantons  have  proportional  representation  along  with  the  referendum, 
the  legislators  are  not  able  to  judge  correctly  of  the  popular  will,  and  their 
action  is  frequently  reverstd  at  the  polls. 

Proportional  representation  is  good;  it  gives  each  body  of  citizens  a 
chance  to  get  some  of  their  ideas  represented  in  the  deliberations  of  legis- 
lative bodies;  it  helps  to  make  the  legislative  bod.y  a  picture,  on  a  small 
scale,  of  the  chief  groups  in  the  citizen  body;  but  it  leaves  the  legislative 
body  still  subject  to  the  fundamental  defect  of  making  law  by  final  vote 
of  a  body  of  delegates.  The  concentration  of  temptation,  the  divergence  of 
interest  and  thought,  and  the  private  monopoly  of  legislative  power,  with 
all  their  attendant  evils  remain  substantially  as  at  present. 

No  sort  of  representation,  proportionate  or  not,  can  be  relied  on  as  truly 
representative  unless  it  Is  always  under  the  principal's  direction  and  con- 
trol, so  that  departures  from  his  will  may  be  corrected  and  his  views  and 
changes  of  view  be  registered  at  any  moment  he  sees  fit.  The  essential 
thing  is  the  participation  of  the  people  at  will  in  the  making  of  the  laws. 

^  In  a  circular  issued  by  the  South  Dakota  Direct  Legislation  League  I 
find  the  matter  strongly  and  clearly  stated: 

When  the  vote  granting  a  franchise  binds  us  forever,  and  our  represen- 
tative can  get  ?5,000  for  his  vote,  while  we  only  give  him  $300  for  his  year's 
work  (even  if  we  should  re-elect  him),  where  Is  his  responsibility? 

The  state  or  city  Is  our  farm.  At  present  we  give  our  servants  (legisla- 
tors, aldermen)  almost  unlimited  power  over  It— power  to  mar  it;  power  to 


858  THE  CITY  FOK  TffE  PEOPLE. 

away  public  property  or  take  other  action  wliich.  will  bind  the 
unwilling  people  beyond  the  reach  of  revocation.  For  ex- 
ample, the  Ohio  legislature  in  1896  passed  a  law  permitting 
cities  to  give  50  year  franchises  to  street  railway  companies. 
It  is  said  that  the  friends  of  tlie  people  as  against  the  corpora- 
tioaia  did  not  know  of  the  bill  till  a  few  days  before  the  legis- 
lature met,  and  then  they  learned  of  the  plan  by  overhearing 
a  conversation  on  a  railroad  train.  They  did  tlieir  utmost 
to  defeat  the  measure,  but  failed.  The  people  were  strenu- 
ously opposed  to  such  monopolistic  legislation,  but  before  they 
could  secure  a  repeal  of  the  law  at  the  next  session  of  the  legis- 
lature, the  city  government  of  Cincinnati  was  induced  to 
grant  a  50-year  franchise  to  the  street  railways  of  that  city, 
and  the  grant  could  not  be  withdrawn. 

8.  Even  ^vith  the  most  virtuous  delegates  and  under  the 
most  favorable  circumstances,  representation  cannot  truly  rep- 
resent in  the  absence  of  the  Referendum,  because  no  man 
thinks  or  feels  just  like  another,  much  less  like  ten  thousand 
•others  of  varying  shades  of  thought  and  feeling.  The  records 
of  actual  referenda  set  forth  in  the  early  part  of  this  chapter 
show  how  impossible  it  is  for  legislators  to  represent  the  peo- 
ple. Time  after  time,  when  a  number  of  constitutional 
amendments  and  other  measures  prepared  by  legislative  bodies 
with  the  utmost  care,  have  gone  to  the  people,  part  or  all  have 
been  rejected,  tho  passed  by  legislature  after  legislature  with 
overwhelming  majorities,  and  totally  free  from  any  suspicion 
of  fraud,  being  intended  from  the  start  for  reference  to  the 
citizens.^ 


mortgage  It— reserving  to  ourselves  scarcely  any  power  except  to  discharge 
them  after  the  harm  is  fully  accomplisht. 

The  city  is  our  stable,  which  we  commit  to  these  servants,  reserving  to 
ourselves  only  the  power  to  discharge  them  after  they  have  allowed  our 
horses  to  be  stolen. 

The  constitution  is  our  pasture  fence;  the  State  is  our  carriage;  our 
legislators  are  our  horses.  With  the  present  arrangements  we  harness  our 
borses,  hitch  them  (often  wild  colts)  to  our  carriage,  throtc  away  lines  and 
whip  and  trust  ourselves  to  the  tender  mercies  of  Providence,  which  is 
supposed  to  have  special  care  of  half-witted  people.  Our  horses  may  balk 
or  He  down  in  harness,  or  they  may  wildly  tear  over  the  pasture,  down 
steep  gullies,  over  roclcy  roads,  and  finally  knock  our  Tsrains  out,  but  we 
have  all  the  time  the  comforting  assurance  that  our  bones  will  be  found 
somewhere  within  the  limits  of  the  seven-rail  pasture  fence  called  the  con- 
stitution. M  ith  the  Initiative  and  the  Referendum  we  would  be  at  all 
times  masters  of  the  situation,  keeping  the  government  constantly  in  our 
own  hands. 

.-*/  ^^  «^9;  ^«?/?  Switzerland  had  developt  her  system  of  Direct  Legis- 
lation, Martin  Rlttlnghausen  wrote  a  little  book  on   "Direct  Legislation  by 


DIRECT  LEGISLATION.  359 

In  July,  '98,  St.  Louis  voted  down  by  more  than  4  to  1  a 
number  of  charter  amendments  passed  by  the  municipal  as- 
Bembly.  At  a  special  election  in  '97,  three  amendments  were 
submitted  to  the  people  of  i^ew  Jersey  by  the  I^islature; 
two  carried  and  the  third  was  lost,  yet  this  third  amendment 
was  the  very  one  that  the  press  and  political  leaders  had  pre- 
dicted would  carry  by  a  large  majority,  since  it  merely  gave 
women  the  right  to  school  suffrage,  which  they  had  already 
enjoyed  for  several  years  under  a  statute,  and  which  has  been 
confeiTed  in  26  states  of  the  Union.  In  1896  tw^o  amend- 
ments, establishing  biennial  elections,  were  submitted  to  the 
people  of  Massachusetts.  They  were  passed  by  the  legisla- 
ture in  the  belief  that  the  people  would  approve  the  change; 
they  were  advocated  by  leading  men  of  the  highest  character 
and  statesmanship,  both  in  and  out  of  the  dominant  party. 


the   People"   In   which   he   gave   nine   reasons   why   the    "representative   sys- 
tem" (i.  e.,  the  unguarded  system)  should  not  be  tolerated: 

1.  The  representative  system  is  a  remnant  of  ancient  feudalism. 

2.  It  Is  absurd  to  represent  a  thing  by  its  diametrical  opposite,  black 
by  white,  the  general  interest  of  <^he  people  by  a  particular  interest  opposed 
to  it. 

3.  Representation  in  government  Is  a  fiction  and  nothing  but  a  fiction. 
Representation  does  not  exist,  unless  that  term  is  applied  to  a  continual 
antagonism  of  those  whom  one  is  alleged  to  represent. 

4.  Even  if  there  happened  to  be  a  case  of  genuine  representation  thru 
some  undiscoverable  paragon  of  a  representative,  the  majority  of  the  votes 
of  a  country  would  still  remain  unrepresented. 

5.  In  the  elections  the  intriguer  has  the  advantage  over  the  honest  man, 
because  he  will  not  shrink  from  a  number  of  methods  that  are  disdained 
by  an  honorable  candidate;  the  incompetent  has  an  advantage  over  the 
man  of  ability,  because  three-fourths  of  the  electors  vote,  and  always  must 
vote,  without  knowing  and  without  being  in  a  position  to  judge  the  merits 
of  the  candidate.  Besides,  in  this  mendacious  system  of  government,  the 
election  is  itself  an  absurd  sham.  You  either  ask  the  voter  to  cast  his  ballot 
according  to  his  own  personal  convictions,  upon  the  strength  of  his  acquain- 
tance with  the  capacity  or  honesty  or  the  policy  of  the  candidate,  in  which 
case  you  ask  the  impossible;  or  you  ask  the  voter  to  cast  his  ballot  for 
a  candidate  nominated  by  a  convention,  and  then  you  have  no  election  at  all; 
you  merely  have  a  nomination  secured  thru  a  small  coterie,  itself  domi- 
nated by  motives  of  personal  interest. 

6.  In  a  representative  assembly  many  upright  natures  change  their 
character  entirely;  the  honest  man  Is  there,  the  readiest  to  repudiate  his 
convictions.  There  are  temptations  to  which  it  is  only  possible  to  expose 
men  under  penalty  of  seeing  them  succumb.  One  of  these  temptations  is 
the  power  to  enrich  one's  self  or  one's  family,  to  rise  in  the  worldly  scale; 
that  is  to  say,  to  oppress  one's  fellow  creatures  without  incurring  any 
responsibility  whatever.  Hence  continual  apostasies  and  the  impossibility 
of  ever  creating  a  well-ordered  majority. 

7.  The  fear  of  not  being  re-elected  is  absolutel.v  without  influence  upon 
the  conduct  of  the  unscrupulous  representative.  The  more  he  violates  the 
confidence  reposed  in  him,  the  more  certain  he  may  be  of  re-election. 
Hence  the  most  detestable  politicians  have  the  longest  legislative  careers: 
they  survive  the  fall  of  all  regimes. 

8.  Under  the  influence  of  this  same  tendency  ever.v  representative  as 
eembly  must  necessarily  be  worse  than  the  one  preceding  it. 

9.  Representative  assemblies  are  the  incarnation  of  incapacity  and  evil 
Intent,  from  a  legislative  and  political  standpoint.  In  legislation  they  make 
continual  onslaughts  upon  the  liberties  of  the  people  or  surrender  the 
Blender  patrimony  of  the  poor  to  speculators.  Politically,  the  situation  la 
Btlll   worse,   if  that  be   possible. 


360        GOVERNMENT  BY  AND  FOE  THE  PEOPLE. 

The  amendmeaits  were  lost.  Groveimor  Wolcott  (who  was  an 
advocate  of  the  amendments)  says  in  his  annual  address  to  the 
Legislature  for  1897: 

"On  both  these  important  questions,  which  have  demanded  so 
much  time  of  your  predecessors,  the  decision  of  the  people  is  so 
emphatic  as  to  afford  little  encouragement  for  an  early  renewal  of 
the  discussion." 

The  best  of  men,  the  ablest  of  statesmen,  do  not  really 
know  what  the  people  want.  The  only  way  is  to  ask  the 
people. 

It  is  clear  that  the  people  are  not  truly  represented  by  dele- 
gate legislation.  We  have  some  attempts  at  representation, 
together  with  geographical  representation  and  boss  represen- 
tation, and  machine  representation,  and  corporation,  trust 
and  combine  representation.  Harper's  Weekly,  discussing 
"The  Breakdown  of  Legislatures,"  says: 

"Legislatures,  as  they  were  originally  conceived,  are  breaking 
down  because  the  representative  character  of  their  members  has 
changed.  They  have  not  ceased  to  represent  somebody.  They  are 
as  responsible  now  as  they  ever  were  in  the  past;  but  they  repre- 
sent a  small  organized  element  of  the  voters  which  is  under  the 
control  of  the  'machine,'  and  they  are  responsible  to  the  boss  of 
that  machine." 

The  question  of  Direct  Legislation  is  equivalent  to  the 
question,  "Ought  the  people's  will  to  govern  all  the  time, 
or  only  now  and  then?  ^hall  the  ascertainment  and  execu- 
tion of  the  people's  will  be  made  as  easy  and  perfect  as  pos- 
sible, or  shall  it  continue  imperfect  and  difficult  f" 

Senator  Marion  Butler  says  that  no  man  can  oppose  Direct 
Legislation  "unless  he  is  at  heart  opposed  to  popular  govem- 
men."i 


*  This  is  bed  rock.  To  deny  the  Initiative  and  Referendum  is  to  deny 
self-government  and  democracy;  to  affii-m  self-government  and  democracy 
Is  to  affirm  the  Initiative  and  Referendum.  The  whole  literature  of  the  sub- 
ject focuses  upon  that  fundamental  fact. 

Any  one  who  desires  to  go  more  fully  into  the  matter  will  do  well  to 
obtain  J.  W.  Sullivan's  "Direct  Legislation  thru  the  Initiative  and  Refer- 
endum;" The  Direct  Legislation  Record,  edited  by  Eltweed  Pomeroy,  New- 
ark, N.  J.;  United  States  Senate  Document,  340,  55th  Congress,  second  ses- 
sion, July  8,  1898,  also  edited  by  Pres.  Pomeroy;  Dr.  B.  P.  Oberholtzer's 
"Referendum  in  America"  and  "King  People;"  S.  E.  MofCett's  "Suggestions 
on  Government;"  W.  D.  McCrackan's  "Swiss  Solutions  of  American  Prob- 
lems," and  the  chapter  on  Direct  Legislation  in  "The  American  Common- 
wealth," by  James  Bryce.    The  larger  histories  of  Swiss  institutions  men- 


THE    i:!fITIATIVE    AXD    REFERENDUM.  361 

John  Qiiinev  Adams  said  that  "the  vaW  of  the  people  is 
the  end  of  all  legitimate  government  on  earth." 

A  bit  of  history  and  a  closing  illustration  may  emphasize 
the  clumsiness  of  present  methods. 

The  Republican  Congress  did  their  best  to  please  the  people 
in  1883,  but  in  1884  the  people  exprest  their  disgust  by  elect- 
ing a  Democratic  President.  The  next  four  years  of  Demo- 
cratic rule  did  not  suit  the  nation  either,  and  it  returned  the 
Republicans  to  power  in  1888.  They  began  to  apply  their 
favorite  remedy,  the  revision  of  the  tariff,  and  passed  the  Mc- 
Kinley  law  in  1890.  The  people  exprest  their  appreciation 
by  almost  annihilating  the  Republican  party  in  the  eleetions 
of  November,  '90,  immediately  after  the  said  law  was  enacted, 
and  in  1892  Cleveland  was  again  elected  and  the  Democrats 
had  a  large  majority  in  Congress.  They,  too,  appeared  to 
think  that  the  tariff  was  the  only  thing  above  ground  worth 
the  serious  attention  of  a  Congressman  (after  his  own  private 
affairs  are  provided  for,  of  course,  if  he  is  of  the  sort  that  has 
private  affairs),  and  they  consequently  got  out  a  new  edition 
of  the  tariff  in  1894.  Again  the  people  showed  their  disgust 
by  an  overwhelming  rebuke  at  the  polls — the  Democrats  were 
completely  snowed  under,  the  Republicans  again  put  in  con- 
trol of  CongTCSs,  a  large  number  of  People's  Party  members 
elected,  about  doubling  their  former  representation,  and  in- 
dubitable indications  of  the  Republican  triumph  which  came 
in  1896.  Poor,  dumb  people,  with  no  chance  to  tell  distinctly 
what  they  do  want,  but  driven  to  the  clumsy  method  of  chang- 
ing agents  once  in  two  or  four  years  in  the  hope  that  one  of 
them  may  sometime  discover  what  they  desire.     Poor,  de- 


tioned  in  the  text  when  speaking  of  The  Rising  Tide  of  Thought  ma.v  also  be 
read  with  advantage,  and  a  number  of  valuable  magazine  articles  may  be 
found  by  consulting  Poole's  Index  and  the  bibliography  in  the  Direct  Legis- 
lation Record,  June,  1898,  pp.  45-50.  The  reader  will  find  that  the  first  six 
or  seven  references  (Sullivan  to  Bryce).  together  with  the  present  chapter, 
will  afford  ample  material  for  any  ordinary  purpose.  This  chapter  follows 
an  original  line  of  thought,  contains  a  good  deal  of  new  matter  and  an 
analysis  of  prior  treatments.  I  owe  most  to  the  Direct  Legislation  Record 
and  Senate  Document  340,  which  are  invaluable  to  any  student  of  Direct 
Legislation. 

Since  this  chapter  was  set  up  three  valuable  contributions  to  the  lit- 
erature of  Direct  Legislation  have  come  to  my  notice;  first,  Eltweed  Pom- 
eroy's  article,  "Objections  Answered,"  Aren-a,  Vol.  22.  p.  101;  second,  A.  A. 
Brown's  article,  "Direct  Legislation  now  in  Operation,"  Ibid.  p.  97;  and 
third,  the  4  page  "Leaflet  1,"  and  12  page  "Study  1,"  published  by  "The 
Social  Reform  Union,"  of  which  the  Rev.  W.  D.  P.  Bliss,  of  Chicago,  is 
president. 


362  THE  END  OF  OOBBUPT  LEGISLATION. 

voted,  hardworking  agents,  truly  there  is  not  much  comfort 
in  your  undertaking  at  best,  for  when  you  think  you  have  got 
things  fixed  up  beautifully  and  ask  for  your  reward,  you  re- 
ceive a  tremendous  kick  from  your  dumb  employer.  Instead 
of  this  tedious  method  of  kicking  out  one  agent  after  another 
till  you  find  one  with  sense  enuf  to  discover  what  is  needed, 
and  goodness  enuf  to  do  it,  how  much  better  it  would  be  if 
the  people  were  allowed  to  become  articulate,  able  to  ecxpress 
their  wish  distinctly  on  each  separate  issue. 

The  people  are  now  in  the  position  of  a  deaf  and  dumb 
man  who  was  not  permitted  to  tell  what  he  wanted  for  dinner 
except  by  picking  out  one  of  several  bills  of  fare  and  ordering 
it  as  a  whole.  Each  bill  of  fare  had  the  cook's  name  at  the 
top  and  a  program  for  dinner,  which  in  every  case  included 
some  things  the  dumb  man  wanted  and  some  he  did  not  want. 
As  he  had  to  select  a  whole  menu,  with  its  cook,  and  could 
not  pick  out  particular  dishes,  and  as  the  cook  used  her  dis- 
cretion as  to  which  dishes  on  her  list  she  would  serve,  if  any, 
and  generally  mixed  up  the  food  and  seasoned  it  with  more 
regard  to  her  own  taste  than  to  that  of  the  dumb  man,  he  was 
naturally  displeased  with  his  diet,  and  kept  discharging  the 
cooks  as  fast  as  he  could,  until  at  last  a  wiser  and  more 
thoughtful  cook  than  the  rest  devised  the  plan  of  sending  a 
blank  sheet  of  paper  and  a  pencil  along  with  the  bill  of  fare, 
so  that  the  dumb  man  could  write  "yes"  after  the  roast  lamb, 
fried  potatoes,  charlotte  russe,  or  whatever  else  he  wanted, 
and  if  there  was  anything  he  desired  that  was  not  on  the  bill 
of  fare  he  could  write  the  name  of  it  on  the  blank  sheet. 
After  this  everything  went  well  with  the  dumb  man;  his  diet 
suited  his  taste  and  he  grew  healthy  and  happy;  and  he  could 
not  do  enuf  to  show  his  appreciation  of  the  cook's  skill  in  pre- 
paring the  dishes  he  called  for. 

SuiUIAEY    StTATEMENT. 

Law  making  by  final  vote  of  delegates  is  not  self-government,  but 
government  by  an  elective  aristocracy. 

The  REMEDY  is  tbe  extension  of  Direct  Legislation  thru 
the  Initiative  and  Referendum. 


THE  POPULAH  VETO.  t{63 

The  Initiative  is  tlie  proposal  of  a  law  by  a  reasonable  percentage 
of  the  voters. 

The  Referendum  is  the  submission  of  a  measure  to  the  people 
for  final  approval  or  rejection;  obligatory,  when  all  but  ur- 
gency measures  mu^t  be  submitted;  optional,  when  submission 
may  be  required  by  petition  of  a  reasonable  percentag-e  of 
voters;  legislative,  when  the  option  of  submission  is  in  the 
legislature  or  council;  executive,  when  the  option  is  with  the 
major  or  governor,   etc. 

Otherwise  stated,  the  initiative  is  the  right  of  provoking  a  decision 
of  the  sovereign  i)eople,  and  the  referendum  is  the  right  of 
making  such  decision. 

Direct  Legislation  is  already  in  full  use  in  town  affairs.  The  Ref- 
erenduvi  is  obligatory  in  the  making  of  constitutions,  and  quite 
generally  in  certain  city  matters,  and  it  may  be  used  in  all  city 
and  state  affairs  at  the  option  of  the  legislative  authorities. 

All  that  is  necessary  is  to  put  the  option  in  the  people  in  the  case 
of  city  and  state  enactments  (or  make  the  submission  ob- 
ligatory) and  add  the  initiative.  In  this  waj^  the  principle 
of  Direct  Legislation  will  be  consistently  applied  from  end  to 
end  of  the  scale  of  legislation. 

This  has  been  dane  in  South  Dakota  by  constitutional  amendment, 
in  Oregon  and  in  Utah  a  similar  amendment  has  passed  the 
legislature,  Nebraska  has  a  statute  giving  Direct  Legislation 
to  cities  at  their  oi>tion,  San  Francisco  has  the  Initiative  and 
Referendum  in  its  charter,  etc. 

3^e  movement  for  Direct  Legislation  (or  strictly  speaking,  the 
movement  for  the  extension  of  Direct  Legislation)  is  gro'wing 
with  astonishing  vigor  and  unparalleled  rapidity. 

REASONS  for  Direct  Legislation: 

It  will  establish  self-government  in  place  of  government  by  coun- 
cils and  legislatures;  democracy  in  place  of  elective  aristoc- 
racy; government  by  and  for  the  people  in  place  of  government 
by  and  for  the  politicians  and  the  corporate  interests  whose 
instrimaents  they  are. 

It  and  it  only  can  and  will  destroy  the  private  monopoly  of  legislative 
power,  and  establish  public  ownership  of  the  government.  The 
fundamental  questions  are,  "Shall  the  people  rule  or  be  ruled? 
Shall  they  own  the  government  or  be  ovraed  by  it?  Shall  they 
control  legislation  or  merely  select  persons  to  control  it?"  The 
Referendum  answers  these  questions  in  favor  of  the  people. 

It  will  perfect  the  representative  system,  correcting  the  evils  of 
the  unguarded  method  of  making  laws  by  final  vote  of  a  body 
of  delegates  beyond  the  reach  of  any  immediate  effective  con- 
trol by  the  people. 

It  will  give  the  representatives  a  keener  regard  for  public  opinion, 
and  enable  the  people  to  pass  on  their  action  before  it  takes 
effect. 


364  THE  OPEN  DOOB  OF  PROGRESS. 

It  will  constitute  "a  curb  to  the  never  ending  audacity  of  elected 
j>ersons." 

It  will  remove  the  concentration  of  temptation  by  diffusing  power; 
it  will  no  longer  pay  to  spend  much  time  and  money  bringing 
strong  pressure  to  bear  on  a  few  legislators,  beca\ise  their  ac- 
tion will  not  be  final — they  cannot  deliver  the  goods. 

It  will  eliminate  legislative  corruption,  kill  the  lobby,  stop  black- 
mailing bills,  discourage  log-rolling,  check  the  passage  of  pri- 
vate and  local  acts,  and  close  the  door  to  franchise  steals  and 
all  other  sorts  of  fraudulent  legislation. 

The  writer  of  an  unsigned  article  in  one  of  our  newspapers,  after 
explaining  the  workings  of  Direct  Legislation,  says  with  en- 
thusiastic force:  "See  what  splendid  and  irresistible  control 
I    it  gives  the  people  over  the  acts  of  their  faithless  servants!" 

It  will  destroy  the  power  of  legislators  to  legislate  for  personal 
ends. 

It  will  infinitely  dilute  the  power  of  bribery.  s 

It  will  take  politics  out  of  the  slums  and  civilize  them. 

It  will  abolish  the  obstructive  power  of  unscrupulous  minorities 
in  legislative  bodies. 

It  will  undermine  the  power  of  rings  and  bosses. 

Under  Direct  Legislation  a  speaker  can  no  longer  play  the  Czar 
to  any  purpose. 

It  will  lessen  the  influence  of  demagogues. 

It  will  check  the  interference  of  employers  in  elections  and  dimin- 
ish their  power  to  control  the  political  action  of  employees. 

It  will  diminish  partisanship  and  tend  to  wipe  out  party  lines  in 
discussion  and  voting.  The  records  we  have  given  of  the  use 
of  the  Referendum  in  the  United  States  and  elsewhere  prove 
this. 

In  its  complete  form  it  will  enable  men  to  vote  their  convictions 
without  leaving  their  party  or  deserting  its  candidates,  and  so 
will  diminish  the  warping  power  of  party  allegiance. 

It  will  elevate  public  questions  above  mere  party  considerations. 

It  will  simplify  and  purify  elections. 

It  will  work  an  automatic  disfranchisement  of  the  unfit,  and  bring 
out  a  fuller  vote  of  the  more  intelligent  and  public  spirited 
who  now  so  frequently  stay  at  home  because  they  do  not  feel 
like  endorsing  any  of  the  platforms  or  candidates  presented. 

It  will  simplify  and  elevate  the  law. 

It  will  stop  the  prolific  output  of  useless,  or  worse  than  useless, 
laws  and  ordinances,  and  limit  legislation  to  the  few  enact- 
ments really  needed.  The  body  politic  will  no  longer  be  dis- 
graced by  a  fecundity  natural  only  to  organisms  of  a  low  order. 

In  conjunction  with  municipal  home-rule  in  local  affairs  it  will 
relieve  our  legislators  from  the  pressure  of  multitudinous  pri- 
vate, corporate  and  local  measures,  and  enable  them  to  give 
proper  attention  to  matters   of  real  importance;    24,000   bills 


THE   POPCLAR   INITIATIVE.  365 

introduced  in  one  session  of  Congress,  and  in  the  Ne\v  York 
Legislature  1,200  bills,  it  is  said,  to  change  the  charter  of 
Greater  New  York,  to  say  nothing  of  the  mass  of  other  bills 
in  the  same  session;  think  of  it! 

It  will  increase  respect  for  the  law  and  aid  its  enforcement. 

It  will  develop  the  people's  interest  in  public  affairs. 

It  will  compel  the  people  to  think  and  act. 

It  will  elevate  the  press  and  dignify  political  discussion. 

It  will  suppress  the  inducements  that  tempt  ambition  to  pervert 
the  government  to  private  uses. 

It  will  elevate  the  profession  of  politics,  weakening  the  motives 
that  lead  bad  men  into  political  life  and  strengthening  the 
attractions  of  public  affairs  for  men  of  high  character  and 
attainments. 

It  will  add  to  the  dignity  of  every  citizen. 

It  will  have  a  profound  educational  effect  on  the  people  intellectu- 
ally, emotionally  and  morally. 

It  will  favor  stability,  security  and  contentment  in  many  ways, 
affording  a  natural  safetj'-valve  for  discontent,  and  preventing 
its  accumulation,  bringing  responsibility  home  to  the  people, 
stopping  the  schemes  of  political  aggressors,  etc.  Radical 
changes  of  policy  and  delays  disastrous  to  business  will  be- 
come less  frequent,  because  of  the  speedy  consideration  and 
settlement  of  public  questions  in  accordance  with  the  popular 
will.  It  is  a  guarantee  against  disorder.  Revolution  has  little 
chance  where  the  people  can  easily  mould  the  law. 

It  will  do  more  than  any  other  one  tiling  except  the  growth  of 
sympathy  and  conscience  to  secure  a  peaceful  solution  of  the 
great  industrial  problems  that  are  threatening  our  civilization. 

It  will  furnish  a  strong  decentralizing,  counterbalancing  force  to 
save  us  from  the  centralizing,  combining,  trust  and  monopoly 
tendencies  that  are  hastening  us  toward  industrial  despotism. 

It  will  save  the  cost  of  innumerable  impotent  petitions  and  power- 
less mass-meetings,  lobby  expenses,  abortive  investigations,  ex- 
cessive printing  of  special  laws,  local  acts,  private  legislation, 
etc.  The  cost  of  legislative  sessions  of  councils,  legislatures 
and  so  forth  could  also  be  reduced;  perhaps  one  chamber  of 
moderate  size  would  be  sufficient  with  the  Referendum. 

It  will  put  honesty  in  power. 

It  will  make  the  right  of  petition  impartial  and  imperative. 

It  will  open  the  door  to  all  other  reforms  as  fast  as  the  people  de- 
sire them. 

It  will  no  longer  be  necessary  to  wait  till  the  millionaires  and  po- 
litical bosses  are  ready  for  the  curtain  to  go  up. 

Neither  will  it  be  necessary  to  organize  a  new  party  in  order  1>o 
carry  a  reform.  The  full  sentiment  in  favor  of  a  measure 
may  be  exprest  at  each  election  and  its  growth  recorded  more 
perfectly   than   is   possible   by   party   action.     Existing   parties 


366  '  THE  CITY  FOE  THE  PEOPLE. 

would  be  eag«r  to  endorse  a  measure  that  showed  much 
strength  or  rapidity  of  growth,  and  it  would  be  carried  long 
before  a  new  party  could  rally  half  the  sentiment  that  might 
exist  in  its  favor.  It  takes  a  strong  pull  to  break  up  party 
organizations  and  get  men  away  from  life-long  affiliations. 
That  difficulty  in  the  path  of  reform  would  be  re-moved  by 
Direct  Legislation. 

It  is  the  only  way  to  prove  and  overcome  misrepresentation. 

It  means  the  enfranchieement  of  all  voters  on  all  questions  at  all 
times,  in  place  of  the  disfranchisement  of  nearly  all  voters 
at  nearly  all  times  on  all  questions  upon  which  they  differ 
from  councilmen  and  legislators. 

It  means  that  the  mighty  power  of  the  ballot  may  be  used  not 
merely  one  day  in  the  year,  but  any  day  the  public  good  re- 
quires— that  the  great  engine  of  popular  sovereignty  may  be 
made  to  move  whenever  the  people  see  fit  to  turn  on  the  steam. 

It  means  that  the  people  will  have  constant  and  effective  control 
of  their  government. 

It  is  the  fulfilment  of  Lincoln's  grand  promise  and  prophecj',  "a 
government  of  the  people,  by  the  people  and  for  the  people." 

It  is  required  by  the  fundamental  principles  of  ethics  and  religion. 
The  law  of  love  and  the  brotherhood  of  man  cannot  be  satis- 
fied without  legislative  equality.  The  rule  of  the  few  is  un- 
christian— antagonism,  not  love;  mastery,  not  brotherhood. 

It  is  immediately  and  easily  practicable. 

It  will  make  the  interest  of  the  lawgiver  coincide  with  justice, 
and  identify  power  with  the  public  good. 

It  will  suppress  class  legislation. 

It  will  tend  to  the  diffiision  of  wealth  by  depriving  the  wealthy 
of  their  overweight  in  government  and  placing  the  prepon- 
derance of  legislative  power  in  the  great  middle  and  producing 
classes,  whose  interests  are  opposed  to  vast  aggregations  of 
private  capital. 

Every  election  is  a  reference  to  the  people,  a  submission  of  certain 
matters  to  voters  for  decision;  what  we  call  "Direct  Legisla- 
tion" simply  extends  the  application  of  the  principle  and  im- 
proves the  method.  Shall  vre  refer  things  in  heaps  for  a  com- 
pound judgment  on  each  heap,  according  to  the  antiquated 
method  of  reference  or  shall  we  ask  for  a  judgment  on  each 
item? 

The  referendum  will  separate  the  judgment  on  men  from  the 
judgment  on  issues. 

It  will  disentangle  issues  and  permit  each  one  to  be  judged  on  its 
own  individual  merits,  thus  ridding  us  of  our  conglomerate 
politics,  with  its  mixture  of  issues  in  complex,  ambiguous 
platforms,  each  mixture  to  be  taken  only  with  a  specified  can- 
didate or  set  of  candidates. 
It  will  develop  civic  patriotism  and  intelligent  participation  in 
public  affairs. 


DIBECT  LEGISLATION.  367 

It  will  make  the  gx>vernmeiit  more  flexible,  more  easily  adapted 
to  chang-ing-  conditions.  Constitutions  could  be  changed 
readily,  statutes  repealed  or  vetoed,  new  measures  instituted, 
"deadlocks"  deprived  of  their  force,  and  the  lavs^  rendered  ai« 
together  less  rigid  than  at  present. 

It  will  tend  to  unite  the  people.  Interests  and  opinions  on  specific 
measures  do  not  follow  existing  lines  of  division.  People  w^ill 
be  drawn  together  across  the  boundaries  of  the  various  or- 
ganizations. The  fibres  of  political  fellowship  vsdll  run  over 
and  thru  party  walls.  The  upper  classes  will  taJce  a  deeper 
interest  in  the  lower  classes,  come  into  closer  sympathy  and 
more  permanent  contact  with  them  and  take  a  more  active 
part  in  their  political   education. 

It  is  the  simple  common  sense  right  of  the  people. 

One  delegate  in  legislative  hall  or  council  chamber  can  initiate  a 
measure;  surely  a  thousand  or  five  thousand  or  ten  thousand 
citizens  ought  to  have  as  much  right  as  a  single  delegate 
elected  perhaps  by  themselves. 

It  will  help  the  people  to  understand  their  own  affairs,  their  city, 
state,  nation,  the  age  in  which  they  live — a  matter  of  the  ut- 
most importance,  which  cannot  be  accomplished  without  the 
Referendum,  for  the  people  will  never  thoroly  imderstand 
public  affairs  till  they  are  called  on  to  decide  them. 

Under   the   Initiative    and    Referendum,    the   people,   with    the    co- 
operation of  councils  and  legislatures,  will  exercise  the  legis- 
lative pow^er. 
Direct  legislation  will  make  it  easier  to  elect  good  men  and  to 
keep  them  good  after  they  are  elected. 

It  -will  give  the  chief  power  in  effective  form  to  the  great  body 
of  the  common  people,  in  whom  the  main  hope  of  the  future 
lies. 

It  will  give  Labor  its  true  weight  and  influence. 

It  is  the  vrorking  man's  main  issue,  and  is  recognized  as  such  by 
organizations  representing  millions  of  the  producing  classes. 

It  is  not  a  class  movement,  however,  but  will  benefit  all  classes; 
even  the  bosses  and  politicians  w^ho  oppose  it  will  be  lifted 
by  it  to  a  nobler  plane  of  life. 

It  is  not  a  party  movement;  leading  rtiembers  of  all  parties  are 
working  for  it.  It  has  been  demanded  in  Democratic,  Populist, 
Republican,  Prohibition,  and  Socialist  platforms,  and  some- 
times everj^  party  in  the  state  has  advocated  it  at  the  same 
time.  It  has  been  endorsed  in  38  state  platforms  and  by  more 
than  3,000  newspapers  and  magazines  representing  every  shade 
of  political  opinion  and  party  affiliation. 

Those  who  believe  in  private  ownership  of  the  government  do  not 
like  the  Referendum,  but  other  people  favor  it  as  soon  as  they 
understand  it. 


368         GOVERNMENT  BY  AND  FOB  THE  PEOPLE. 

Many  regard  it  as  the  primary  measure/  and  few  progressive  peo- 
ple put  it  below  the  second  place  in  the  list  of  leading  reforms. 
Anti-monoi>olists  say,  "Public  Ownership  and  Direct  Legisla- 
lation";  temperance  specialists  declare  for  "Prohibition  and 
the  Referendum";  single- taxers  write,  "The  single  tax  and  the 
Referendum,"  etc.  There  is  a  story  of  a  group  of  Greek  gen- 
erals choosing  a  commander-in-chief.  Each  was  to  write  down 
his  first  choice  and  his  second  choice.  When  the  ballots  were 
counted,  it  was  found  that  the  first  choice  votes  were  scatter- 
ing, every  general  having  one,  but  the  second  choice  votes 
were  all  for  the  same  man.  Each  general  cast  his  first  vote 
for  himself  or  his  pet  friend,  but  when  it  came  to  his  second 
choice  he  exercised  his  unbiased  judgment  and  then  there 
was  no  difference  of  opinion.  This  consensus  of  second  choice 
votes  had  vastly  more  weight  than  any  of  the  scattering  first 
choice  ballots  and  the  man  each  general  voted  for  next  to  him- 
self or  his  i)et  hobby  was  recognized  as  the  proper  commander- 
in-chief.    The  application  is  easy. 

Indirect  legislation  is  not  much  wiser  as  a  rule  than  indirect  love- 
making.  The  people  get  what  they  want  thru  indirect  legis- 
lation about  as  well  as  Miles  Standish  got  what  he  wanted 
thru  representative  love-making. 

Direct  legislation  means  control  of  your  servants  instead  of  letting 
your  servants  control  you. 

It  is  simply  a  common  sense  application  of  the  establisht  princi- 
ples of  agency,  affording  the  principal  his  proper  rights  of 
veto,  instruction,  direction,  control  and  discharge. 

Analogy  calls  for  it  on  several  essential  grounds. 

Evolution  requires  it.  Nothing  develops  manhood  like  responsi- 
bility in  large  affairs;  nothing  develops  society  like  universal 
thought  and  discussion,  social  judgment  and  concerted  action 
of  the  whole  community. 


•  The  American  Federation  of  Labor  made  Direct  Legislation  their  first 
and,  for  a  time,  their  sole  political  demand.  The  National  Social  and  Politi- 
cal Conference  at  Buffalo,  July  3,  18!)9,  by  practically  unanimous  vote. 
adopted  Direct  Legislation  as  the  first  In  the  list  of  measures  urged  upon 
the  people  and  to  which  the  conference  pledged  its  support  in  Its  famous 
Address  to  the  Public.  Direct  taxation,  public  ownership  of  monopolies  and 
government  control  of  the  medium  of  exchange  are  also  urged  in  the  order 
stated. 

Mayor  Jones  makes  Direct  Legislation  with  direct  nomination  of  candi- 
dates by  the  people,  the  first  plank  in  the  admirable  platform  on  which  he 
stands  as  Independent  candidate  for  Governor  of  Ohio.  Public  ownership 
of  all  public  utilities  Is  the  second  plank;  an  8  hour  day  and  better  wages, 
third;  abolition  of  the  contract  system,  fourth;  and  state  action  to  secure 
employment  for  the  unemployed,  fifth. 

The  Social  Reform  Union  puts  Direct  Legislation  with  proportional 
representation  first;  public  ownership  of  public  utilities,  second;  taxation  of 
land  values,  franchises,  inheritances  and  incomes,  third;  money  Issued  by 
the  government  only  and  regulated  In  qflantltv  so  as  to  maintain  a  level 
average  of  prices,  fourth;  and  anti-militarism,  fifth. 

There  can  be  no  doubt  that  Direct  Legislation  is  logically  the  first  of  all 
progressive  measures  In  order  of  time  and  importance.  It  is  the  key  to  the 
whole  situation.  But  in  presentation  I  have  usually  found  it  best  to  speak 
of  the  evils  of  monopoly  and  the  benefits  of  public  ownership  first,  to  awaken 
interest  and  fill  the  thought  with  the  vital  problems  which  constitute  the 
great  need  for  the  initiative  .^nd  referendum,  thereby  preparing  the  mind  for 
a  fuller  appreciation  of  Direct  Legislation  when  it  is  presented. 


THE    INITIATIVE    AND    KEFEREXDUM.  369 

Justice  and  equality  demand  it. 

It  is  necessary  to  g-ood  government. 

If  Thomas  Jefferson  was  correct  in  saying  that  "Governments  are 
republican  only  in  proportion  as  they  embody  the  will  of 
the  people  and  execute  it,"  and  "Government  is  more  or  less 
republican  in  proportion  as  it  has  in  its  composition  more  or 
less  of  this  ingredient  of  the  direct  action  of  the  citizens" — 
if  these  opinions  of  one  of  the  greatest  of  those  who  formed 
the  national  constitution  are  to  be  deemed  correct — in  other 
words,  if  Jefferson  knew  what  he  was  talking  about,  then  the 
Eeferenduna  is  required  to  fulfil  the  federal  constitution,  be- 
ing necessary  to  carry  out  the  provision  which  guarantees  the 
States  a  republican  form  of  government. 

High  authorities  believe  it  is  necessary  to  the  perpetuity  of  free 
institutions — the  onlj^  thing  that  can  check  the  encroachments 
of  monopoly  and  corruption. 

It  is  in  harmony  with  American  principles.  In  fact,  it  is  the  nec- 
essary' outcome  of  their  logical  application. 

It  is  already  a  part  of  the  American  system  of  government.  All 
we  need  is  an  extension  of  methods  now  in  use. 

Experience  in  Switzerland,  England,  France,  Canada,  Australia  and 
the  United   States  proves  the  great  value  of  the  Referendum. 

It  has  shown  itself  to  be  wisely  conservative  and  judiciously  pro- 
gressive,    educating,     elevating,     purifying,     non-partisan     and 
patriotic. 
It  makes  for  peace.     Where  the  people  decide,  w^ar  will  be  rare.^ 

Eminent  statesmen,  jurists,  philosophers  and  philanthropists  ad- 
vocate it,  and  distinguished  men  and  women  in  every  sphere 
of  life  favor  its  adoption. 

No  one  of  high  authority  opposes  it,  and  rarely  any  one  objects 
to  it  except  those  whose  political  supremacy,  legislative  frauds, 
franchise  schemes  or  other  selfish  interests  would  be  endan- 
gered by  it. 

It  is  the  line  of  least  resistance  in  reform  to-day. 

The  drift  of  public  sentiment  sets  strongly  towards  the  extension 
of  Direct  Legislation. 

The  trend  of  events  in  this  country  is  in  that  direction.'  Professor 
Bryce  says  (American  Commonwealth,  Vol.  I,  p.  447),  "The 
Americans  tend  more  and  more  to  remove  legislation  from 
the  legislatures  and  entrust  it  to  the  people," — and  the  facts 
of  this  chapter  abundantly  confirm  this  statement. 

^  Switzerland  has  no  standing  army.    It  is  forbidden  by  fundamental  law. 

'  In  his  article  on  Constitutional  Law,  in  the  American  and  English 
Cyclopedia  of  Law,  Mr.  C.  S.  Lobinger  says  that  the  tendency  toward  Direct 
Legislation  has  rapidly  iucreast  since  the  middle  of  the  century,  and  haa 
manifested  itself  in  several  forms: 

"1.  In  referring  matters  of  local  Interest  and  administration  to  the 
electors  of  the  locality  interested. 

"2.  In  enlarging  the  scope  of  State  constitutions  by  adding  multitudinous 
administrative  provisions,  all  of  them  being  submitted  to  the  voters. 

"3.  In   the  great  popular  interest  in  the   Referendum  itself."     (Vol.   VI, 
2d  ed.,  p.  1022.) 
24 


370  THE    END   OF   CORRUPT    LEGISLATION. 

The  whole  movement  of  modern  history  points  to  the  Referendum. 

It  is  the  fulfilment  of  Liberty,  Equality  and  Justice,  for  which  the 
American  and  French  revolutions  were  fouf?ht  and  won. 

Our  century  is  filletl  from  end  to  end  with  the  growth  of  the  peo- 
ple's power,  and  the  evolution  of  democracy  must  inevitably 
lead  to  Direct  Legislation  along  the  whole  line. 

The  progress  of  civilization  means  the  uplift  of  the  common  peo- 
ple. Once  only  the  sovereign  could  make  a  law;  all  others 
were  his  subjects;  now  the  people  make  some  laws,  influence 
to  some  extent  the  making  of  the  rest,  and  have  in  theory  the 
riffJit  to  exercise  the  whole  jwwer  of  government;  at  last  the 
theory  will  be  realized  and  the  i)eople  will  be  sovereign  in  fact 
as  well  as  in  name, — no  laws  will  be  made  against  their  sov- 
ereign wish,  and  all  laws  their  sovereign  majesty  desires 
will  be  enacted, — a  state  of  things  impossible  except  thru  Di- 
rect Legislation. 


OBJECTIONS. 

Objections  to  Direct  Legislation,  are  made  by  those  who  do 
not  undertsand  it — those  who  overestimate  the  effects  of  other 
reforms  like  proportional  representation^ — those  who  think 
the  referendum  ^vill  interfere  with  the  dignity  and  usefulness 
of  councils  and  legislatures — those  whose  personal  power 
would  be  diminished,  or  their  private  interests  subjected  to 
the  public  interest — those  who  object  because  of  natural  in- 
clination to  take  the  other  side,  or  chance  prejudice  derived 
from  dislike  or  opposition  to  the  person  bringing  the  matter 
to  their  notice  or  prominently  advocating  it  in  their  neigh- 
borhood— those  who  are  conservative  by  inherited  mental  in- 
ertia— those  who  object  to  change  on  'the  general  principle 
that  they  are  pretty  comfortable  as  they  are — and  those  who 
distrust  the  people  and  have  aristocratic  leanings. 

Ignorance,  prejudice,  self-interest  and  doubt  of  democracy 
appear  to  be  the  sources  of  objection  to  the  initiative  and  ref- 
erendum. Given  a  clear  understanding  of  the  facts,  the  na- 
ture and  workings  of  the  referendum  and  of  the  unguarded 
system  of  lawmaking  by  final  voting  of  the  delegates,  and  the 
attitude  on  direct  legislation  depends  on  the  answer  the  person 
would  give  in  his  heart  to  the  question,  "Shall  the  government 
belong  to  the  people  or  to  a  class?" 


THE  POPULAR  VETO.  •        371 


DOK  T  UNDERSTAND. 


1.  Some  persons  say,  "T/<e  Keferendum  icill  keep  the  peo- 
ple voting  all  the  time,  and  the  cost  will  he  too  heavy."  They 
seem  to  imagine  that  the  legislature  of  a  state  would  go  on 
passing  six  or  eight  hundred  laws  a  year,  and  the  people  would 
have  to  vote  on  them  all,  and  so  it  would  cost  an  enormous 
amount  of  money  and  time.  But  we  have  seen  that  the  great 
mass  of  laws  is  local,  and  should  be  left  to  the  municipality, 
and  if  they  were,  the  number  would  be  small  in  each  locality; 
and  that  the  ver}^  existence  of  the  referendum  would  remove 
the  motive  and  opportunity  which  produces  the  greater  por- 
tion of  the  laws  which  remain  after  subtracting  the  locals, 
so  that  the  people  of  a  city  or  state  would  not  ordinarily  have 
to  vote  more  than  once  or  twice  a  year,  deciding  anywhere 
from  one  to  a  dozen  questions  perhaps  each  time.  After  the 
change  was  fully  made,  this  would  be  the  case  even  under 
the  obligatory  referendum;  and  during  the  transition  the  op- 
tional referendum  could  be  used,  so  that  the  amount  of  voting 
done  by  the  people  need  not  be  heavy  at  any  time. 

Most  of  the  referendum  voting  will  probably  be  done  at 
the  regular  elections,  mthout  additional  expense  of  any 
amount.  And  the  cost  of  petitions  and  whatever  special  elec- 
tions may  now  and  then  be  needed  will  be  more  than  balanced 
by  the  great  economies  resulting  from  purer  government  and 
fewer  laws.  All  this  is  clear  in  reason  as  we  have  seen,  and 
has  been  proved  in  the  history  of  Switzerland.  But  even  if 
it  were  not  so,  the  matter  of  cost  is  infinitely  insignificant  in 
the  light  of  the  political  and  social  benefits  of  Direct  Legisla- 
tion. 

During  the  campaign  in  South  Datota  some  of  the  citizens 
thought  that  the  whole  of  the  law  to  be  voted  on  would  have 
to  be  printed  on  the  ballots  and  distributed  to  the  votei-s. 
This,  of  course,  is  entirely  unnecessary.  The  law  can  be  pub- 
lished in  the  newspapers  or  in  bulletin  form  and  put  within 
easy  reach  of  all  the  people.  The  citizens  can  study  its  pro- 
visions at  their  leisure,  and  then  a  few  words  on  the  ballot  to 
indicate  clearly  which  law  is  being  voted  upon  will  be  suffi- 
cient. 


372         «  TlIK  OPEN    DOOi;   <)I"    TKCXJUKSS. 

Finally,  it  must  be  reanembered  that  to  attain  the  end  de- 
sired by  Direct  Legislationi,  it  is  by  no  means  necessary  that 
the  people  should  vote  on  every  measure  passed  by  councils 
or  legislatures;  it  is  sufficient  if  they  have  the  power  to  do  so 
w^henever  they  wish.  The  veay  existence  of  the  power  of 
popular  revision  and  veto  will  obviate  to  a  large  extent  the 
necessity  for  its  use  by  preventinig  the  passage  or  even  the 
introduction  of  the  great  mass  of  corrupt  and  private  bills 
which  wooild  have  Mttl©  chance  of  passinig  muster  at  the  polls, 
and  which  if  passed  by  the  legislature  or  council  would  almost 
certainly  be  summoned  before  the  people  and  vetoed  by  them. 
An  officer  does  not  ordinarily  have  to  use  his  billy  or  pistol 
to  stop  a  wrongdoer  who  is  in  possession  of  his  senses.  An 
employer  is  not  obliged  to  keep  suing  or  discharging  his  agents 
in  order  to  get  them  tO'  obey  his  instructions,  the  knowledge 
that  the  principal  possesses  the  power  to  enforce  his  wisliea 
impels  the  agents  to  respect  them.  So  it  will  be  with  the 
people's  Avishes  under  the  Referendum^.  The  larger  part  of 
the  most  objectionable  legislation  will  not  have  to  be  killed; 
it  will  die  of  discouragement  and  the  powers  of  Direct  Legis- 
lation will  be  invoked  for  the  most  part  only  to  correct  the 
honest  errors  of  judgment  on  the  part  of  legislatures  and  coun- 
cils. 

2.  Some  other  persons  who  don't  understand  say  that  "the 
referendum  is  a  foreign  affair,  an  un-American  idea.''  The 
fact  is,  as  we  have  seen,  that  the  referendum  has  been  prac- 
tised in  America  from  the  beginning.  But  if  it  were  a  foreign 
idea,  that  would  not  prove  it  a  false  one.  I  never  heard  that 
the  multiplication  table,  or  the  golden  rule,  originated  in 
America.  They  seem  to  be  foreign  ideas,  but  they  are  pretty 
good  ones,  just  the  same.  And  even  the  steam  engine  is  not 
indigenous  to  the  soil,  altho  we  find  it  quite  useful  and  en- 
tirely worthy  of  adoption. 

3.  Sometimes  Misconception  says,  "So  you  think  direct 
legislation  is  a  panacea,  do  youf  Well,  you  are  altogether 
mistaken;  it  will  not  accomplish  what  you  hope  from  it." 
The  reply  is  that  we  do  not  deem  Direct  Legislation  a  panacea, 
but  merely  a  very  valuable  remedy.    It  cannot  of  itself  cure 


THE   POPULAR   i:XITIATIVE.  373 

all  diseases  ineirlent  to  liiimanity,  but  it  will  greatly  improve 
the  circulation,  purify  the  blood  and  give  the  natural  recup^ 
perative  power  full  opportunity;  and  these  in  time  mai/  cure 
the  body  politic  completely.  We  know  the  referendum  is 
able  to  accomplish  what  we  hope  from  it,  because  it  has  ac- 
complished it  wherever  it  has  been  given  the  chance,  both  in 
Switzerland  and  in  the  United  States. 

4.  A  more  specific  objector  may  say,  "The  referendum 
cannot  overcome  fraud  and  partisanship,  for  the  potcer  of 
appointment  to  thousands  of  lucrative  offices  icill  still  re- 
main in  the  hands  of  politicians  and  representatives."  We 
have  not  claimed  that  Direct  Legislation  would,  of  itself,  over- 
come all  fraud  and  partisanship,  but  only  legislative  fraud 
and  partisanship;  administrative  abuses  would  remain  until 
the  people  adopted  a  proper  civil  service,  the  attainment  of 
which  would  be  greatly  facilitated  by  the  referendum,  for 
nine-tenths  of  the  people  are  strongly  in  favor  of  conducting 
public  affairs  on  sound  business  principles.  The  referendum, 
of  course,  would  not  enable  the  people  to  execute  the  law  in 
person.  But  abuse  of  administration  is  much  more  easily 
checked  than  coriiipt  legislation.  You  can  tell  what  a  man 
does  much  better  than  what  he  thinks.  To  discover  the  secret 
motive  of  a  legislator  is  a  far  harder  task  than  to  watch  the 
actions  of  a  mayor  or  governor.  In  this  important  distinction 
lies  a  most  vital  political  principle,  of  which  the  referendum 
is  the  full  expression.  The  law  will  have  to  be  administered 
by  judges,  police  and  other  agents,  whether  legislation  be  di- 
rect or  indirect.  But  once  in  full  use,  the  referendum  will 
substantially  rid  the  country  of  legislative  abuses,  and  give 
the  people  an  easy  path  to  the  destroying  of  administrative 
abuses,  especially  if  the  Recall  or  Imperative  Mandate  be 
put  in  vigorous  use  along  with  the  legislative  forms  of  initi- 
tive  and  referendum. 

OVERESTIMATE  OF  SOME  OTHER  REFORMS. 

5.  The  second  class  of  objectors  tell  us  that  all  tee  need  to 
do  is  to  elect  better  representatives — proportional  representa- 


374  THE  CITY  FOii  THE  I'EOrLE. 

turn  and  care  in  the  selection  of  candidates  will  give  us  a 
gooa  government  without  direct  legislation.  It  is  true  that 
much  may  be  done  along  these  lines;  but  they  are  not  in  them- 
selves sufficient.  AVe  have  already  shown  that  representa- 
tives cannot  really  represent  their  sovereign,  even  with  pro- 
portional representation  and  bareful  selection.  Self-govern- 
ment can  never  be  complete  without  Direct  Legislation. 
Neither  will  the  educating,  simplifying  and  purifying  effect 
of  the  refereoidum  be  attained  with  anything  like  the  same 
ease  and  rapidity  in  any  other  way.  We  believe  in  the  meas- 
ures proposed  by  these  persons,  but  the  referendum  is  needed 
also;  we  are  not  willing  to  take  a  couple  of  spokes  in  place  of 
a  complete  wheel. 

DIGNITY   OF   COUNOILMEN  AND   LEGISLATORS, 

6.  The  third  class  of  objectors  consists  of  honest  legislators 
and  their  friends,  who  think  that  ^^the  dignity  of  councils 
and  legislatures  would  depart  with  the  adve?it  of  the  refer- 
endum." We  may  remark,  at  the  first,  that  if  a  measure  is 
for  the  public  good,  the  dignity  of  a  legislature  has  no  excuse 
for  standing  in  the  way;  it  must  yield  if  it  conflicts  with  a 
just  and  beneficial  movement.  But  in  the  second  place,  it 
is  perfectly  clear  that  legislative  dignity  and  honor  will  not 
suffer,  but  be  exalted  by  the  change.  The  dignity  of  a 
delegate  to  a  constitutional  convention  is  greater  than 
that  of  a  member  of  the  legislature;  yet  all  of  the  decisions 
of  the  convention  are  subject  to  approval  by  the  people.  The 
dignity  and  honor  of  the  legislators  in  Switzerland  is  greater 
since  the  introduction  of  the  referendum,  because  a  nobler 
class  of  men  go  into  politics.  The  referendum  takes  nothing 
from  the  power  of  the  legislature-  but  the  power  to  keep  the 
people  from  having  the  laws  they  want — nothing  but  the 
power  to  do  wrong.  The  people  will  still  desire  the  aid  and 
advice  of  men  of  legal  learning  in  the  framing  of  their  laws. 
They  will  revere  the  legislative  lights  more  than  they  do  now, 
because  they  will  live  in  a  purer  atmosphere,  and  be  farther  re- 
moved from  suspicion  of  self-interest,  and  be  more  likely  to 


DIRECT  LEGISLATION.  375 

be  men  of  hi2:li  ability  and  character  on  the  average  than  now. 
In  another  way  the  referendum  will  help  the  legislature; 
when  a  law  is  passed  that  the  people  do  not  want,  or  a  law  is 
not  passed  that  they  do  want,  instead  of  their  having  to 
rise  and  turn  out  the  legislators  in  order  to  obtain  their  -will, 
they  can  leave  the  legislators  quietly  in  their  seats  and  turn 
down  the  law  they  object  to,  or  propose  the  one  they  desire. 

The  referendum  ought  to  commend  itself  to  honest  legisla- 
tors, because  it  will  do  more  than  anything  else  to  lift  their 
profession  out  of  the  mire  and  free  it  from  scandal,  and  be- 
cause it  is  in  line  \\ath  the  duty  they  owe  to  their  sovereign. 
As  Hon.  Thomas  McEwan  told  the  I^ew  Jersey  legislature 
in  committee  of  the  whole,  January  29,  1895: 

"It  is  only  going-  back  to  first  principles;  all  the  g-overnment 
we  have  conies  from  it.  We  representatives  are  here  only  because 
the  people  believe  we  will  do  what  they  wish;  that  is  why  they 
sent  us  here.  We  are  merely  agents,  bound  in  honor  to  do  what 
our  principals  want  done.  It  is  our  duty  first  to  carry  out  their 
wishes  as  well  as  we  can,  and  second,  to  recognize  the  fact  that 
we  may  err,  and  to  provide  therefore  a  simple  way  in  which  the 
people  may  tell  us  whether  we  have  done  so.  Sometimes  in  the 
best  of  legislatures  laws  are  passed  that  are  unsatisfactory  to  the 
people,  and  there  ought  to  be  an  easy  remedy  in  such  a  case,  to 
enable  the  real  sovereign  to  say  that  the  work  of  his  agents  does 
not  suit  him.    That  simple  remedy  is  the  referendum." 


WHAT  USE  WILL  THE  LEGISLATURE   BE 


7.  Another  class  of  objectors  is  concerned  not  so  much  with 
the  dignity  of  the  legislature  as  with  its  usefulness.  "WJiat 
is  the  use  of  eoimeils  and  lef/islatiires/'  they  ask,  "if  the 
people  are  to  malr  the  laics f"  One  would  think  a  person  of 
ordinary  common  sense  would  not  need  to  ask  this  question, 
yet  it  is  asked  time  and  time  again  by  members  of  legislatures 
before  whom  the  referendimi  amendment  is  advocated.  The 
referendum  leaves  summary  measures  for  health,  peace  and 
safety  in  the  care  of  the  legislators,  as  at  present,  and  also 
leaves  them  full  powders  in  every  other  direction,  subject  only 
to  roAasion  by  the  people.  The  legislature  becomes  the 
**ni€rqency  ruin'  and  the  universal  advisor — the  most  ira- 


376         GOVERNMENT  BY  AND  FOR  THE  PEOPLE. 

port-ant  advisory  body  in  the  oommon wealth.  Is  that  being  of 
no  use?  You  might  as  well  say,  "Of  what  use  is  a  constitu- 
tional convention  if  the  people  are  going  to  vote  on  the  pro- 
visions it  recommends?"  or  "Of  what  use  is  the  architect  if 
you  are  going  to  determine  whether  or  no  the  plans  he  makes 
shall  be  carried  out?" 

These  objectors  sometimes  put  their  questions  thus:  "Why 
not  accept  the  work  of  the  representatives  as  final?"  This 
whole  chapter  is  an  answer;  two  reasons  may  be  restated: 
First,  because  representatives  are  not  rulers,  but  agents,  whose 
plans  should  always  be  subject  to  the  principal's  orders.  Sec- 
ond, because  those  who  are  called  representatives  are  very 
of  ter  wisrepresentatives,  and  the  work  they  do  is  not  in  accord 
with  the  people's  will,  as  is  sho^vn  by  the  frequent  reverses 
they  meet  in  their  candidacy  for  re-election,  and  by  the  dis- 
approval of  a  considerable  portion  of  their  work  when  the 
referendum  is  applied  to  it.  Even  when  the  legislator  does 
his  best  ty  represent  the  people  he  may  not  succeed,  because 
of  the  difference  in  reasonings,  interests  and  prejudices;  and 
even  if  he  succeeds,  the  fact  cannot  be  known  except  thru  an 
expression  of  opinion  by  the  people. 

THE   CONSERVATIVES. 

8.  The  attitude  of  some,  if  put  into  words,  would  be  some- 
thing like  this:  "Fm  pretty  comfortable;  let  things  alone.'' 
Such  a  position  will  not  be  taken,  of  course,  by  any  man  of 
sympathy  and  conscience — he  must  be  satisfied  that  other 
men  have  comfort,  libeirty,  justice;  nor  by  any  man  of  energy 
and  intelligence,  for  he  will  not  be  satisfied  with  present  con- 
ditions while  improvement  is  possible. 

9.  The  conservative  does  not  generally  put  the  true  psychol- 
ogy of  the  position  into  \TOrds,  but  finds  some  specific  fault 
with  the  movement.  "It  is  unwise"  Kead  over  this  chapter, 
or  the  Summary  Statement,  please,  and  then  look  me  straight 
in  the  eye  and  say  "The  referendum  is  unwise."  If  you  can  do 
tliat  and  give  me  a  reason  for  such  opinion  other  than  a  mere 
prejudice  or  misconception  or  selfish  interest,  I  will  do  my  best 


THE    INITIATIVE    AND    REFERENDUM.  377 

to  have  yoiir  name  enrolled  in  the  list  of  great  discoverers. 
Soone  people,  when  thej  do  not  like  a  thing,  but  have  no  rea- 
son fit  for  publication,  are  aoeustomed  to  look  very  solemn  and 
say,  "It  is  unwise." 

10  "It  is  cunihersome,"  another  conseiwative  says.  Well, 
let  us  see.  Which  is  the  most  cumbersome?  to  vote  on  a  few 
simple  propositions  now  and  then,  or  to  pile  up  five  hundred 
laws  a  year  in  state  after  state?  to  sign  a  few  petitions  and 
register  a  few  decisions,  or  to  bear  the  burdens  of  corrupt  leg- 
islation, lobby-made  law,  bosses,  rings,  machines,  party  desr 
potism,  private  monopoly  of  government? 

11.  "It  is  dangerovs  to  capital,''^  says  another.  ISTo,  not 
dangerous  to  capital,  but  dangerous  to  the  unfair  acquire- 
ment, unjust  distribution  and  corrupt  use  of  capital — ^not 
dangerous  to  good  wealth,  but  very  dangerous  to  bad  wealth, 
or  rather,  to  the  schemes  of  the  owners  of  it. 

12.  Another  who  has  an  aversion  to  change  as  a  thing  that 
is  totally  opposed  to  his  constitution  and  by-laws,  looks  at  the 
referendum  and  some  of  its  claims,  perhaps,  and  remarks  in  a 
fretful  or  maybe  a  pugilistic  tone,  "Things  are  getting  better, 
why  can't  you  let  'em  alone."  They  never  would  have  got 
any  better  if  they  had  been  let  alone,  and  the  less  they  are 
let  alone  the  faster  they'll  get  better.  These  conservatives 
talk  about  the  referendum  and  other  needed  reforms  just  as 
the  Chinese  talk  about  the  introduction  of  the  railroad.  "The 
locomotive  is  a  noisy  monster.  It  screeches  and  keeps  people 
awake.  The  railroad  will  overrun  our  methods  of  transporta- 
tion and  destroy  the  dignity  of  our  carts  and  palanquins.  The 
manners  of  the  trainmen  are  bad,  and  ti"aveling  in  the  cars 
makes  many  people  ill.  Sometimes  persons  are  killed  by  pass- 
ing trains  and  property  rights  are  disturbed  by  railroads.  It 
it  true  that  they  carry  freight  and  passengers  more  quickly 
and  cheaply  than  our  methods  can,  and  people  would  get 
what  they  want  when  they  want  it  more  nearly  than  now, 
but  that  is  nothing  compared  to  the  noise  and  trouble  of 
change."  It  is  almost  impossible  to  convince  these  chronic 
rebels  against  jDrogress,  because  it  is  not  a  matter  of  reason 
with  them,  but  of  feeling.     Logic  is  a  thing  they  have  little 


378  THE   END   OF   CORRUPT   LEGISLATION. 

acquaintance  with,  or  congeniality  for,  if  it  threatens  their 
ease  or  impinges  upon  their  mental,  moral  or  physical  inertia.-' 

The  final  ans%ver  to  all  the  conservatives  is  that  Direct  Leg- 
islation is  more  consei'vative  than  unguarded  representation. 
The  people  would  pass  some  laws  that  the  representatives 
would  not,  but  they  would  refuse  to  pass  a  far  larger  number 
that  the  representatives  would  and  do  enact,  many  of  them 
the  most  dangerous  and  radical  private  and  class  enactments. 

In  the  ten  years  from  1874  to  1885,  eighteen  measures 
passed  by  the  government  of  Smtzerland  were  sent  to  the 
referendum,  and  thirteen  of  the  eighteen  were  rejected. 
Other  facts  of  the  same  nature  will  be  found  in  the  section  on 
"The  Use  of  the  Referendum."  Boyd  Winchester  says:  ''The 
history  of  the  referendum  confirms  the  fact  that  as  a  rule  the 
people  are  not  favorable  to  legislation,  and  that  the  necessity 
must  be  great  and  the  good  ends  aimed  at  very  manifest  to 
withstand  direct  consultation  of  the  constituencies." 


DISTRUST   OF  THE   PEOPLE.'' 

13.  "Hasty  Legislation .'"  says  one  of  those  who  doubt 
democracy.  "The  people  will  pass  all  sorts  of  laws  without 
sufficient  consideration."  For  answer,  in  addition  to  what  has 
just  been  said,  take  this  from  Sir  Francis  Adams,  Britisli  Min- 
ister to  Berne,  Switzerland : 

"The  referendum  has  struck  root  and  expanded  wherever  it  has 
been  introduced,  and  no  serious  i^olitician  of  any  party  would  now 
think  of  attempting  its  abolition.  The  conservatives,  who  violently 
opposed  its  introduction,  became  its  earnest  supporters  when  they 
found  that  it  undoubtedly  acted  as  a  drag  upon  hasty  and  radical 
lawmaking." 


» There  is  a  class  of  people  who  would  not  like  to  be  classed  as  conserva- 
tives (and  some  of  them  really  have  progressive  ideas  of  a  timid,  hesitating 
variety)  who  tell  us  they  "believe  in  the  Referendum,  it  will  be  a  pood  thing 
when  the  time  comes,  but  we  are  not  ready  for  it  vet."  Not  readv  for  it! 
Not  ready  for  pure  government  in  place  of  corrup'tlon?  Not  readv  for  a 
means  of  cheeking  the  overgrown  power  of  monopolists  and  politicians?  Not 
ready  to  stop  misrepresentation  and  establish  a  real  republic  in  place  of  an 
elective  aristocracy?  Not  ready  to  let  the  sovereign  people  say  what  they 
want?  Amrrira  not  ready  to  take  a  progressive  step  already  successfully 
taken  in  Switzerland?    Bless  you,  friend.  Invent  something  else. 

j  For  a  discussion  by  Eltweed  Pomeroy,  throwing  additional  light  on  the 
loadequacy  of  the  objections  to  Direct  Legislation,  see  "Obiectiona 
Answered,     Arena,  vol.  22.  p.  101.  appearing  after  this  chj^pter  was  in  type. 


j^ THE  POPULAR   VETO.  879 

And  this  from  Professor  Bryce's  chapter  on  Direct  Legisla- 
tion in  the  United  States: 

"A  g-enertil  survey  of  this  branch  of  the  inquiry  leads  me  to  the 
conclusion  that  the  peoi>le  of  the  several  states  in  the  exercise  of 
this,  their  highest  function,  show  little  of  that  haste,  that  reck- 
lessness that  love  of  chang-e  for  the  sake  of  change  with  which 
Eixropean  theorists,  both  ancient  and  modern,  have  been  wont  to 
credit  democracy." 

14.  Another  objector  tells  ns  that  "The  people  are  not 
cmnpeteiit  to  make  the  laws.  Many  laws  are  too  compli- 
cated fm'  ih<'  people  to  understand;  it  takes  lawyers  to  com- 
prehend them." 

Exactly,  and  that  is  the  kind  of  laws  we  want  to  stop.  What 
right  has  a  court  or  policeman  to  arrest  and  punish  me  for 
violating  a  law  I  can't  understand,  even  if  I  read  it  and  study 
it?  Have  I  to  get  a  lawyer  to  explain  the  13,000  odd  statutes 
to  me  every  year?  It  wouldn't  protect  me  if  I  did;  for  the 
lawyers  don't  know  what  the  laws  mean  a  good  deal  of  the 
time,  and  are  continually  wrangling  over  them;  the  legisla- 
tors that  have  passed  them  don't  know  what  they  mean,  but 
Have  to  ask  the  supreme  court;  and  even  the  judges  have  a 
good  deal  of  trouble  to  iind  out  the  meaning,  and  frequently 
disagi'ee  among  themselves  about  it.  It's  these  complicated 
laws  which  people  can't  understand  that  we  are  going  to  get 
rid  of  (for  one  thing)  with  the  referendum. 

But  there  is  another  answer  to  this  objection :  Even  if  some 
of  the  la"\A^  submitted  are  complicated  and  the  people  consent 
to  consider  them  on  their  merits  instead  of  ordering  them 
back  for  simplification,  as  they  would  be  apt  to  do,  still  we 
have  seen  by  the  records  that  there  is  an  automatic  disfranchise- 
ment of  the  unfit  in  most  referendum  votings,  which  is  the 
reverse  of  what  takes  place  in  many  legislative  votings  on 
private  measures,  etc. 

-Moreover,  it  is  hard  to  see  why  it  is  any  more  difficult  to 
vote  for  a  complicated  measure  than  for  a  complicated  man — 
to  vote  for  a  man  under  present  conditions  is  to  vote  for  a 
whole  statute  book  full  of  complicated  measures,  many  of 
them  not  yet  formulated  or  even  dreamed  of. 


380  THE  OPEN  DOOK  OF  PROGRESS. 

15.  There  are  people  who  have  no  faith  in  popular  gov- 
ernment, regard  it  as  dangerous  to  property  and  likely  to  re- 
sult in  unjust  revolutionary  meiasures — "government  by  hold- 
ing up  of  hands,"  "moh-rule,"  etc.,  and  would  like,  witli  Car- 
lyle,  to  hear  the  people  cry,  "O,  my  superiors!  my  heroes! 
come  down  and  rule  me  as  thou  seest  best!  compel  me  to  do 
thy  soveredgn  will" — provided  they  were  recognized  as  among 
the  heroes. 

Carlyle  and  all  his  spiritual  relations  have  missed  these  two 
great  truths:  First,  mankind  has  discovered  that  no  man  can 
be  trusted  to  govern  others  according  to  his  o^vn  sweet  will, 
or  eveui  to  decide  what  the  people's  interests  are;  for  prejudice 
and  self-interest  and  narrow  knowledge  make  it  impossible 
for  any  one  but  the  people  themselves  to  give  a  correct  de- 
cision on  that  point;  even  the  people  may  not  always  judge 
rightly,  but  if  they  have  reached  a  reasonable  degree  of  devel- 
opment they'll  come  much  nearer  to  the  truth  for  themselves 
than  any  one  else  can  be  trusted  to  come  for  them.  Second, 
the  true  ideal  is  not  a  society  in  which  the  masses  of  the  people 
are  incapacitated  for  self-control,  but  a  society  in  which  every 
citizen  is  capable  of  self-government;  mse  enough  and  good 
enough  to  be  worthy  of  a  voice  in  the  management  of  the 
social  partnei-ship.  We  do  want  government  by  our  heroes, 
but  we  also  want  government  by  all  for  all;  and  the  only  way 
to  combine  the  two  is  to  make  all  men  heroes.  It  was  for 
that,  ultimately,  that  the  world  dethroned  its  monarclis,  and 
gave  the  scepter  to  the  mob.  After  humanity  has  so  far  de- 
veloped that  democracy  does  not  involve  an  irretrievable  loss 
of  progressive  power,  then  the  only  way  to  transform  the  mob 
into  manhood  and  make  it  completely  worthy  of  sovereignty 
is  to  place  the  burden  upon  it  and  let  the  responsibility  mould 
it  into  fitness  for  the  ^vo(rk.  The  people  will  learn  how  to 
govern  themselves  much  faster  by  doing  it  than  by  watching 
the  politicians  do  it,  just  as  a  boy  will  leam  how  to  skate  or 
to  play  the  comet  far  better  by  skating  or  playing  himself 
than  b}-  looking  at  some  one  else  perform. 

The  Carlylians  fail  to  note  that 

Self-government  is  necessary. 


THE    POPULAR    INITIATIVE.  381 

1st.  For  liberty  and  justice. 

2d.  ^or  education  and  manhood. 

The  people  of  the  United  States  are  not  a  mob;  they  have 
not  on  the  average  so  much  genius  as  Carlyle,  but  they  have 
better  digestion  and  more  common  sense. 

16.  To  pursue  this  topic  a  little  further,  some  of  these 
people  who  would  reverse  the  wheels  of  progress,  undo  the 
whole  of  modern  history,  abolish  manhood  suffrage  and 
establish  a  high  property  qualification  or  some  other  sort 
of  recognized  aristocracy — some  of  these  radical  retix)gres- 
sional  objectore  to  popular  sovereignty,  the  sovereignty  of  the 
people,  say  that  Direct  Legislation  is  "a  neiv  trick  to  (jet  wis- 
dom cut  of  foolisJmess.''  Well,  you  can  get  it  out  of  fool- 
ishness sooner  than  out  of  eoiTuption.  But  it  ^vill  not  oome 
out  of  foolishness.  The  average  American  citizen  is  quite 
equal  in  sense  to  the  average  politician;  much  more  pro- 
gressive', and  vastly  superior  in  morality.  He  does  not 
know  so  much  of  legal  forms  as  the  legislator,  and  he  won't 
refuse  the  guidance  of  the  legislator  in  that  respect;  but  when 
a  law  is  formulated,  he  can  tell  whether  it  will  suit  him  or 
not  a  great  deal  better  than  the  legislator  can,  even  if  the 
latter  is  perfectly  honest. 

If  the  masses  of  people  are  a  condensation  of  foolishness, 
it  is  curious  that  the  greatest  legislators  all  ever  the  Union 
should  spontaneously  and  unquestioningly  have  entrusted 
them  with  the  adoption  and  amendment  of  the  fundamental 
laws  of  the  states,  the  constitutions.  And  if  the  people  can 
be  trusted  with  the  settlement  of  the  great  principles  of  gov- 
ernment, as  experience  has  shown  that  they  can  be,  surely 
they  can  be  trusted  to  determine  the  by-laws. 

Moreover,  the  people  do  continually  act  upon  the  by-laws, 
in  town-meetings,  city  votes  and  the  election  of  candidates  on 
party  platforms.  It  will  not  be  so  difficult  to  vote  on  each 
issue  separately  as  to  decide  about  three  or  four  platforms,  with 
many  issues  in  each,  plus  the  personalities  of  several  candi- 
dates. It  requires  more  intelligence  to  arrive  at  a  clear  judg- 
ment on  a  lengthy  platform  than  on  propositions  submitted 
singly.    Direct  Legislation  will  simply  enable  the  people  actu- 


382  THE  CITY  FOR  THE  PEOPLE. 

ally  to  accomplish  in  an  easy,  inexpensive  and  scientific  way 
what  they  are  and  in  this  country  always  have  been  endeavor- 
ing to  accomplish  in  a  very  rough,  expensive  and  ineffective 
way. 

PERSONAL  INTEREST. 

17.  Another  class  of  objectors  consist  of  politicians,  mo- 
nopolists, lobbyists,  and  others  who  realize  that  their  selfish 
interests  would  be  injured  by  the  referendum,  or,  in  fact,  by 
any  improvement  in  legislation  tending  to  bring  it  into  closer 
harmony  with  the  public  good.  The  motives  of  this  class  are 
not  very  fragrant,  but  it  is  at  bottom  the  most  rational  of  all 
the  classes  we  are  considering,  for  there  is  no  doubt  of  the 
correctness  of  the  idea  on  which  their  opposition  is  based.  Of 
course  they  do  not  say  much  about  the  real  foundation  of  their 
objection.  They  do  not  say,  "We  are  making  a  good  thing 
out  of  tlie  present  system  of  legislation,  and  we  don't  want 
to  let  the  people  in;  we  don't  want  so  many  partners  on  tlie 
ground  floor."  Instead  of  such  a  frank  avowal,  they  adopt 
the  errors  and  sophistries  of  preceding  classes,  and  ring  the 
changes  on  ^^complicated  laws,"  "hasty  legislation ,"  "foreign 
idea,"  "too  expensive,"  adding,  perhaps,  that  the  words  ^'in- 
itiative  and  referendum"  are  pedantic  and  un-American, 
which  may  be  true,  but  has  no  more  to  do  with  the  nature  of 
Direct  Legislation  and  the  advisability  of  adopting  it  than  a 
man's  name  has  to  do  with  his  character  and  the  wisdom  of 
employing  him  to  clear  out  your  stable  or  build  your  house.^ 

18.  "It  is  impracticable,"  I  have  heard  monopolists  and 
politicians  say.    Get  out  your  statute  books  and  your  histories 


'  Persons  of  this  class  have  even  been  known  to  say  to  the  advocates  of 
the  referendum,  "You  propose  then  that  five  per  cent,  of  the  voters  shall 
overrule  the  will  of  the  majorltyV"  Such  was  the  question  of  the  chairman 
of  the  Senate  Judiciary  Committee,  in  a  legislative  investigation,  Feb.  12. 
1895.  Did  he  really  think  that  was  what  the  referendum  would  do?  or  was 
he  trying  to  "bluff"  the  witnesses— a  game  which  could  only  work  in  case 
of  their  sublime  ignorance,  and  the  equally  colossal  incapacity  of  the  listen- 
ing legislators,  who  were  to  be  influenced  by  the  chairman's  question.  In 
either  case,  if  we  have  legislators  who  can  ask  or  be  Influenced  by  such 
questions  as  the  above,  after  having  the  amendment  carefully  read  to 
them,  and  knowing  that  the  only  right  given  to  5  per  cent  of  the  voters  lo 
the  right  to  prtition  that  a  matter  be  submitted  to  the  people  for  the  very 
purpose  that  the  will  of  the  majority  may  rule  instead  of  the  will  of  tn» 
minority,  as  is  possible  when  such  a  vote  is  not  taken— if  we  have  sucD 
legislators.  It  is  surely  a  powerful  reason  for  some  change  that  shall  take 
the  right  of  final  decision  away  from  such  men. 


DIRECT  LEGISLATION.  383 

ana  see.  Kead  Oberiioltzer's  "Kl  fert  ndiim  in  America"  and 
}  mr  authorities  on  constitutional  law.  You  monopolists  oi 
government  and  industry  know  viry  well  that  the  reierendum 
is  practicable,  and  that  you  are  afraid  of  it. 

19.  "J3ecause  it  works  in  Switzerland  is  iO  sign  it  will 
work  ha  e."  Yes  it  is  some  sign  that  it  will  work  here.  The 
fact  that  it  works  in  Swiss  cities  and  cantons  and  in  the  nation 
is  a  pretty  good  sign  that  it  will  work  in  our  cities  and  states. 
But  we  do  not  need  this  sigTi,  for  we  have  a  better  one,  viz., 
that  it  has  worked  in  our  cities  and  states  in  numerous  trials 
extending  thru  many  years^  and  all  we  ask  is  a  fuller  use  of 
what  we  have  abundantly  shown  our  ability  to  use.  We  have 
proved  that  we  can  swim;  untie  the  rope.  As  to  the  na- 
tion the  problem  may  not  be  as  clear  as  we  might  desire,  but 
the  referendum  in  city  and  state  comes  first,  and  that  is  per- 
fectly clear;  the  rest  will  be  equally  clear  when  we  come  to  it. 

20.  '^Direct  legislation  violates  the  representative  prin- 
ciple.^^ This  is  not  true;  direct  legislation  is  necessary  to  the 
perfection  of  representation.  It  is  lawmaking  by  final  votj 
of  the  delegates  that  violates  the  representative  principle  by 
producing  innumerable  »<  isi-epresentations.  Speaking  of  this 
objection  Mr.  Moffett  says: 

"The  Teutonic  device  of  representation  was  such  a  convenient 
substitute  for  the  unwieldy  popular  mass  meeting'  that  it  gradu- 
allj^  came  to  be  looked  upon  as  a  political  end  in  itself,  instead 
of  as  a  convenient  means  of  enabling  the  electorate  to  evade  the 
limitations  of  time  and  space.  .  .  .  The  representative  system 
is  a  convenient  medium  for  the  transmission  of  political  power, 
just  as  a  system  of  shafts  and  pulleys  is  a  convenient  medium  for 
the  transmission  of  mechanical  povsrer,  and  it  w^ould  be  precisely  as 
reasonable  to  object  to  a  plan  for  gearing-  a  generator  directly 
to  the  machine  it  was  to  work  as  a  violation  of  the  shaft-and-pulley 
principle,  as  to  object  to  a  practicable  plan  of  direct  legislation 
as  an  infraction  of  the  principle  of  representation." 

21.  "/i  would  reduce  the  legislature  to  an  advisory  body." 
I^ot  quite;  it  would  be  advisory  as  to  matters  which  went  to 
the  people,  and  acting  agent  as  to  the  rest.  To  make  the 
legislature  more  than  an  advisors''  body  as  to  measures  on 
which  the  people  wish  to  express  themselves,  is  to  give  th* 


384        GOVERNMENT  BY  AND  FOR  THE  PEOPLE. 

legislature  the  power  of  overruling  the  people  and  make  them 
sovereign  in  place  of  the  people. 

22.  "27te  people  can't  frame  the  laws  for  an  initiative; 
they  donH  know  enuf."  There  are  plenty  of  experts  the  peo- 
ple can.  get  to  do  that.  The  people  can  tell  whether  the  law 
is  what  they  want  when  it  is  framed,  and  that  is  the  important 
matter  for  them. 

23.  "The  people  don't  want  to  vote  on  measures;  the  vote 
is  always  smaller  than  for  candidutes."  Not  always,  but 
usually  it  is  so,  because,  as  a  rule,  the  less  intelligent  do  not 
understand  the  referendum  and  omit  to  vote.  But  this  does 
not  show  any  lack  of  desire  for  the  referendum  on  the  part 
of  the  great  mass  of  the  people.  On  the  contrary,  the  growth 
of  the  demand  for  direct  legislation  exceeds  anything  in  the 
history  of  reform. 

24.  One  of  the  great  standbys  of  the  more  intelligent  of  the 
supporters  of  the  legislative  aristocracy  is  the  assertion  that 
"the  referendum  will  he  unconstitutional,  because  it  is  not 
a  republican  form  of  government."  If  so,  every  state  in  the 
Union,  except  Delaware,  has  violated  the  federal  constitution 
by  adopting  and  amending  its  state  constitution  thru  the  ref- 
erendum, and  there  is  only  one  valid  state  constitution  in  the 
land,  the  rest  being  void,  because  made  in  violation  of  the 
federal  law.  We  have  seen  that  Jefferson  declared  that  the 
republicanism  of  a  government  is  proportioned  to  the  direct 
action  of  the  citizens  in  it,-^  wherefore  no  form  of  government 
(»n  be  completely  republican  without  Direct  Legislation ;  and 
instead  of  forbidding  Direct  Legislation  the  National  Con- 
stitution requires  its  adoption  in  every  state  of  the  Union, 
if  the  guarantee  of  republican  government  in  every  state  is 
to  be  completely  and  perfectly  fulfilled.  ^ 


'  "Government  is  more  or  less  Republican  In  proportion  as  It  has  In  Its 
composition  more  or  less  of  this  ingredient  of  direct  action  of  the  citizens." 
(P.  605,  Vol.  VI,  of  the  H.  A.  Washington  Edition  of  Jefferson's  writings.) 

'The  Standard  Dictionary,  latest  of  all,  says:  '-Republic:  A  state  In 
which  the  sovereignty  resides  in  the  people,  and  the  administration  is  lodged 
m  ofHcers  elected  by  and  representing  the  people,  *  *  •  sometimes 
military,  as  In  Sparta  and  the  earliest  Roman  republic,  sometimes  a  well 
nigh  pure  democracy,  as  In  the  first  French  republic,  or  as  in  Switzerland, 
with  its  referendum." 

The  usage  of  English  speaking  peoples  fully  justifies  the  definition,  for 
the  Greek  democracies,  where  the  people  made  the  laws,  and  even  sat 
"en  masse"  to  exercise  the  judicial  function,  are  everywhere  spoken  of  as 


THi;    T.MTIATIVK    AXD    REFERENDUM.  385 

25.  Thus  all  objections  utterly  fail,  and  tlie  mighty  array 
of  positive  arginneuts  is  left  Avithont  a  breach.  To  pass  the 
main  points  in  brief  review : 

The  referendnni  will  abolish  monopoly  in  lawmaking,  make 
plutocracy  impossible,  establish  a  real  government  by  the 
voters,  opeai  the  way  to  new  reforms,  bar  the  path  of  fraud, 
rout  the  lobby,  weaken  the  corrupting  ]X>wer  of  wealth  and 
monopoly,  keep  the  representative  to  his  duty,  rebuke  parti- 
sanship, make  geiTymandering  useless  and  a  deadlock  impos- 
sible, discourage  favoritism,  extravagance  and  legislative 
theft,  lower  taxation,  cut  down  exoi'bitant  salaries  and  in 
every  way  conduce  to  an  economical  administration  of  public 
affairs,  decentralize  power,  simplify  elections  and  the  law,  stop 
the  killing  or  shehang  of  bills  in  committees  and  the  passage 
or  introduction  of  blackmailing  acts,  save  much  of  the  time 
now  wasted  in  i>ai'ty  disputes,  jx^reonal  politics  and  angrv  de- 
bate, favor  stability  and  cai*eful  legislation,  disclose  the 
strength  of  malcontents  and  affoi-d  a  safety  valve  to  dis- 
content, elevate  the  press,  educate  the  people  intellectually 
and  emotionally,  develop  their  reason,  sense,  dignity  and  pa- 
triotism, make  the  public  welfare  hinge  directly  on  the  moral- 
ity and  intelligence  of  the  masses  and  bring  the  best  men  to 
the  front  as  their  leaders.^ 

Experience,  reason  and  the  drift  of  public  sentiment  com- 
bine to  emphasize  the  value  and  importance  of  the  referen- 
dum, and  after  all  it  is  simply  the  putting  in  practice  of  the 
American  idea  of  the  sovereignty  of  the  people.  The  federal 
constitution  begins  "We,  the  people,  do  ordain  and  establish." 

republics.  Webster's  dictionary  calls  them  republics.  And  Switzerland, 
the  land  of  the  referendum,  is  known  the  world  over  as  the  "model  re- 
public." 

In  South  Dakota  and  Oregon,  where  direct  legislative  amendments  have 
been  passed  (and  in  S.  Dakota  adopted)  there  has  been  no  claim  of  uncon- 
stitutionality by  the  opponents  of  the  measure. 

If  Direct  Legislation  was  unconstitutional,  it  would  not  prove  anything 
except  the  necessity  of  amending  the  constitution. 

For  a  fuller  treatment  of  this  objection,  see  my  chapter  on  Objections  in 
Senate  Document,  340,  55th  Congress,  second  session,  July  8,  1898,  pp.  146,8. 

'  Nomination  by  direct  ballot  or  petition  of  the  people,  instead  of  nomina- 
tion by  part.v  caucus  or  convention,  will  help  to  malce  public  spirit  and 
fitness  for  office  the  vital  elements  in  the  selection  of  candidates  instead 
of  particular  service  and  corporate  or  factional  allegiance.  The  separation 
of  state  and  municipal  elections  by  some  .weeks  or  months,  and  insistance 
on  electing  local  officers  on  local  i.ssues  and  not  upon  national  issues  will 
also  aid  in  the  due  subjection  of  part.v.  Ever.vthing  tliat  tends  to  over- 
conn-  tl)e  ri'le  of  blind  unthinking  partisanship  ought  to  be  welcomed  by 
all    tri'c-lM'artcd    public   spii''tcd   citizens. 


386  THE  END  OF  CORRUPT  LEGISLATION. 

The  first  clause  of  Jefferson's  formula  for  democracy  is,  "The 
people  to  be  the  only  source  of  legislation."  Napoleon's  eagle 
Vision  caught  the  truth  when  he  said:  "Free  nations  have 
never  allowed  the  direct  exercise  of  their  sovereign  power  to 
be  taken  from  them.  This  new  invention  of  the  representa- 
tive system  destroys  the  essential  base  of  a  republican  com- 
monwealth." May  the  time  soon  come  when  we  shall  make 
good  our  loss,  and  the  budding  flower  of  liberty  shall  bloom  in 
full  perfection! 

Let  us  work  for 
Direct  legislation  by  the  people. 
Direct  nominations  by  the  people. 
Direct  and  immediate  recall  of  recreant  officers  by  the  people. 

i.  e.    , 
Instruction,  veto, 
selection,  discharge 
by  the  sovereign  people. 


Chapter  III.  . 

HOME  RULE  FOR  CITIES. 

THE    BONDAGE    OF   CITIES    MUST    CEASE. 

Our  law  classes  cities  with  women  as  having  no  right  to  self- 
government — a  fact  which  may  be  regarded  as  affording  legal 
grounds  for  the  custom  of  calling  a  city  "she."  A  few  illus- 
trations will  show  how  absolutely  cities  and  towns  are  sub- 
jected to  the  control  of  the  state  legislature. 

1.  One  of  the  strongest  illustrations  of  the  severe  State 
paternalism  to  which  our  cities  are  subject  is  the  fact  that  a 
city  of  half  a  million  people  cannot  connect  two  of  its  own 
public  buildings  with  an  electric  wire,  the  city  being  unable 
to  obtain  legislative  permission  against  the  opposition  of  the 
electric  companies.  Boston  is  the  city  of  which  I  am  speak- 
ing. A  little  while  ago  she  wished  to  run  a  wire  from  the 
City  Hall  to  the  Old  Court  Hous«,  either  over  or  under  the 
little  back  street  50  or  60  feet  wide  that  lies  between  the  two 
buildings.  The  object  was  to  enable  the  city  to  light  the  Old 
Court  House  from  the  dynamo  in  City  Hall.  A  bill  was  in- 
troduced for  the  purpose,  accompanied  by  petition  of  the 
mayor  of  Boston  (House  Bill  'No.  747,  1898),  but  the  electric 
companies  did  not  wish  municipalities  to  uso  a  dynamo  in  a 
public  building  to  operate  lights  outside  of  the  building,  and 
the  Legislature  refused  to  pass  the  bill,  and  Boston  cannot  run 
a  wire  between  two  of  her  own  buildings  over  or  under  her 
own  street. 

A  municipality  has  nO'  independent  initiative  of  its  own,  and 
it  is  the  only  human  thing  in  America  that  hasn't  got  it.  The 
nation  has  a  right  of  independent  initiative  in  national  affairs, 
the  state  in  state  affairs  and  the  individual  in  individual  affairs, 
but  the  municipality  must  have  permission  from  the  legis- 
lature for  everything  it  does.*     If  Portland  wants  to  establish 

^  It  is  bad  enough  to  hold  life  as  a  tenant  at  will,  but  even  that  might 
be  endurable  if  the  city  were  allowed  to  have  the  attributes  of  a  living  being 
while  entrusted  with  existence.  But,  to  have  no  power  of  self  activity;  to 
be  required  to  get  permission  to  move!— that  is  unl>earable. 

^87 


388  THE   BONDAGE   OF   CITIES 

a  gas  plant,  she  must  consult  witn  Augusta,  and  Bangor  and 
Dickejville,  and  all  the  other  Downs  and  cities  in  the  state, 
and  get  the  consent  of  their  representatives  in  the  legislature. 
If  Salem,  learning  of  the  great  success  of  municipal  telephone 
exchanges  in  other  countries,  de8ii*es  to  build  such  a  system 
for  herself,  she  must  ask  authority  of  a  lot  of  men  from  Bos- 
ton, Worcester,  Springfield,  OsterA'ille,  Lenox,  etc.,  who 
mostly  know  nothing  about  Salem,  or  municipal  telephones 
and  are  much  more  apt  to  feel  an  interest  in  the  Bell  Tele- 
phone Company  than  in  a  municipal  exchange  in  Salem. 
When  Syracuse  wants  to  build  an  electric  light  plant,  or  a  sub- 
way, she  must  ask  permission  from  a  body  of  men  representing 
Albany,  Buffalo,  Rochester,  ISTew  York,  Brooklyn,  Birming- 
ham, Rynex's  Comei-s,  Smith's  Mills,  Phillips  Creek,  Pool- 
ville,  and  all  the  other  3,000  cities  and  towns  of  the  state,  and 
representing  also,  even  more  accurately  perhaps,  a  large  num- 
bea*  of  powerful  corporations,  whose  interest  it  is  to  do  all  in 
their  ix>wer  to  prevent  Syracuse  or  any  other  city  or  toAvn 
from  establishing  a  municipal  lighting  plant,  or  taking  any 
steps  in  the  direction  of  a  municipal  street  railway.  Such 
undertakings  are  clearly  beyond  the  individual  sphere.  Each 
individual  cannot  build  a  street  railway,  or  a  tele|)hone  system 
for  himself.  And  they  are  not  state  interests.  Albany  and 
Buffalo  have  nothing  like  a  common  interest  with  Rochester 
in  the  water,  gas,  ele^'tric  light,  or  telephone  system  of  Roches- 
ter, and  should  have  nothing  like  equal  powers  of  decision  in 
respect  to  the  Rochester  gas  works,  or  telephone  plant;  yet, 
under  the  present  system,  Buffalo  and  Albany  have  more  to 
say  as  to  what  shall  be  done  mth  Rochester  telephones  and 
gas  pipes  than  Rochester  herself.  Yet  the  interest  is  dis- 
tinctly local,  and  the  final  power  of  decision  and  right  of  con- 
trol should  be  local,  subject  only  to  broad  genei'al  pro- 
visions, to  give  the  j^eople  a  firm  grasp  of  the  city  government, 
and  secure  deliberation,  harmony  and  just  dealing. 

2.  The  legislature  has  such  power  over  municipalities  that 
it  can  plan  and  construct  the  public  buildings  of  a  city  without 
reference  to  the  wishes  of  the  citizens,  and  then  compel  them 
to  pay  for  the  work.     In  1 870,  the  legislature  of  Pennsylvania 


TO    POLITICIAKS    AND    MONOPOLISTS    MUST    CEASE.  389 

arrived  at  the  conclusion  that  Philadelphia  should  have  a  new 
city  hall;  so  it  passed  an  act  to  that  effect,  naming  certain  gen- 
tlemen as  commissioners  to  erect  the  building,  with  absolute 
power  to  create  debts  for  that  purpose,  and  require  the  levy  of 
taxes  on  the  city  for  their  payment.  The  act  was  held  consti- 
tiitional,^  and  for  about  a  quarter  of  a  century  the  people  of 
Philadelphia  have  been  paying  enormous  sums,  millions  more 
than  the  buildings  were  fairly  worth,  for  work  they  did  not  au- 
thorize, and  over  which  they  have  had  no  control,  altho  it  con- 
sisted simply  of  the  construction  of  municipal  buildings  for 
their  own  city — a  remarkable  example  of  the  intense  patern- 
alism (to  use  the  mildest  word  that  suggests  itself) .  to  which 
the  law  subjects  municipalities.  It  would  be  deemed  a  very 
strange  thing  for  the  legislature  to  say  to  an  individual  citizen : 
"Mr.  Smith,  your  old  brick  house  is  getting  a  trifle  small  for 
"you  and  your  servants,  and  isn't  very  handsome  anyway;  you 
"are  able  to  build  a  palatial  marble  dwelling,  and  I  guess  we'd 
"better  have  it  done.  I'll  plan  the  thing,  and  see  it  con- 
"structed  to  suit  my  taste,  and  you  can  pay  for  it,  as  you  are 
"the  one  who  will  have  to  live  in  it."  The  courts  would  not 
allow  the  legislature  to  act  in  this  way  toward  a  single  indi- 
vidual, but  a  million  individuals  who  constitute  a  city  must  be 
left,  in  such  a  case,  entirely  at  the  legislative  mercy. 

3.  Another  proof  of  municipal  infancy  is  the  fact  that  tho 
legislature  may  compel  a  city  or  town  to  pay  a  claim  made 
against  it,  altho  such  claim  has  been  denied  by  the  courts  and 
may  have  no  foundatiou  in  law  or  justice.^  If  the  legisla- 
ture ordered  ^Ir.  Smith  to  pay  Mr.  Jones  the  amount  of  a 
claim  made  by  Jones  upon  Smith,  which  had  been  tried  in  the 
courts  and  rejected,  or  if  the  legislature  should  order  the 
Boston  &  Albany,  or  the  Pennsylvania  Railroad,  or  the 
Adams  Express  to  pay  such  a  claim,  the  courts  would  unhesi- 
tatingly declare  tlie  act  unconstitutional;  but  a  million  men 
in  a  public  corporation  have  almost  no  rights  which  the  legis- 
lature is  bound  to  respect. 

(')  Perkins  v.  Slack,  86  Pa.  270  (1878).  - 

(2)  13  N.  Y.  143.  If  the  claim  were  manifestly  without  any  foundation, 
legal  or  moral,  the  legislative  order  might  be  held  void  as  amounting  to  taxa- 
tion for  private  purposes  (see  64  N.  Y.  92,  99).  But,  if  the  baselessness  of  the 
claim  does  not  appear  clearly  on  the  face  of  the  facts  before  the  court,  the 
legislative  order  will  stand. 


390  MUNICIPAL  LIBEKTY. 

4.  It  is  held  that  the  legislature  may  take  city  water  works, 
or  gas  works,  or  other  municipal  properties  entirely  out  of  the 
hands  of  the  city,  and  give  the  management  of  them  to  state 
officers.^ 

6.  A  franchise  granted  by  the  legislature  to  a  city  or  town 
is  not  a  contract.  A  franchise  to  establish,  own  and  operate 
ferries,  water  works,  gas  works,  electric  plants,  street  railways, 
etc.,  is  a  franchise  if  granted  to  an  association  of  stockholders 
constituting  a  private  corporation,  and  is  protected  by  the 
Federal  Constitution,  but  is  not  a  franchise  if  granted  to  an 
association  of  individuals  constituting  a  city,  and  is  not  pro- 
tected by  the  constitution,  or  anything  else,  but  may  be  taken 
without  compensation  at  the  pleasure  of  the  legislature.^ 

6.  The  charter  of  a  private  corporation  is  held  to  be  a  con- 
tract within  the  constitution,  but  the  charter  of  a  public  cor- 
poration is  not.  Municipal  corporations  are  creatures  of  the 
legislature.  They  have  only  such  powei"s  as  may  be  given  to 
them  by  the  legislature,  which  may,  at  its  pleasure,  alter, 
abridge  or  annul  tlieir  powers  and  privileges,  divide  them,  or 
consolidate  two  or  more  of  them  into  one  without  their  assent, 
attach  a  condition  to  their  continued  existence,  or  abolish  them 
completely.^  Imagine  Congress  passing  an  act  to  annex 
Rhode  Island  to  Connecticut,  or  divide  New  York  state,  or 
declare  that  Illinois  shall  no  longer  be  a  state!  Yet  such  an 
act  enforced  without  the  assent  of  the  states  affected  would  be 
an  apt  parallel  to  the  arbitrary  powers  possessed  and  exercised 
by  many  of  our  legislatures  in  respect  to  cities. 

These  illustrations  of  municipal  dependence  seem  sufficient 
to  justify  the  conclusion  that  our  cities  are  in  bondage — sub- 


0)  44  Oh.  St.  348;  7  Houst.  (Del.)  44;  some  courts  hold  otherwise-see 
below. 

O  East  Hartford  v.  Hartford  Bridge  Co.,  10  H<«w.  (U.  S.)  511.  Legisla- 
tive act  taking  away  the  Hartford  ferry  Justified  on  the  broad  ground  that 
the  grant  of  a  franchise  to  a  municipality  is  not  a  contract.  See  also  77  Va. 
214,  and  compare  10  Barb.  (N.  Y.)  223. 

e)  See  102  U.  S.  472,  511:  93  U.  S.  266;  4  Wheat.  518;  74  N.  Y.  161.  166; 
51?*^D-"o5*^  Dillon's  famous  legal  text  book  on  Municipal  Corporations,  S854, 
64,  8o,  89.— the  highest  authority  on  the  subject. 

A  municipality  Is  not  only  a  creature  of  enumerated  powers,  but  those 
powers  are  for  the  most  part  strictly  construed.  It  is  held  that  a  municipal 
corporation  can  exercise  no  powers  except  those  granted  to  it  in  express 
words,  or  necessarily  or  fairly  implied  in  or  incident  to  the  powers  ex- 
pressed, or  indispensable  to  the  declared  objects  and  purposes  of  the  cor- 
poration, and  "any  reasonable  doubt  concerning  the  existence  of  the  power 
Is  resolved  b.v  the  courts  against  the  municipal  corporation,  and  the  power 
IB  denied."     Von  Schmidt  v.  Widber,  105  Cal.  151,  157. 


LOCAL  GOVERNMENT  BY  THE  LOCAL  PEOPLE.       391 

ject  to  external  control  in  regard  to  matters  which  they  ought 
to  have  a  right  to  decide  for  themselves.  A  state  legislature 
has  no  more  right  to  impose  its  judgment  ufion  a  city  in  respect 
to  the  local  business  affairs  of  that  city  than  the  Federal  Gov- 
ernment has  to  impose  its  judgment  upon  a  particular  state  in 
regard  to  the  local  affairs  of  that  state.  There  is  no  more 
sense  or  justice  in  requiring  Baltimore  to  consult  all  the  cities 
and  towns  of  the  state  as  to  what  she  shall  do  ^vith  her  street 
railways  than  there  would  be  in  requiring  Mrs.  Deland  to  con- 
sult all  the  women  in  Boston  and  get  permission  before  she 
puts  new  paper  on  her  hallways,  or  makes  any  other  change 
in  her  housekeeping. 

THE  REASONS  FOR  ALL  THIS. 

The  reason  sometimes  given  for  the  legislative  power  of 
strangling  a  municipality  is  that  it  was  created  by  the  legisla- 
ture, and  as  the  breath  of  life  was  breathed  into  it  by  the  state 
authorities  they  have  the  right  to  withdraw  the  said  breath  at 
their  pleasure.  On  similar  grounds  a  parent  would  have  a 
right  to  murder  his  child,  and  we  should  go  back  to  the 
Roman  plan  of  placing  the  power  of  life  and  death  in  the  head 
of  the  family.  ^loreover,  private  corporations,  as  well  as 
public,  are  created  by  the  legislature  and  if  creation  confers 
a  right  of  limitless  modification  even  to  dissolution  in  the  one 
case,  why  not  in  the  other?  Finally,  cities  and  towns  are  not 
created  by  the  legislature.  They  may  exist  and  frequently 
have  existed  without  any  legislature,  and  before  there  was  any 
legislature.  Their  existence  gives  them  the  right  of  local 
self  government.  People  living  together  in  the  same  locality 
have  a  right  to  associate  themselves  for  the  accomplishment  of 
common  purposes,  and  to  control  their  local  affairs  without 
dictation  from  distant  cities  and  without  permission  from  any 
legislature.  The  legislature  may  use  cities  and  towns  to  ac- 
complish state  purposes,  and  in  that  relation  may  properly 
mold  their  governments  and  functions;  but  it  has  no  more 
right  to  deprive  them  of  freedom  and  self  control  in  local  mat- 
ters than  congress  has  to  deprive  a  state  of  its  freedom  and 
self  control  in  internal  concerns. 


,*{92  THE    CITY    FOR    THE    I'EOl'LE. 

The  real  reason  for  the  present  state  of  municipal  law 
appears  to  be  a  failure  of  the  law  so  far  to  embody  in  its  phil- 
osophy, with  sufficient  fullness  and  jwecision,  the  fundamental 
distinction  between  the  functions  of  cities  and  towns  as  state 
agencies  for  enforcing  state  laws,  and  their  functions  as  local 
business  concerns.  When  the  principles  of  the  Common  Law 
were  crystalizing,  the  functions  of  municipalities  were  almost 
entirely  confined  to  the  first  class,  and  the  doctrine  naturally 
grew  up  that  municipalities  were  merely  ci'eatures  of  the  state, 
doing  a  part  of  the  state's  work,  and  subject  entirely  to  the 
state's  orders — a  doctaine  fairly  reasonable  as  long  as  muni- 
cipal functions  were  confined  to  keeping  order,  administering 
justice,  attending  to  education  and  other  state  interests,  but 
wholly  inappropriate  in  reference  to  the  oAvnership  and  man- 
agement of  water  works,  gas  works,  electric  light  works,  street 
railway  systems,  lodging  houses,  wharves,  ferries,  printing 
establishments,  telephone  exchanges,  baths,  and  other  local 
business  enterprises  that  have  crept  into  the  municipal  field. 
The  precedent-loving  law  has  clung  to  the  rule  of  former 
times,  bending  a  little  in  the  strong  hands  of  two  or  three 
liberal  courts,  but  with  no  due  regard  as  a  rule  for  the  modi- 
fication required  by  the  changes  of  modem  life. 

We  may  set  it  down  as  a  reasonably  certain  conclusion,  I 
think,  that  the  sweeping  subjection  of  cities  to  legislative 
authority  that  characterizes  our  law  appears  to  arise  from 
the  failure  to  disting-uish  between  the  two  spheres  of  municipal 
activity.  So  far  as  the  municipality  is  an  agent  of  the  state 
to  carry  out  state  policy  in  respect  to  state  interests,  such  as 
education,  order,  administration  of  justice,  protection  from 
disease,  etc.,  large  control  by  the  legislature  is  right;  but  so 
far  as  the  municipality  is  a  local  co-operative  business 
concern,  the  legislature  should  have  no  more  power  over  it 
than  it  has  over  any  other  individuals  or  cor|X)rations  engaged 
in  similar  business. 

LIMITATIOIfS  ox  THE  LEGISLATURE. 

In  spite  of  the  law's  rigidity,  and  the  powerful  trend  in  the 
past  toward  state  absolutism  in  municipal  affairs,  some  notches 
have  been  cut  in  this  legislative  omnipotence. 


HOME    lULE    FOR    OUK    CITIES.  393 

1.  Taxation  must  be  for  a  public  purpose,  and  one  that  per- 
tains to  tlie  district  taxed. 

2.  The  legislature  cannot  deprive  a  city  of  the  use  of  its 
private  property,  such  as  water  works,  g-as  plants,  etc.  Even 
if  a  city  or  town  is  abolished,  such  property  rights  are  not  de- 
stroyed but  go  to  the  state  in  trust  for  the  inhabitants  of  the 
municipal  area.  The  management  of  the  property  may  be 
taken  aw^ay,  but  not  the  use  of  it. 

3.  A  few  courts  hold  that  the  legislature  cannot  take  away 
the  management  of  "private"  property  from  the  municipality, 
there  being  an  inherent  right  to  local  management  and  control 
of  local  business,  and  local  selection  of  the  officers  who  are  to 
administer  such  business. 

Inherent  Right  of  Local  Self-government. 

In  People  v.  Hurlbut,  24  Mich.  44  (1871).  Chief  Justice  Campbell 
and  Justices  Cooley  and  Christiancy  held  that  the  legislature  could 
not  appoint  a  board  of  public  works  to  control  the  public  buildings, 
pavements,  sewers,  water  works,  engine  houses,  etc.,  in  the  city  of 
Detroit,  altho  no  express  provision  of  the  constitution  negatived 
the  act.  The  court  held  that  there  is  "a  clear  distinction  between 
"what  concerns  the  state  and  that  which  does  not  concern  more 
"than  one  locality." 

A  municipal  government  has  two  sets  of  functions.  It  is  a  state 
agency  to  attend  to  state  affairs  in  its  locality,  and  it  is  a  municipal 
agency  to  attend  to  business  of  a  local  nature,  such  as  vpater  works, 
fire  service,  etc.  In  its  sphere  of  state  agency,  the  legislature  may 
control  it  except  where  express  constitutional  provisions  may  inter- 
vene. But  the  people  of  a  city  or  town  have  a  right  to  the  manage- 
ment of  their  local  concerns,  and  the  selection  of  their  local  officers 
w^ho  are  to  control  such  concerns,  and  this  right  cannot  be  taken 
from  them  by  the  legislature,  for  it  rests  upon  the  principle  of 
self-government,  which  is  inherent  in  free  institutions,  and  un- 
derlies the  constitution  as  the  purpose  for  w^hich  the  constitution 
was  established. 

Chief  Justice  Campbell  and  Justices  Cooley  and  Christiancy  gave 
the  matter  great  consideration  and  rendered  separate  opinions  all 
based  upon  the  principle  that  local  self-government  of  local  affairs 
is  an  essential  part  of  our  system.  "The  history  of  the  country 
"and  the  nature  of  our  institutions"  show  "the  vital  importance 
"which  in  all  the  states  has  so  long  been  attached  to  local  muni- 
"cipal  governments  by  the  people  of  such  localities,  and  their  rights 
"of  self-government." 

Chief  Justice  Campbell  distinguishes  People  v.  Mahaney,  13  Mich. 
492,  where  the  validity  of  an  act  establishing  state  control  of  city 


394  THE   BONDAGE   OF   CITIES 

police  is  sustained,  saying  the  question  was  "whether  the  police 
"board  is  a  state  or  municipal  agency,"  and  added,  "I  think  it  is 

"clearly  an  agency  of  the  state  government There  is  a 

"clear  distinction  in  principle  between  what  concerns  the  state  and 

"that  which  does  not  concern  more  than  one  locality There 

"is  no  dispute  concerning  the  character  of  the  public  works  act. 
"Its  purposes  are  directly  and  evidently  local  and  municipal."  He 
decided  that  the  municipality  could  not  be  deprived  of  the  right 
to  choose  the  men  who  should  manage  its  public  works.  "Our  con- 
"stitutlon,"  he  said,   "cannot  be .  understood  or  carried  out  at  all, 

"except  on  the  theory  of  local  self-government The 

"confusion  existing  on  this  subject  has  arisen  from  the  custom 
"prevalent  under  all  free  governments  of  localizing  all  matters  of 
"public  management  as  far  as  possible,  and  of  making  use  of  local 
"corporate  agencies  whenever  it  can  be  done  profitably,  not  only 
"in  local  government,  but  also  for  purposes  of  state."  (pp.  81,  84, 
89.) 

Judge  Cooley  made  an  extensive  review  of  the  pertinent,  historic 
facts  and  general  principles,  and  concluded  against  the  "legislative 
"power  to  appoint  for  mimicipalities  the  officers  who  are  to  manage 
"the  property,  interests  and  rights  in  which  their  own  people  are 
"alone  concerned.  The  municipality  as  an  agent  of  government,  is 
"one  thing;  the  corporation  as  an  owner  of  property  is,  in  some 
"particulars,  to  be  regarded  in  a  very  different  light.  .  .  In  the 
"case  before  us,  the  offices  in  question  involve  the  custody,  care, 
"management  and  control  of  the  pavements,  sewers,  water  works, 
"and  public  buildings  of  the  city,  and  the  duties  are  purely  local. 
"The  state  at  large  may  have  an  interest  in  an  intelligent,  honest, 
"upright,  and  prompt  discharge  of  them,  but  this  is  on  commercial 
"and  neighborhood  grounds,  rather  than  political."  (pp.  103,  104, 
105.) 

In  Board  of  Park  Commissioners  v.  Detroit,  28  Mich.  228  (1873), 
where  the  legislature  appointed  state  officers  to  buy  land  and  im- 
prove it  for  a  park  for,  and  at  the  expense  of,  the  city  of  Detroit, 
Judge  Cooley  said:  "We  affirm  that  the  city  of  Detroit  has  the 
"right  to  decide  for  itself  upon  the  purchase  of  a  public  park.  .  .  . 
"It  is  as  easy  to  justify,  on  principle,  a  law  which  permits  the  rest 
"of  the  community  to  dictate  to  an  individual  what  he  shall  eat, 
"and  what  he  shall  drink,  and  what  he  shall  wear,  as  to  show  any 
"constitutional  basis  for  one  under  which  the  people  of  other  parts 
"of  the  state  dictate  to  the  city  of  Detroit  what  fountains  shall  be 
"erected  at  its  expense  for  the  use  of  its  citizens,  or  at  what  cost 
"it  shall  purchase,  and  how  it  shall  improve  and  embellish,  a  park 
"or  boulevard  for  the  recreation  and  enjoyment  of  its  citizens." 
(pp.  241,  242.) 

A  passage  from  the  opinion  of  the  same  judge  in  the  former  case, 
24  Mich,  at  97,  is  interesting  in  connection  with  the  last  quotation. 
"The  doctrine,"  says  the  learned  judge,  "that  within  any  general 
"grant  of  legislative  power  by  the  constitution  there  can  be  found 


TO    POLITICIANS    A>D    .MONOPOLISTS    MUST    CEASE.  ii95 

"authority  thus  to  take  from  the  people  the  management  of  their 
"local  concerns,  and  the  choice  directly,  or  indirectly,  of  their  local 
"oflBcers,  if  practically  asserted,  would  be  somewhat  startling  to  our 
"people,  and  would  be  likely  to  lead  hereafter  to  a  more  careful 
"scrutiny  of  the  charters  of  government  framed  by  them  lest  some- 
"time,  by  an  inadvertent  use  of  words,  they  might  be  found  to  have 
"conferred  upon  some  agency  of  their  own,  the  legal  authoritj'  to 
"take  away  their  liberties  altogether." 

The  Michigan  constitution  says,  Art.  XV,  §14,  that  "judicial 
"oflficers  of  cities  and  villages  shall  be  elected,  and  all  other  officers 
"shall  be  elected  or  appointed,  at  such  time  and  in  such  manner, 
"as  the  legislature  may  direct,"  but  the  Michigan  judges  hold  that 
in  the  light  of  history,  and  fundamental  principle,  the  election  or 
appointment  of  municipal  officers  proper  must  be  by  local  authority 
in  such  time  and  manner  as  the  legislature  may  direct. 

In  State  v.  Dennj',  118  Ind.  382  (1888),  an  act  creating  a  board  of 
public  works  to  be  appointed  by  the  legislature,  and  to  have  con- 
trol over  streets,  alleys,  sewers,  water  works  and  lights,  was  held 
invalid  as  infringing  the  right  of  local  self-government  inherent  in 
municipal  corporations  under  our  system  of  free  institutions.  The 
right  of  local  self-government  ante-dated  the  constitution,  and  was 
not  surrendered  by  it.  Judge  Coffej^  citing  Cooley  on  Constitu- 
tional Limitations,  5th  ed.,  page  208,  says: 

"It  does  not  follow  that  in  every  case  the  courts,  before  they 
"can  set  aside  a  law  as  invalid,  miist  be  able  to  find  in  the  consti- 

"tution  some  specific  inhibition  which  has  been  disregarded 

"If  the  authority  to  do  an  act  has  not  been  granted  by  the  sover- 
"eign  to  its  representatives,  it  cannot  be  necessary  to  prohibit  its 
"being  done"  (pp.  394-395).  The  Court  continues:  "The  constitu- 
"tion  must  be  considered  in  the  light  of  the  local  and  state  govern- 

"ments  existing  at  the  time  of  its  adoption The  principles 

"of  local  self-government  constitute  a  prominent  feature  in  both 
"the  federal  and  state  governments.  ...  It  existed  before  the 
"creation  of  anj'  of  our  constitutions,  national  or  state,  and  all  of 
"them  must  be  deemed   to  have   been  formed   in   reference  to   it, 

"whether  expressly  recognized  in  them  or  not The  object 

"of  granting  to  the  people  of  a  city  municipal  powers  is  to  give 
"them  additional  rights  and  powers  to  better  enable  them  to  govern 
"themselves,  and  not  to  take  away  any  rights  they  possessed  before 
"such  grant  was  made.  It  maj^  be  true  that  as  to  such  matters  as 
"the  state  has  a  peculiar  interest  in,  differing  from  that  relating 
"to  other  communities,  it  may,  by  proper  legislative  action,  take 
"control  of  such  interests;  but,  as  to  such  matters  as  are  purely 
"local,  and  concern  onlj-  the  people  of  that  community,  they  have 
"the  right  to  control  them  subject  only  to  the  general  laws  of  the 
"state,  which  affect  all  the  people  of  the  state  alike.  The  construc- 
"tion  of  sewers  in  a  city,  the  supply  of  gas,  water,  fire  protection, 
"and  many  other  matters  that  might  be  mentioned,  are  matters  in 
"which  the  local  communitj'  alone  are  concerned,  and  in  which  the 


396  MUNICIPAL  LIBERTY. 

"state  has  no  special  interest  more  than  it  has  in  the  health  and 
"prosperity  of  the  people  generally,  and  they  are  matters  over 
"which  the  people  affected  thereby  have  the  exclusive  control,  and 
"it  cannot,  in  our  opinion,  be  taken  away  from  them  by  the  legis- 
"lature." 

In  Evansville  v.  State,  118  Ind.  426  (1888),  it  was  held  that  an 
act  placing  the  police  and  fire  departments  of  certain  cities,  and 
the  pi'operty  connected  therewith,  under  the  exclusive  control  of 
State  commissioners  was  void  as  a  denial  of  the  right  of  local  self- 
government.  The  court  says  that  securing  an  efficient  police 
department  is  a  State  purpose,  but  the  remainder  of  the  act  affected 
purely  local  concerns  (p.  437). 

This  Michigan  doctrine  of  the  inherent  right  of  local  selec- 
tion of  officers  and  management  of  property  guarantees  self- 
government  within  the  sphere  of  local  business  permitted  by 
the  charter,  but  the  charter  itself  is  subject  to  limitation  or  re- 
peal at  the  will  of  the  legislature,  and  there  is  at  best  no  power 
of  initiating  a  business  or  policy  beyond  the  foreordained  enu- 
merations and  permissions  of  the  charter.  Moreover,  the 
courts  that  take  this  position  are  few.  The  great  majority 
hold,  with  Ohio  and  Delaware,  that  the  legislature  may  take 
city  property  out  of  the  hands  of  the  city,  and  give  its  control 
to  state  officials.^ 


0)  The  reasoning  by  which  this  course  is  sustained  is  well  expressed  in 
148  Mass.  375,  at  383-6.  "It  is  suggested,  tho  not  much  insisted  on,  that  the 
statute  of  1885,  c.  323,  is  unconstitutional,  because  it  takes  from  the  city 
the  power  of  self-government  in  matters  of  internal  policy.  We  find  no 
provision  In  the  constitution  with  which  it  conflicts,  and  we  cannot  declare 
an  act  of  the  legislature  invalid  because  it  abridges  the  exercise  of  the 
privilege  of  local  self-government  in  a  particular  in  regard  to  which  such 
privilege  is  not  guaranteed  by  any  provision  of  the  constitution." 

The  court  then  referred  to  constitutional  provisions  to  malje  "wholesome 
regulations,"  etc.,  and  to  "erect  municipalities"  and  "grant  powers,"  etc. 
The  constitution  did  not  say  the  legislature  could  take  away  powers  once 
granted,  but  this  was  held  to  be  the  case  by  the  court  which  continued  as 
follows: 

"Under  these  provisions,"  as  is  said  by  C.  J.  Chapman:  'There  can  be  no 
doubt  that  the  power  to  create,  change  and  destroy  municipal  corporations  is 
In  the  legislature.  This  powir  has  been  so  long  and  so  frequently  exercised  upon 
counties,  towns  and  school  districts,  in  dividing  them,  altering  their  boundary 
lines,  increasing  and  diminishing  their  powers,  and  in  abolishing  some  of 
them,  that  no  authorities  need  bo  cited  on  this  point.  The  constitution  does 
not  establish  these  corporations,  but  vests  in  the  legislature  a  general  juris- 
diction over  the  subject  by  its  grant  of  power  to  make  wholesome  laws,  as  it 
shall  judge  to  be  for  the  general  good  and  welfare  of  the  commonwealth.' 
It  'may  amend  these  charters,  enlarge  or  diminish  their  powers,  extend  or 
limit  their  boundaries,  consolidate  two  or  more  into  one,  and  abolish  them 
altogether,  at  its  own  discretion.'  " 

"We  have  no  doubt  that  the  legislature  has  the  right  in  its  discretion  to 

change  the  powers  and  duties  created  by  itself,  and  to  vest  such  powers  and 

duties  in  ofllcers  appointed  by  the  governor,     *     ♦     *     instead  of  leaving 

'such  officers  to  be  elected  by   the   people,   or  appointed  by   the   municipal 

"authorities." 

'The  law  under  consideration  in  this  case  established  a  state  police  for 
Boston,  and  so  was  not  within  the  limits  of  the  Michigan  and  Indiana 
aeclsions,  but  the  reason  covered  the  whole  field,  and  is  often  referred  to  as 
authority  against  the  Michigan  doctrine. 


LOCxiL   GOVERNMENT   BY  THE   LOCAL    PEOPLE,  397 

4.  In  some  states,  constitutional  provisions  liave  been 
adopted  secnnng  more  or  less  municipal  freedom  as  a  right; 
and,  as  a  matter  of  fact  our  legislatures  accord  municipalities 
a  considerable  degree  of  self-control,  tho  only  as  a  courtesy, 
subject  to  recall  at  the  pleasure  of  the  legislature  except  where 
the  Michigan  Doctrine  or  the  constitutional  provisions  just 
mentioned  interfere  with  State  absolutism.  (See  diagrams 
below,  Tables  I  and  II.) 

THE  GENERAL  SITUATION. 

Summing  up  the  situation  it  appears  to  be  as  follows: 

1.  Cities  have  no  independent  initiative  of  their  own.  They 
belong  to  the  dependent  and  defective  classes. 

2.  They  have  as  a  rule  no  recognized  right  to  choose  their 
own  officers. 

3.  They  have  as  a  rule  no  recognized  right  to  control  and 
manage  their  own  property. 

4.  They  have  no  recognized  right  to  continued  existence — 
no  recognized  right  to  life,  liberty,  or  the  pursuit  of  happiness. 

5.  Neither  a  franchise  grant,  nor  the  charter  as  a  whole,  is 
regarded  as  a  contract,  or  within  the  protection  of  the  Federal 
Constitution. 

6.  Cities  cannot  be  taxed  except  for  a  public  purpose,  and 
one  that  pertains  to  the  district  taxed. 

7.  The  people  in  the  municipal  area  have  a  right  to  the  use 
of  the  business  property  of  the  municipality,  and  j>erhaps  of 
its  public  property  also. 

8.  Some  courts  recognize  an  inherent  right  in  municipali- 
ties to  control  their  business  property  and  manage  their  local 
affairs,  and  elect  their  own  officers  to  exercise  such  control  and 
management. 

9.  In  fact,  considerable  local  self-control  exists  by  legisla- 
tive permission  as  a  revocable  courtesy. 

10.  In  some  states,  the  prevailing  rules  of  law  as  to  muni- 
cipal subjection  have  been  altered  by  constitutional  provisions, 
and  there  is  a  strong  movement  of  thought  in  favor  of  such 
modification.     (See  diagrams  and  explanation. ^ 


398  THE    CITY  ♦FOR    THE    PEOPLE. 

CONSEQUENCES  OF  MUNICIPAL  DEPENDENCE. 

Some  of  the  consequences  of  the  present  condition  of  muni- 
cipal law  are: — 

First.  A  chaotic  mass  of  legislation  and  decisions,  mighty 
in  bulk,  complexity  and  conflict  of  opinion,  but  weak  in  the 
definite  simplicity,  uniform  interpretation,  and  steady  har- 
mony with  fundamental  principles  that  characterize  the  per- 
fect law. 

Second.  An  eternal  running  to  the  legislature  for  special 
legislation.  Turning  to  a  pile  of  notes  on  special  laws,  the 
first  sheets  I  pick  up  contain  a  list  of  twenty  acts  passed  by 
the  Virginia  legislature  in  one  year  to  authorize  the  building 
of  whar\^es  by  persons  named  in  the  acts.  Here  are  a  few 
specimens.     They  are  all  substantially  alike. 

Major  W.  Pilchard  to  erect  a  wharf  at  Greenbackville. 

C.  W.  Warner  allowed  to  erect  a  wharf. 

Tomlin  Braxton  to  erect  a  wharf  in  King"  William. 

R.  H.  Atkerson  to  erect  a  wharf  on  Chuckatuck  Creek,  etc. 

Taking  another  random  handful  of  paj^ers,  I  find  a  mass  of 
local  laws  enacted  in  Mass.  in  1896,  '97  and  '98.  Look  in  the 
index  of  any  Mass.  blue  book  under  the  titles  "Cities"  and 
"Towns"  and  j^ou  Avill  find  materials  enough  for  a  lengthy  ser- 
mon on  special  legislation.  In  1896,  there  were  49  special 
acts  relating  to  street  railways  in  5  cities  and  44  towns,  and  25 
acts  about  water,  8  relating  to  cities  and  17  to  towns.  Those 
are  only  two  items.  In  1897,  there  were  130  entries  imder 
Cities,  only  7  of  them  general  laws.  In  1898  the.-e  were  255 
entries  under  "Cities"  and  "To^vns"  and  only  18  of  them  re- 
ferred to  general  laws.  A  considerable  number  of  the  special 
acts  relate  to  municipal  water  works,  and  another  large  group 
consist  of  acts  permitting  some  railway  to  lay  its  tracks  in  some 
town  or  city.  Here  are  a  few  examples  of  what  Mass.  can  do 
in  the  way  of  sjiecial  legislation : — 

Barre,  the  Barre  St.  Ry.  Co.  may  lay  its  tracks  and  operate  its 
railway  in, 

Belchertown  may  accept  a  certain  bequest. 

Berkley,  water  supply. 

Blar.dford,  the  Hudson  Bv.  &  B.  Rd.  Co.  may  construct  its  rail- 
road thru  .    (There  are  many  of  these  Rd   acts.) 


HOME    RULE    FOR    OUR    CITIES.  399 

North  Adams  hospital  may  establish  a  school  for  training  nurses. 

Beverly,  draw  in  Essex  bridge  may  be  relocated. 

Boston,  Aberdeen  street  may  be  laid  out  and  occupied  as  a  public 
highway. 

Boston  may  accept  legacy  of  John  L.  Eandidge. 

Boston  may  grant  a  pension  to  John  Rogers. 

Boston  may  pay  a  sum  of  money  to  widow  of  C.  L. 

Boston   may  relocate  Chilmark  street. 

Boston  may  pay  a  sum  of  money  to  widow  of  John  (several 

such  acts). 

Boston,  sale  of  old  public  library  building. 

Boston,  extension  of  Cove  street. 

Brockton,  name  of  Franklin  Meth.  Epis.  Chapel  changed  to  the 
Franklin  Meth.  Epis.  Church. 

Brockton,  Taunton  and  Brockton  St.  Ry.  may  operate  cars  in, 

Edgartown,  taking  of  eels  in  ojster  pond  in, 
water  supply  for. 

New  Bedford,  Board  of  Public  Works  of,  may  elect  a  clerk. 

Northfield,  a  bridge  to  be  constructed  in, 

Somerville,    appointment    of    certain    members    of    fire    depart- 
ment in, 

Springfield,  salary  of  justice  of  police  court  in, 

Wayland,  bridge  in  may  be  removed. 

Orange,  the  Orange  &  E.  Street  Railway  may  construct  its  rail- 
way in, 

These  are  from  '97.  A  few  from  the  long  lists  of  '98  will 
show  that  the  quality  is  abooit  the  same  from  year  to  year. 

Boston  may  pay  a  sum  of  monej'  to  (many  such  acts). 

Boston,  to  change  the  name  of  Penitent  Female  Refuge, 

Boston,  relative  to  Bennington  street  in, 

Boston,  widening  of  Rutherford  avenue. 

Boston,  relative  to  alleys  in, 

Boston  may  finish  the  construction  of  its  public  parks. 

Bourne,  the  Phmouth  &  Sandwich  St.  Ry.  Co.  may  construct  and 

operate  its  road  in   (many  such  acts), 
Chicopee,  filling  of  vacancies  in  board  of  aldermen. 
Falmouth,  water  supply  for  (a  number  of  such  laws), 
Salem,  appointment  of  assistant  assessors  in, 
Revere,  election  of  selectmen  in, 
Taunton,  custody  of  shade  trees  in. 

West  Newbury  may  appropriate  money  for  constructing  a  wharf. 
Windjir,  maj   construct  a  telephone  line  to  Dalton. 

No  wonder  Governor  Russell  advocated  an  enlargemput  nf 
the  powers  of  municipalities.  In  his  address  to  the  Masp. 
legislature,  Jan.  8,  1801,  pp.  24  to  26,  he  says: — 


400  THE    BONDAGE    OF    CITIES 

"Much  special  legislation  is  enacted  in  behalf  of  cities  and  towns 
"and  is  made  necessary  bj'^  their  limited  powers.  Twenty-three 
"cities  and  forty-one  towns  were  the  subjects  of  special  acts  at 
"the  last  legislature.  In  my  opinion,  greater  powers  can  be  given 
"to  cities  and  towns  with  safety  and  advantage,  not  only  as  a  relief 
"to  the  legislature,  but  as  a  just  and  proper  extension  of  local  self- 
"government."  Speaking  of  the  terms  and  conditions  on  which 
street  franchises  should  be  granted,  and  of  an  act  that  passed  the 
House  requiring  the  sale  at  auction  of  such  franchises,  he  says: 
"In  my  judgment,  each  community  is  best  fitted,  has  the  right  and 
"ought  to  have  the  jx)wer,  to  determine  this  question  for  itself;" 
and  he  recommended  the  passage  of  a  law  allowing  each  muni- 
cipality to  fix  the  terms  on  which  such  grants  should  be  made. 

In  his  address  of  January  7,  1892,  page  42,  he  again  recommends 
the  "extension  of  the  powers  of  cities  and  towns  and  of  local  self- 
"government,  especially  in  matters  of  taxation,  control  and  sale  of 
"franchises,  and  extending  the  limits  of  municipal  work  and  of 
"municipal    ownership." 

And  finally,  in  his  address  to  the  legislature,  January  5,  1893, 
page  12,  et  set).,  under  the  caption  "Right  of  Local  Self-Government 
in  Town  and  City,"  the  governor  said:  "The  right  of  self-go vern- 
"ment  is  an  axiom  of  our  political  system.  Wherever  this  right 
"can  be  exercised  directly  by  the  people  themselves,  such  exercise 
"should  be  carefully  conserved.  .  .  Due  regard  for  the  right  of 
"local  self-government  requires  not  only  non-interference  by  the 
"State  in  the  purely  local  afl'airs  of  cities  and  towns,  but  also  the 
"grant  to  them  of  greater  powers  in  order  that  there  may  be  the 
"most  successful  treatment  and  control  of  the  ever  increasing  prob- 
"lems  of  local  concern.  A  reference  to  the  acts  of  last  year  shows 
"that  nearly  one-third  of  its  four  hundred  and  forty  acts  were 
"special  laws  passed  on  the  application  of  twenty-five  cities  and 
"eighty-five  towns  [in  respect  to  little  local  matters],  and  there 
"were  also  eighty-seven  special  acts  relating  to  other  corporations," 
and  he  repeated  his  recomrrigndations  of  former  years  for  the  sake 
of  progress,  for  the  relief  of  the  legislature,  and  as  a  matter  of 
justice  and  right. 

The  Fassett  Committee  appointed  in  1890  by  the  ^ew  York 
Senate  to  investigate  municipal  government  in  that  state 
found  that  in  6  years,  1884  to  1889  inclusive,  the  'New  York 
l^slatiire  passed  1284  acts  relating  to  the  30  cities  of  the  state 
— 390  of  the  acts  affecting  the  city  of  New  York.  In  1886, 
280  ont  of  681  statutes  were  local  municipal  laws.  (See  Sen. 
Kep.  Fassett  Com,  1891,  Vol.  V,  p.  459.)  For  examples  of 
New  York  special  legislation,  see  Appendix  II,  S. 

In  Wisconsin  in  1895  the  General  Laws  occupied  a  volume 
of  812  pages  and  "City  Charters  and  their  Amendments" 
filled  a  second  volume  of  1360  pages.     As  specimens  of  some 


TO    POLITICIANS    AXB    MONOPOLISTS    MUST    CEASE.  401 

of  the  local  measures  that  absorb  the  attention  of  Wisconsin 
legislators,  we  may  name  an  act  providing  that  bath  houses 
may  be  maintained  at  Hicks  Lake,  and  an  act  to  amend  the 
charter  of  Milwaukee  in  respect  to  sprinkling  the  streets. 
In  the  Minnesota  statutes  of  the  last  session  (1897)  I  find: 

Cities  are  authorized  to  compromise  and  settle  claims. 
Empowered  to  repair  market  houses  and  city  property. 
Authorized  to  issue  bonds  for  water  works,  hospitals,  etc. 
Time  for  payment  of  local  improvement  assessments  extended. 
Empowered  to  prevent  fights,  disorderly  conduct,  etc. 
Empowered  to  change  abandoned  cemeteries  into  parks. 
Empowered  to  take  bequests  in  trust  for  public  libraries. 
Cities  over  50,000  authorized  to  buy  any  water  plant  or  combined 

water  and  light  plant  in  operation  in  such  city. 
Fire  limits  may  be  prescribed  by  Councils,  etc.,  etc. 

Think  of  it!  A  city  has  to  have  legislative  permission  lO 
compromise  and  settle  a  claim,  to  repair  its  own  property,  to 
change  its  o^vn  cemetery  into  a  park,  buy  a  water  or  light 
plant,  or  take  a  bequest  for  a  public  library!  jSTo  individual 
of  age  and  apparent  discretion,  nor  any  association  of  indi- 
viduals whatever,  except  a  municipality,  would  think  of  asking 
pel-mission  to  repair  its  own  property — but  a  city  or  town — 
well,  it  would  ask  permission  to  sneeze  if  it  needed  to  perform 
that  operation;  it  can't  even  stop  a  fight  legally  till  the  legisla- 
ture says  it  may. 

A  large  part  of  our  state  legislation  consists  of  acts  that  deal 
with  insignificant  local  matters  that  should  be  left  under  gen- 
eral laws,  to  the  discretion  of  municipal  and  county  authori- 
ties. In  Massachusetts  more  tlian  a  hundred  towns  and  cities 
apply  in  a  single  year  for  special  legislation  in  their  behalf  to 
the  great  overburdening  of  conmiittees,  the  dissipation  of  legis- 
lative energy,  the  decision  of  numberless  local  questions  by 
men  who  know  little  or  nothing  about  the  case,  the  prevention 
of  due  consideration  of  important  State  affairs,  the  general 
distraction  of  attention  and  encouragement  of  loose  methods 
of  passing  laws,  or  allowing  them  to  pass  without  finding  out 
whether  they  ought  to  pass,  and  the  serious  congestion  of  the 
statute  book,  entailing  on  the  public  treasury'  the  needless  cost 
of  printing  hundreds  of  la^vs  for  the  State  every  year,  when 

26 


402  MUNICIPAL  LIBERTY. 

an  entrj'  on  the  books  of  a  citv,  town,  or  county,  would  do  just 
as  well,  or  better. 

The  New  Jersey  General  Statutes,  1895.  contain  seven 
special  acts  as  to  cities  besid'-'  numberless  fragrnents  affecting 
them  moi-e  or  less.  There  is  3^^  act  concerning  cities  of  the 
first  class,  or  those  over  100,000  population;  another  as  to 
cities  of  the  second  class  between  12,000  and  100,000,  another 
as  to  third  class  cities,  all  those  not  in  the  first  or  second 
class,  except  Sea-side  resorts;  another  as  to  Sea-side  resorts: 
another  relating  to  cities  between  6,000  and  10,000;  another 
about  cities  below  5,000;  and  another  as  to  cities  generally. 
There  is  an  enormous  amount  of  repetition — the  councils  have 
powere  that  are  similar  to  a  large  extent  in  the  different 
groui>s,  but  there  is  difference  enough  so  that  it  is  almost  im- 
possible to  tell  just  what  the  authority  of  a  particular  city  is 
under  any  given  circumstances — quite  impossible  without  em- 
ploying a  laA^-yer  to  investigate  the  statutes  and  decisions.  The 
General  Statutes  are  composed  of  three  big  volumes  containing 
4,098  enormous  pages — over  1,200  words  to  a  page,  and 
nearly  5,000,000  words  altogether,  and  every  legislative  ses- 
sion adds  another  book  of  laws;  30  of  the  giant  pages  are  given 
to  a  dissertation  on  oysters  and  clams,  and  400  pages,  or  nearly 
50,000  words  are  devoted  to  cities  and  towns,  besides  the  quan- 
tities of  scraps,  to  exhaust  which  one  must  search  the  imi>er- 
fectly  indeixed  volumes  under  40  or  50  heads. 

This  e^egious  violation  of  the  laws  of  liberty  and  decen- 
tralization, burdening  the  legislature  with  a  mass  of  local  con- 
cerns about  which  they  know  little,  and  care  little,  taking  their 
time  and  attention  from  the  broad  interests  they  ought  to  deal 
with,  diminishing  their  respect  for  and  interest  in  law  mak- 
ing, subjecting  lo<'al  l)usiness  to  irresponsible  ^'foreign"  con- 
trol, and  depriving  municipalities  of  the  benefits  of  self-gov- 
ernment, constitutes  one  of  the  great  evils  of  our  time. 

Third.  Another  result  of  our  present  system  is  a  great  lack 
of  elasticity  and  spontaneity  in  municipal  action. 

Fourth.  The  absence  of  municipal  independence  cripples 
local  patriotism,  creates  a  disastrous  apathy  in  many  honest 
citizens,  forfeits  the  educational  development  that  comes  of 


LOCAL  GOVERNilEXT  BY  THE  LOCAL  PEOPLE.       403 

earnest  attention  to  public  questions.  The  people  do  not 
manifest  the  interest  in  local  business,  especially  in  the  larger 
cities,  which  they  would  manifest  if  the  right  of  decision  and 
initiative  rested  with  them.  As  the  Fassett  Committee  says: 
"Our  cities  have  no  real  local  autonomy,  local  self-govern- 
ment is  a  misnomer,  and  consequently  so  little  interest  is  felt 
in  matters  of  local  business  that  in  almost  every  city  in  the 
state  it  has  fallen  into  the  hands  of  professional  politicians."* 
As  Prof.  Goodnowsays,  in  subtance:  "The  indifference  which 
has  been  too  evident  in  many  of  our  large  municipalities,  has 
undoubtedly  been  due  in  part  to  the  feeling  of  the  people  that 
their  efforts  were  of  little  avail.  Citizens  have  little  motive 
or  encourageonent  to  act  in  Xew  York  when  they  know  that 
their  efforts  can  be  at  any  time,  and  as  a  matter  of  fact  have 
frequently  been,  frustrated  at  Albany."** 

Fifth.  Municipal  dependence  helps  the  politicians  and 
ringsters  not  merely  thru  the  apathy  it  causes,  but  also  by 
shifting  the  scene  of  action  to  a  field  where  corruption  wins 
more  easily  in  respect  to  city  affairs  than  it  usually  would  in 
the  city  itself.  It  is  easier  to  persuade  Mr.  B.  to  favor  a  bill 
that  will  take  money  out  of  A's  pocket  than  it  is  to  persuade 
A  to  favor  that  bill.  Mr.  N".,  representative  from  Cleveland 
draws  up  a  bill  to  extend  the  franchise  of  a  street  railway  com- 
pany for  which  he  is  counsel.  The  representative  from  Col- 
umbus, S,  has  a  bill  to  establish  a  state  commission  to  control 
the  city's  water  supply  on  the  understanding  that  he,  S,  \vii\ 
be  appointed  commissioner.  Mr.  Z,  of  Cincinnati,  is  engaged 
in  a  law  suit  which  will  become  more  hopeful  for  him  if  a 
law  is  enacted  changing  the  remedy  in  that  class  of  cases,  and 
so  he  introduces  a  bill  for  that  purpose.  In  one  case  a  legis- 
lator who  kissed  a  woman  on  the  street  without  permission, 
and  Avas  sued  for  damages,  introduced  a  bill  to  the  effect  that 
the  damages  for  kissing  a  woman  on  the  street  should  not  ex- 
ceed $250 — the  woman  was  pretty  and  he  feared  the  jury 
might  give  her  heavy  damages.  Mr.  X,  of  Toledo,  has  an  equ- 
ally public  spirited  measure  on  hand  and  so  have  other  repre- 

*  (Senate  Rep.  Fassett  Com..  1891.  Vol.  V.,  p.  13.) 
•*  Polit.  Sc.  Quar.,  March.  '!)5. 


404  THE   CITY    FOE   THE    PEOPLE. 

eentatives.     N".  says  to  S.  Z.  X.  &  Co. :  ^' You  vote  for  my  bill, 
and  I'll  vote  for  yours."     "All  right,"  say  S.  Z.  X.  &  Co. 
Some  members  vote  as  X.  wishes  because  they  are  friends  of 
his,  and  have  no  interest  in  the  Cleveland  matter,  and  don't 
know  anything  about  it,  and  don't  care.     Other  members  are 
too  busy  to  pay  any  attention  to  the  bill,  tho  it  is  part  of  the 
business  they  are  paid  to  attend  to.     So  altogether,  by  negli- 
gence, indulgence,  log-rolling,  and  pressure  of  influence,  and 
of  money  if  need  l>e,  many  municipal  and  other  measures  are 
enacted,  which  have  no  public  purpose  for  a  motive,  but  exist 
for  private  advantage  and  profit.     In  this  way,  scheming  men 
&re  able,  thro  legislative  influence,  to  secure  the  creation  of 
lucrative  ofiices  to  be  sustained  at  city  expense,  to  line  their 
pockets  with  the  people's  money  under  color  of  municipal  con- 
tracts and  public  works  which   a   really   self-governing   city 
would  never  have  authorized,  and  to  obtain    valuable    fran- 
ehises  in  relation  to  Avater,  gas,  electricity,  transit^  etc.,  without 
remuneration  to  the  city  whose  streets  are  used,  and  often 
"Without  the  consent  of  the  people  or  their  municipal  agents. 
And  it  happens  not  infrequently  that  a  state  senator  or  repre- 
sentative from  a  city  becomes,  thru  his  power  in  the  legisla- 
ture, the  virtual  ruler  of  that  city,  subject  of  course  to  the  big 
politicians  and  bosses,  like  Croker,  Piatt,  Quay,  Hanna,  etc., 
who  can  control  not  only  cities,  but  anything  else  the  legisla- 
ture has  a  right  to  act  upon,  except,  perhaps,  a  great  railroad 
or  a  giant  monopoly.     These  industrial   bosses   and   political 
bosses  understand  each  other  so  well  that  we  have  not  had  a 
chance  to  see  which  would  win  in  a  fight  to  the  finish. 

Sixth.  The  path  of  progress  and  reform  is  obstructed  or 
blocked  by  the  inertia  consequent  on  the  necessity  of  fighting 
every  upward  measure  thru  the  legislature  against  the  force 
of  antagonistic  pi-ivate  interests,  the  indifference  of  over- 
crowded and  more  or  less  alien  legislators,  and  the  weighty 
lack  of  local  patriotism  and  public  spirit  due  to  municipal 
dependence. 

Sometimes  the  private  interests  opposed  to  municipal  pro- 
gress form  a  state  wide  union  to  resist  with  their  whole  power 
any  measure  looking  toward  reform  in  any  city.     AVhen  a 


HOME   RULE   FOR   OUR   CITIES.  405 

bill  was  brought  before  the  New  York  legislature  to  authorize 
a  municipal  subway  in  Syracuse,  a  prominent  lobbyist  told  the 
mayor  of  Syracuse  that  he  was  wasting  his  time  working  for 
the  bill;  it  might  pass  the  legislature  but  it  would  not  become 
law;  it  would  be  killed  either  in  the  legislature  or  afterward, 
for  all  the  electric  companies  in  the  state  had  put  funds  in  a 
pool  in  the  hands  of  a  lobbyist  he  knew  (and  named)  to  be 
used  against  any  bill  tending  toward  public  ownership.  In 
this  case,  the  bill  passed  the  legislature,  but  died  in  the  Gov- 
ernor's hands. 

The  lack  of  home  rule  hinders  development  in  other  ways 
than  those  already  mentioned.  For  example.  Governor  Pin- 
gree  tells  me  that  if  Detroit  had  possessed  home  rule  a  few 
years  ago,  it  would  have  been  possible  to  accept  the  offer  made 
by  a  responsible  syndicate  to  run  all  the  street  railways  of  tli6 
city  as  one  system  on  a  uniform  2^  cent  fare  with  free  trans- 
fers, and  pay  the  interest  on  the  sum  expended  by  the  city  in 
obtaining  possession  of  the  roads  under  the  right  of  eminent 
domain.  It  was  a  splendid  offer,  but  Detroit  was  still  in  her 
nonage,  she  could  not  act  for  herself,  and  the  legislature  was 
not  in  session,  and,  if  it  had  been,  a  long  and  costly  fight  with 
the  companies  would  have  been  necessary,  with  defeat  for  the 
city  perhaps  at  the  end.  The  Governor  knows  whereof  he 
speaks,  for  he  spent  $75,000  of  his  own  money  fighting  corpor- 
ations while  he  was  Mayor  of  Detroit. 

THE  REMEDY. 

The  cure  for  the  evils  of  municipal  dependence  is  muni- 
cipal independence.  A  certain  amount  of  dependence  is  good 
— essential  to  state  and  national  organization,  and  the  co- 
ordination of  effort  for  wide  purposes;  but  over-dependence 
is  an  evil,  and  the  excess  should  give  place  to  independence. 
Instead  of  having  to  get  permission  for  every  move  in  local 
concerns,  municipalities  should  be  free  under  general  r^u- 
lations,  to  act  in  any  way  they  please  so  long  as  they  do  not 
co?iflict  with  superior  law.  This  we  may  call  tue  Manhood 
Principle,  as  distinguished  from  the  Infancy  Principle, 
whereby  the  child,  or  municipality,  acts  by  permission.     This 


406  THE   BONDAGE   OF   CITIES 

rule  would  give  municipalitieb  a  strong  initiative,  a  power  of 
self-movement,  after  the  manner  of  living  things,  instead  of 
compelling  them  to  remain  motionless,  like  a  lifeless  machine, 
till  the  legislature  turns  on  the  steam.  The  Manhood  Prin- 
ciple prevails  in  some  countries  of  Europe,^  is  imperfectly  ex- 

(')  In  England,  the  same  law  holds  respecting  municipalities  as  in  this 
country;  a  city  can  do  nothing  without  permission,  but  Parliament  has 
generally  been  quite  liberal  in  granting  permissions,  and  much  good  has 
been  done,  especially  by  such  sweeping  enactments  as  the  Tramways  Act 
of  1870.  under  which  municipalities  may  build  their  own  tramways  if  they  so 
desire,  or  If  the  city  chooses  to  allow  a  private  company  to  build  the  lines, 
then  at  the  end  of  21  years,  and  of  each  subsequent  franchise  period  of  7 
years,  the  city  has  2  years  In  which  It  may  buy  the  railways  at  the  actual 
value  of  the  physical  plant.  About  one-quarter  of  the  tramways  of  England 
and  Scotland  are  owned  by  municipalities,  and  additions  to  the  list  are  being 
constantly  made  as  the  franchise  periods  expire.  Special  permission,  how- 
ever, must  be  obtained  if  the  city  wishes  to  operate  us  tramways.  This  has 
been  secured  by  a  number  of  cities  without  serious  difficulty,  but  permissions 
to  buy  up  and  rebuild  the  slum  districts,  and  to  own  and  operate  a  municipal 
telephone  system  are  not  so  easily  obtained,  as  Glasgow  has  reason  to  know 
the  difficulty  in  the  latter  case  being  due  to  the  reluctance  of  the  postal 
authorities  to  grant  telephone  licenses  that  will  result  In  a  duplication  of 
exchanges  in  the  same  locality,  preferring  to  wait  until  the  whole  system 
can  become  public  at  reasonable  cost  without  Incurring  the  complexities  and 
wastes  of  competition.  Notwithstanding  the  absence  of  municipal  sover- 
eignty de  jure,  a  number  of  English  cities  have  made  considerable  progress 
toward  real  self-government  In  local  concerns.  Glasgow,  for  example,  the 
8e<  ond  city  In  Great  Britain,  has  control  of  her  streets,  owns  and  operates 
her  street  railways,  gas  and  electric  works  for  public  lighting  and  sale  to 
consumers,  water  works,  hydraulic  power  works  to  supply  motive  power  for 
elevators,  etc.,  hospitals,  sanitary  wash-houses,  sewers,  garbage  and  street 
cleaning  plants,  municipal  farm,  model  tenements,  and  lodging  houses,  public 
baths  and  laundries,  public  markets,  cattle  yards  and  slaughter  houses,  parks, 
play  grounds,  fire  department  and  police  (partlj-  paid  for  by  a  government 
grant,  the  maintenance  of  order  being  in  theory  and  origin  a  general  rather 
than  a  local  function),  public  ferries,  steamships,  docks,  shipyards,  in  fact 
the  whole  harbor  and  its  various  services. 

The  development  of  municipal  control  over  local  business  affairs  in  Glas- 
gow and  Birmingham  and  other  English  cities  in  the  last  few  decades  has 
had  much  to  do  with  their  transformation  from  among  the  most  corruptly 
governed  to  the  front  rank  among  the  best  governed  cities  of  the  world. 

In  France  the  dual  character  of  the  municipality  is  clearly  recognized, 
the  mayor  being  distinctly  understood  to  act  In  the  double  capacity  of  agent 
for  the  general  government,  and  agent  for  the  commune.  The  law  expressly 
ascribes  to  him  this  two-fold  character.  As  agent  for  the  nation,  he  must 
attend  to  military  matters,  national  taxes,  registration  of  births,  deaths  and 
marriages,  and  the  general  execution  of  all  national  laws  in  the  commune. 
As  agent  of  the  municipality,  he  is  charged  with  the  care  and  management 
of  the  municipal  property,  the  direction  of  public  works  of  a  local  character, 
leasing  places  in  the  markets,  attending  to  various  specified  business  trans- 
actions in  behalf  of  the  commune,  and  in  general  with  the  carrying  out  of 
the  decisions  of  the  municipal  council. 

Both  In  France  and  In  Germany  the  rule  of  law  Is  that  a  municipalitv  is 
free  to  do  any  act  not  contrary  to  the  laws  above  It— the  exact  reverse  of  our 
rule.  Here  cities  can  do  nothing  without  permission;  there  cities  can  do 
anything  unless  forbidden. 

In  France,  tho  the  principle  is  good,  the  limitations  of  the  superior  law 
are  great;  but  in  Germany,  municipal  home  rule  really  does  exist  to  a  very 
substantial  degree,  and  with  marked  advantages  in  awakening  local  patriot- 
Ism  and  securing  men  of  high  character  and  ability  to  manage  citv  affairs. 
?"J  .j-'^'^^  Century,  the  Prussian  policy  was  to  "sink  the  independence  and 
individuality  of  the  municipalities  in  the  absolutism  of  the  state,  going  even 
6o  far  as  to  treat  municipal  property  as  belonging  to  the  state  *  •  *  • 
But  all  this  was  changed  by  the  legislation  of  1808.  Mlinlcipalities  wer«* 
recognized  as  organic  entities,  with  their  own  properties  and  functions,  and 
with  the  right  of  entire  self-government  witfcin  the  sphere  of  their  strictly 
local  and  neighborhood  concerns.  There  are  in  the  German  concention  of 
city  government  no  limits  whatever  to  the  municipal  functions.  It  is  the 
business  of  the  municipality  to  promote  in  every  feasible  way  Its  own 
welfare-  and  the  welfare  of  its  citizens."  The  Germans  regard"  municipal 
ownersh  p  and  management  of  public  utilities  simpiv  as  part  of  a  thriftv  and 
progressive  municipal  housekeeping.  Everything  is  Involved  in  the  concep- 
tion of  the  municipal  household  and  the  full  and  unlimited  responsibility  of 
the  cit.v  for  the  welfare  of  its  citizens.  "The  German  citv  holds  itself  re- 
sponsible for  the  educaUon  of  all,  for  the  provision  of  amusement  and  the 


TO    POLITICIANS    ANB    MONOPOLISTS    ilUST    CEASE.  407 

pressed  in  the  charters  of  some  of  our  cities,  and  partly  incor- 
porated in  the  constitutions  of  California,  AYashington, 
and  some  othei-  siates,  and  in  the  Missouri  statutor^^  powers 
of  first  class  cities,  etc.  While,  however,  this  rule  con- 
fers on  the  municipal  body  the  power  of  self-movement,  and, 
when  joined  with  constitutional  safeguards  against  special 
legislation,  and  provisions  securing  the  referendum,  is  a  most 
valualjle  contribution  to  municipal  liberty,  yet  it  does  not  pre- 
vent legislative  ohstruetiou  of  municipal  mo^^ement.  The 
legislature  can  still,  by  positive  action,  completely  control  the 
municipality.  To  prevent  this  in  matters  that  should  be  left 
to  local  discretion,  a  limited  sphere  of  local  activity  should  be 
clearly  marked  off  and  deeded  to  local  self-government,  to 
belong  to  municipalities  absolutely,  to  the  positive  eaeclusion 
of  legislative  inte'rference.  The  state  and  the  nation  each  has 
such  a  sphere;  why  not  the  city?  The  idea  of  assigning  such 
a  local  area  of  assured  self-government  for  municipalities  is  an 


means  of  recreation,  for  the  adaptation  of  the  training  of  the  young  to  the 
necessities  of  gaining  a  livelihood,  for  the  health  of  families,  for  the  moral 
interests  of  all,  for  the  civilizing  of  the  people,  lor  the  promotion  of  indi- 
vidual thrift,  for  protection  from  various  misfortunes,  for  the  development 
of  advantages  and  opportunities  in  order  to  promote  the  industrial  and  com- 
mercial well  being,  and  incidentally  for  the  supply  of  common  services  and 
the  introduction  of  conveniences."  Such  are  some  of  Dr.  JShaw's  remarljs  in 
his  Municipal  Government  in  Europe,  pp.  305-329,  and  he  goes  on  to  speak  in 
detail  of  the  splendid  efficiency  of  German  city  governments  in  the  prosecu- 
tion of  prblic  works  aud  enterprises,  and  the  care  that  is  taken  with  gas, 
electric  light  and  street  railway  franchises,  etc.,  it  being  a  common  practice 
when  a  franchise  is  leased  to  a  private  company  to  provide  in  the  contract: 
(Ij  for  ndeo.uate  payment  to  the  city  for  the  privileges  granted,  (2)  for 
municipal  sui)er\-ision  of  accounts  and  control  of  the  service,  (3)  for  reatson- 
ablo  rates.  t4)  for  city  nurcliase  at  the  fair  value  of  the  plant  estimated  ac- 
cording to  methods  clearly  stated  in  the  contract,  and  (5)  for  cession  of  the 
entire  system  of  the  city  without  payment  at  the  end  of  the  franchise  term. 
After  speaking  of  these  matters  Dr.  Shaw  says:  "In  studying  these  German 
contracts  one  is  always  impressed  with  a  sense  of  the  first  class  legal,  finan- 
cial, and  technical  ability  that  the  public  is  able  to  command:  while  Ameri- 
can contracts  always  impress  one  with  the  unlimited  astuteness  and  ability 
of  the  gentlemen  representing  the  private  corporations."     Ibid.  p.  350. 

The  conception  of  a  city  as  a  self-governing  household  fully  responsible 
for  the  welfare  of  the  family,  and  fully  able  to  provide  for  that  welfare,  is 
very  diflferent  from  the  conception  of  a  city  as  a  creature  of  the  legislature, 
intended  simply  to  carry  out  the  will  of  the  legislature,  having  no  powers 
except  such  as  the  legislature  may  see  fit  to  grant,  and  no  ability  to  do  any- 
thing without  express  permission;  and  to  this  difference  is  largely  due  the 
superiority  of  German  municipalities.  A  similar  difference  is  one  of  the 
Important  factors  in  Glasgow's  wonderful  development  and  magnificent 
success.  The  conception  of  the  city  as  an  independent  self-governing  group, 
responsible  for  the  welfare  of  its  citizens  and  with  full  right  and  ability  to 
provide  for  it,  has  not  yet  embodied  itself  in  British  law,  but  the  cunception 
has  taken  possession  of  the  people  of  a  considerable  number  of  English 
municipalities,  and  has  transformed  them,  governmentally,  industrially, 
socially,  and  the  new  sentiment  will  soon  be  too  strong  for  any  Parliament 
to  break.  Home  rule  for  cities  may  be  practically  assured  in  this  country 
also  by  the  growth  of  a  similar  sentiment  here,  without  constitutional 
changes;  but  the  constitutional  method  seems  the  more  rapid  and  definite 
■  nd  certain,  and  besides  the  discussion  of  the  proposed  amendment  to  our 
■Hnnstitution  is  one  of  the  most  effective  methods  of  educating  ourselves  to  a 
fall  understanding  of  the  subject,  and  of  developing  public  opinion  in  favor 
>f  Uuincival  Home  Rule. 


408  MUNICIPAL  LIBERTY. 

application  of  what  we  may  call  the  Democratic,  or  Popular, 
or  Distributed  Sov^ereignty  Principle — the  principle  which 
gives  to  each  group  of  men  the  government  of  those  affaira 
which  are  specially  and  peculiarly  their  own,  so  that  interest 
and  power  may  go  together,  and  no  one  be  given  control,  in 
his  own  right,  of  matters  that  really  belong  to  other  people  of 
full  age  and  capacity.  The  Manhood  Principle  and  the  Dis- 
tributed Sovereignty  Principle  together  make  up  the  Liberty 
Principle,  or  Home  Rule  and  Self-government,  de  facto  and  de 
jure,  established  and  certain.  The  distinction  between  state 
and  local  interests  and  the  importance  of  municipal  self-gov- 
ernment have  been  frequently  emphasized  by  legal  authorities^ 
and  tho  not  yet  defined  and  protected  as  they  should  be,  they 
have  had  large  influence  in  the  framing  of  laws  and  govern- 
ments. Dillon  says:  "The  fundamental  idea  of  a  mvmicipal 
corporation  proper  is  to  invest  the  people  of  a  thickly  popu- 
lated place,  or  district,  with  the  power  of  regulating  their  own 
local  aifairs,  which  are  of  a  nature  not  common  to  the  state  at 
large,  and  which  it  is  supposed  they  can  regulate  for  them- 
selves better  than  the  legislature  can  regulate  them  by  general 
enactments."     (§27.) 

Interpreting  a  constitutional  provision  to  the  effect  that 
municipal  officers  must  be  elected,  or  appointed,  by  the  muni- 
cipal authorities,  the  New  York  Court  of  Last  Pesoi*t  has  said : 
"This  right  of  self-government  lies  at  the  foundation  of  our 
"institutions,  and  cannot  be  disturbed  or  interfered  with  even 
"in  respect  to  the  smallest  of  the  divisions  into  which  the  state 
"is  divided,  A\'ithout  weakening  the  entire  foundation;  and 
"hence  it  is  a  right  not  only  to  be  carefully  guarded  by  every 
"department  of  the  Government,  but  every  infraction  or  in- 
"vasion  of  it  ought  to  be  promptly  met  and  condemned,  especi- 
"ally  by  the  courts,  when  such  acts  become  the  subject  of  judi- 
"cial  investigation."^ 

In  People  v.  Ingersoll,  58  N.  Y.  1,  The  Court  said  that  the 
relation  of  principal  and  agent  does  not  exist  between  the 
State  and  a  municipal  coi-poration  in  respect  to  the  exercise  of 
corporate  functions.     "In  political  and  governmental  matters, 

(')  People  V.  Albertson,  55  N.  Y.  50,  57  (1873). 


LOCAL  GOVERNMENT  BY  THE  LOCAL  PEOPLE.       40 f> 

the  municipalities  are  the  representatives  of  the  sovereignty 
of  the  State,  and  auxiliary  to  it;  in  other  matters  relating  to 
property  rights,  pecuniary  obligations,  tliey  have  the  attributes 
and  distinctive  legal  rights  of  piivate  corporations." 

The  powerful  opinions  of  the  supreme  courts  of  Michigan 
and  Indiana  have  already  been  cited.  Almost  as  strong  are 
the  words  of  Chief  Justice  Dixon  in  Milwaukee  v.  Milwaukee, 
12  Wis.  93,  where  it  was  held  that  the  legislature  could  not 
divest  a  town  of  its  title  to  land  without  the  town's  assent,  and 
that  an  act  annexing  part  of  a  town  to  a  city  did  not  divest  the 
right  of  the  town  to  land  in  the  annexed  area,  to  which  it  held 
the  exclusive  title.  The  Chief  Justice  distinguished  between 
the  municipality  "as  a  civil  institution  or  delegation  of  merely 
"political  power,  and  as  an  ideal  being  endowed  with  the 
'^capacity  to  acquire  and  hold  property  for  corporate  and  other 
"purposes,"  and  said  "In  its  political  or  governmental  capacity, 
"it  is  liable  at  any  time  to  be  changed,  modified,  or  destroyed 
"by  the  legislature;  but,  in  its  capacity  of  owner  of  property, 
"designed  for  its  own  or  the  exclusive  use  and  benefit  of  its 
"inhabitants,  its  vested  rights  of  property  are  no  more  the  sub- 
"ject  of  legislative  interference  or  control,  without  the  consent 
"of  the  corporators,  than  those  of  a  merely  private  corporation 
"or  person." 

In  127  Mo.,  642  (1895),  the  Supreme  Court  of  Missouri 
drew  a  strong  line  between  state  interests  and  functions  and 
those  which  are  "of  merely  local  and  municipal  concern,"  and 
held  that  the  legislature  could  not  modify  the  freehold 
charters  of  the  large  cities  in  respect  to  local  affairs.*  (See 
p.  424.) 

CONSTiniTIONAL  AMENDMENT. 

The  best  institutional  remedy  would  seem  to  be  an  amend- 
ment to  e-ach  state  constitution  dramng  the  line  between  state 
and  municipal  interests  as  clearly  as  the  federal  constitution 
draws  the  line  bet^veen  state  and  national  interests,  providing 
for  municipal  sovereignty  within  the  defined  sphere  of  muni- 
cipal business,  and  full  freedom  to  do  any  act  even  tho  it  may 

*  Sop  furthor  on  this  subject  51  Mp.  362:  103  Mass.  499:  3  Hill.  531:  31 
Pa.  188:  64  Pa.  180;  18  Cal.  590;  28  Mich.  228,  237;  24  Mich.  44;  Compare 
14   Oreg.    98. 


410  THE  CITY   FOR   THE    PEOPLE. 

be  beyond  the  said  sphere,  provided  it  does  not  conflict  with 
state  or  national  law.  This  would  establish  the  manhood  rule, 
pins  the  absolute  exclusion  of  the  legislature  from  a  specified 
reservation  of  local  sovereignty.  Or,  the  proper  area  could  be 
deeded  to  state  sovereignty  by  metes  and  bounds,  as  the  area 
of  federal  sovereignty  is  marked  out  in  the  national  constitu- 
tion, leaving  the  remaining  territory  to  \^>  divided  between 
individual  and  municipal  sovereignty,  under  general  princi- 
ples and  specific  limitations,  such  as  those  applied  to  i^tate 
sovereignty  in  the  constitution  of  the  United  States.  The 
better  plan  would  seem  to  be  to  preserve  a  limited  area  foi 
municipal  sovereignty  covering  franchises  and  public  enter- 
prises of  a  local  character,  leaving  all  the  rest  of  the  existing 
state  sovereignty  in  its  present  indefinite  shape.  This  would 
seem  best  to  begin  with  because  it  is  less  of  a  change  from 
present  conditions  than  the  other  plan,  and  because  it  is  very 
important  not  to  diminish  too  much  the  powder  of  the  state, 
which  is  the  unifying,  systematizing,  co-ordinating  power 
upon  which  we  must  depend  for  uniformity,  and  the  equali- 
zation of  burdens  and  benefits  mthin  the  state  area.  It  is 
quite  as  important  not  to  deprive  the  state  of  the  sovereignty 
necessary  for  the  vigorous  and  effective  performance  of  its  du- 
ties, as  it  is  not  to  deprive  the  city  of  the  sovereignty  necessary 
for  the  vigorous  and  effective  performance  of  its  duties.  Each 
should  have  its  proper  share  of  sovereignty,  a  due  balance 
being  maintained  in  the  same  proportion  that  state  interests 
bear  to  local  municipal  interests,  just  as  a  due  balance  is  main- 
tained between  state  and  Federal  sovereignties  in  proportion 
to  national  and  state  interests. 

Under  such  a  Home  Rule  Amendment  as  we  have  suggested, 
each  city  and  town  would  make  its  awn  chart/cr,  subject  to 
general  statutes  regarding  state  interests,  and  in  harmony  with 
the  general  principles  and  limitations  above  mentioned,  just  as 
each  state  now  makes  its  own  constitution  subject  to  federal 
limitations. 

HOME  RULE  CHARTERS  AND  THE  REFERENDUM. 

In  order  that  such  municipal  charters,  and  the  ordinances 


HOME   EULE   FOE   OUE   CITIES.  411 

made  ilnder  them,  may  be  in  accord  with  the  will  of  the  people 
(male  citizens  of  full  age  and  of  apparently  or  presumedly 
sound  discretion)  it  is  necessary-  to  have  constitutional  pro- 
x-isions  guaranteeing  the  initiative  and  referendum  in  the 
making  and  amending  of  chartei-s  and  ordinances.  Other- 
wise, municipal  independence  might  simply  mean  the  substi- 
tution of  mayor  and  councils,  or  mayor  and  aldermen  for 
governor  and  legislature — a  change  that  would  generally  be 
of  some  l^nefit,  since  mayor,  aldermen  and  councilmen  belong 
in  tlie  city  they  rule,  undei*stand  something  of  its  condition, 
are  elected  by  the  citizens  of  the  city,  and  have  interests  thru 
which  they  can  be  made  to  feel  the  local  public  sentiment  to 
some  extent,  while  the  state  legislature  is  almost  wholly  com- 
posed of  men  from  other  cities  and  toxvns,  who  have  little  or 
no  acquainance  with  the  city  under  consideration,  do  not 
understand  its  needs,  have  no  direct  interest  in  it,  were  not 
elected  by  its  citizens,  and  do  not  feel  the  slightest  responsi- 
bility to  them.  ^Nevertheless,  home  rule,  mthout  the  refer- 
endum, would  still  be  government  by  the  few,  and  tbo  govern- 
ment of  local  business  by  a  few  who  live  in,  understand,  and  are 
elected  by  the  city,  is  likely,  as  a  rule,  to  be  superior  to  govern- 
ment of  local  business  by  a  few  who  don't  live  in,  nor  under- 
stand, nor  owe  allegiance  to  the  city;  yet  government  by  a  few 
in  any  form  is  likely  to  be  far  less  honest,  just,  progressive  and 
beneficient  than  government  by  the  whole  body  of  American 
citizenship.  As  soon  as  a  community  has  reached  a  stage  of 
evolution  whereon  it  is  able  to  govern  itself  without  a  break- 
down, it  should  exercise  self-rule,  for,  thru  that  exercise  alone 
can  come  the  full  justice  and  development  of  a  i>erfect 
democracy. 

SEPAEATION  OF  STATE  AXD  MUNICIPAL  AFFAIES. 

A  municipal  government  is  of  a  two-fold  character;  on  the 
one  hand  it  is  an  agency  of  the  state  to  deal  with  state  affairs, 
and  on  the  other  hand  it  is  an  agency  of  the  municipality  to 
deal  with  municipal  affairs.  In  the  first  relation  its  functions 
are  political  and  governmental;  in  the  second,  its  functions  are 
largely  similar  to  those  of  the  directors  of  a  business  corpor- 


412  THE   BONDAGE   OF   CITIES 

ation  whose  stockholders  are  the  citizens  of  the  city.  Most  of 
the  difficulty  and  confusion  in  municipal  law  has  come  from 
the  failure  of  constitutions,  legislatures  and  courts  of  law  to 
draw  the  line  between  these  two  sets  of  functions  with  proper 
strength  and  clearness. 

The  remedy  lies  in  establishing  a  separation  of  state  and 
municipal  intei*ests,  similar  in  substance  to  the  separation  es- 
tablished by  the  federal  constitution  between  state  and 
national  interests;  the  principle  of  decentralization,  or  the 
nearest  possible  approach  to  individual  freedom,  being  always 
the  guide;  no  liberty  should  be  taken  from  the  individual  and 
given  to  any  public  body  unless  the  transfer  is  clearly  for  the 
public  good;  no  liberty  within  the  public  sphere  should  be 
taken  from  the  municipality  and  placed  in  a  wider  grasp  unless 
the  wider  public  good  requires  it;  and  no  liberty  of  the  wider 
class  should  be  taken  from  the  state  and  given  to  federal  power 
unless  the  national  good  demands  it. 

As  a  business  corporation  dealing  with  property  for  muni- 
cipal revenue,  service,  or  advantage,  establishing  water  works, 
gas  plants,  telephone,  electric  light,  and  street  car  systems, 
markets,  bridges,  ferries,  parks,  etc.,  the  city  should  have  the 
fullest  discretion  subject  only  to  broad  limitations  in  respect 
to  debt,  unanimity,  submission  of  measures  to  the  people  at  the 
polls,  etc.,  to  prevent  improper  haste  or  ill-considered  action, 
or  possible  tyranny  of  majorities,  or  injustice  to  private  indi- 
viduals or  companies. 

In  this  relation,  the  municipality  is  an  organization  for  the 
common  benefit  of  its  citizens,  and  its  government  an  agency 
whose  duty  it  is  to  do  all  in  its  power  for  the  prosperity  and 
advantage  of  its  principals.  In  respect  to  state  interests,  the 
municipality  occupies  a  subordinate  position ;  yet  even  here  it 
should  be  free  to  act  so  long  as  it  does  not  conflict  with  state 
arrangements.  For  example,  the  preservation  of  order  and 
prevention  of  infection  are  state  affairs;  but  they  are  also  of 
prime  importance  to  every  municipality,  and  it  sliould  be  free 
to  establish  a  police  or  health  department  of  its  own  where  the 
state  does  not  act,  or  in  addition  to  the  state  agencies  where  it 
does  not  deem  them  sufficient;  in  other  words,  it  should  have 


TO    POLITICIANS    AXD    MONOPOLISTS    MUST    CEASE.  413 

a  sort  of  concurrent  jurisdiction  of  state  interests  within  its 
own  domain,  wherever  the  state  does  not  claim  exclusive  juris- 
diction. 

It  may  not  be  an  easy  matter  to  arrive  at  a  satisfactoiy 
di-sdsion  of  state  and  municipal  functions,  but  it  can  hardly  be 
more  difficult  than  the  separation  of  state  and  national  func- 
tions that  was  so.  satisfactorily  accomplished  by  the  makers  of 
the  federal  constitution.  Perhaps  it  might  be  well  to  try  a 
similar  plan  in  the  present  case ;  a  convention  of  distinguished 
judges,  statesmen,  philosophers,  etc.,  might  at  least  be  able  to 
arrive  at  conclusions  that  would  greatly  facilitate  a  solution 
of  the  problem,  and  give  the  courts  and  constitution  makers 
of  the  various  states  a  standard  that  would  help  to  mould  the 
law  of  the  country  into  at  least  a  semblance  of  consistency  and 
wisdom  on  this  vital  topic. 

After  the  division  of  sovereignty  is  made,  it  would  be  well 
to  have  state  and  municipal  elections  on  different  days  some 
months  apart,  so  that  the  choice  of  men  to  manage  the  water- 
works and  gi"ade  the  streets  might  be  more  dependent  on  fitr 
ness  and  less  upon  the  candidates'  opinions  about  free  silver, 
or  the  tariff,  or  his  affiliations  with  any  state  or  national  organi- 
zation or  party. 

STEPS  TOWARD  HOME  RULE. 

On  the  way  toward  the  solid  independence  outlined  in  the 
last  two  sections  a  number  of  partial  reforms  may  be  of  ad- 
vantage. When  it  is  not  possible  to  get  a  whole  loaf,  half  a 
loaf  is  better  than  none. 

A.  Broad  statutes  may  be  passed  giving  cities  larger 
powers,  especially  in.regard  to  the  granting  of  franchises,  and 
the  right  to  own  and  operate  local  business  enterprises.  A 
considerable  movement  has  taken  place  in  this  direction  in  the 
last  few  years,  but  it  often  requires  a  hard  fight  to  pass  such 
bills,  and  they  are  apt  to  be  narrowed  in  scope,  and  gorged 
with  -^vind  and  red  tape,  and  assassinated  wTith  ingenious 
amendments  and  limitations.  For  example,  it  required  a 
three  years'  struggle  to  get  the  Massachusetts  law  permitting 
cities  and  to^^^IS  to  establish  municipal  electric  light  works,  and 


414  MUNICIPAL  LIBERTY. 

even  then  its  corporation  enemies  succeeded  in  crippling  it 
with  amendments  which  made  it  of  little  practical  use. 

In  spite  of  all  the  imperfections  of  legislative  enlargement 
of  municipal  powers,  much  good  has  been  done  in  this  way, 
and  in  conservative  states  it  is  probably  the  line  of  least  resist- 
ance, and  the  greatest  immediate  hope.  We  have  seen  that 
Governor  Russell  of  Massachusetts  was  a  powerful  and  per- 
sistent advocate  of  this  reform. 

B.  The  second  partial  remedy  lies  in  the  possible  adoption 
of  the  Michigan  Doctrine  by  the  courts  of  other  states.  This 
is  probably  not  the  most  hopeful  line  of  attack,  but  is  worth 
the  effort  wherever  occasion  affords  an  opportunity  to  ask  for 
a  ruling  in  line  with  the  principles  laid  down  by  Judge  Cooley, 
as  above  stated. 

C.  Greater  help  is  likely  to  be  derived  from  the  insertion 
of  particular  provisions  in  the  state  constitutions — such  provi- 
sions, for  example,  as  the  following: 

1.  For  the  local  election  of  municipal  officers. 

2.  Against  special  legislation  for  laying  out,  or  vacating 
streets,  granting  franchises  to  railways,  turnpikes,  fen-ies,  etc., 
creating  corporations,  or  granting  corporate  powers,  creating 
municipal  offices,  or  prescribing  their  duties,  creating  or 
amending  municipal  charters,  or  regulating  municipal  affaii-s, 
etc.  It  is  a  marked  advanoei  to  take  away  from  the  legislature 
its  power  to  pass  special  acts,  and  yet  by  means  of  gi'ouping 
the  cities  in  classes  the  legislature  may  be  able  to  almost,  or 
quite,  attain  the  same  individual  or  specific  action  under  what 
is  called  "general  legislation"  (or  legislation  affecting  all  the 
cities  of  the  same  class)  that  it  formerly  attained  by  means  of 
what  was  called  "special  legislation." 

3.  Provisions  requiring  local  consent  to  street  railway,  gas, 
electric  light  or  telephonie  franchises. 

4.  Or,  still  better,  provisions  transferring  from  the  state  to 
the  municipality  the  power  to  gi-ant  such  franchises,  prescribe 
*heir  conditions,  and  regulate  their  exercise. 

6.  Or,  better  yet,  provisions  establishing  the  right  of  cities 
and  towns,  not  only  to  grant  and  regulate,  but  to  own  and 
operate,  water  works,  gas  works,  street  railways,  telephone  sys- 


LOCAL  GOVERNMENT  BV  THE  LOCAL  PEOPLE.       415 

tems,  etc., — best  when  the  clause  is  a  sweeping  one  that  gives 
ail  municipalities  the  right  to  own  and  operate  any  public 
work  on  the  people's  vote  to  that  effect. 

6.  It  is  most  important  to  secure  the  initiative  and  refer- 
endum upon  all  municipal  business,  franchises,  ordinances,  etc. 
Nebraska  took  a  step  in  this  direction  in  a  statute  passed  last 
year,  but  it  is  much  better  to  secure  the  right  by  constitutional 
pro^^sion  as  was  done  in  South  Dakota  this  fall  (1898).  Some 
state  constitutions  have  partial  provisions  requiring  local  con- 
sent to  incorporate  street  railway,  electric  light,  telephone  and 
other  franchise  grants,  but  I  know  of  no  constitution,  as  yet. 
tliat  secures  the  citizens  of  cities  their  full  rights  of  veto  and 
initiative. 

7.  A  measure  more  comprehensive  than  any  in  this  section, 
except  the  last,  is  to  be  found  in  a  constitutional  clause  per- 
mitting municipalities  to  make  their  own  charters.  If  the 
line  between  state  and  municipal  affairs  is  also  drawn  by  the 
constitution  and  legislative  action  excluded  from  the  special 
municipal  sphere,  we  have  the  final  remedy  already  spoken  of: 
but  even  without  this,  a  simple  clause  allowing  cities  to  make 
their  own  charters  subject  to  state  enactments  has  been  found 
very  useful.  Mo.  (1875),  Cal.  (1879),  Wash.  (1890),  and 
!Minn.  (1896),  have  put  provisions  of  this  kind  in  their  consti- 
tutions; and,  by  a  statute  of  Louisiana,  passed  in  1896,  any 
city  or  town  in  that  state  {except  Neic  Orleans)  may  adopt  a 
charter  of  its  own.^ 

HOME-MADE  CHARTER  LAWS. 

The  first  constitutional  provision  was  adopted  by  Missouri 
in  1875;  cities  over  100,000  population  (i.  e.,  St.  Louis  and 
Kansas  City)  may  make  their  own  charters.  The  city  may 
elect  13  freeholders  to  draw  up  a  charter,  which  should  be  sub- 
mitted to  the  voters  of  the  city,  and  if  ratified  by  four-fifths  of 
the  qualified  electors  voting  should  supersede  the  former 
charter,  and  all  amendments  thereto.  Such  charter  may  be 
amended  by  proposal  of  the  law  making  authorities  of  the  city 
published  thirty  days  in  three  newspapers  of  largest  circulation 
hi  the  city,  submitted  to  the  voters  sixty  days  or  more  after  the 


0)  Detroit  may  amend  Its  charter  by  direct  legislation.    (See  Appendix  I.^ 


416  THE   CITY    FOR    THE    PEOPLE. 

publication  of  the  j)ro])Osals,  and  accepted  by  at  least  3/5  of 
the  qualified  voters  of  such  city  voting  at  a  general  or  special 
election,  and  not  otherwise  (Missouri  constitution,  1875,  Art. 
IX.  §16).  'No  provision  is  made  for  legislative  approval  of 
the  amendment.  The  section  merely  says  after  the  words  just 
given,  "but  such  charter  shall  always  be  in  harmony  with, 
"and  subject  to,  the  constitution  and  laws  of  the  state." 

Section  20  of  the  same  article  gives  the  local  authorities  of 
St.  Louis  authority  to  appoint  an  election  at  which  the  citizens 
may  choose  a  board  of  13  freeholders  to  make  a  charter  which, 
if  adopted  by  a  majority  of  the  qualified  electors  voting  should 
become  the  organic  law  of  the  city. 

In  the  next  year,  Aug.  22,  1876,  St.  Louis  adopted  a  free- 
hold charter,  and  Kansas  City  followed,  April  8,  1889. 

In  the  other  states  named,  the  city's  population  does  not 
have  to  reach  the  100,000  home  rule  mark  established  in 
Missouri.  In  "Washing-ton,  cities  of  20,000  or  more;  in  Cali- 
fornia, cities  over  3500,  and  in  Minnesota,  all  municipalities 
may  make  their  own  chai-ters.  The  Louisiana  statute  adopts 
exactly  the  opposite  view  from  that  of  Missouri,  and  excludes 
New  Orleans  from  the  privileges  of  home  rule,  apparently 
deeming  large  population  a  disqualification,  or  perhaps  an 
extra  enticement  for  the  complete  retention  of  legislative  man- 
agement. On  petition  of  a  majority  of  the  property  owners 
of  any  city  or  town  (except  ISTew  Orleans)  to  the  mayor  and 
council  of  such  city  or  town,  praying  a  referendum  on  a  new 
charter  (a  copy  of  which  must  accompany  the  petition),  a  vote 
is  to  be  taken,  and  if  adopted  it  is  to  be  the  charter  of  the  city 
or  town,    (Laws  of  La.,  1896;  Xo.  135,  p.  190.) 

By  the  amendment  to  article  lY.  of  the  constitution  pro- 
posed by  the  legislature  in  1895,  and  adopted  by  the  people 
in  1896,  any  city  or  village  in  Minnesota  may  frame  a  charter 
for  itself  consistent  with  and  subject  to  the  laws  of  the  state. 
The  legislature  is  to  provide  for  a  board  of  15  freeholders  to 
be  appointed  by  the  district  judges  of  the  judicial  district  to 
which  the  municipality  belongs.  The  charter  proposed  by 
such  board  must  be  submitted  to  the  people  and  adopted  by 
4/7  of  the  qualified  electors  voting.    The  charter  does  not  re- 


HOME   RULE   FOE   OUR   CITIES.  417 

quire  legislative  approval;  but  "before  any  city  shall  incor- 
"porate  under  tbis  act,  tbe  legislature  shall  prescribe  by  law 
"the  general  limits  within  which  such  charter  shall  be 
^'framed."  The  board  of  freeholders  is  permanent  and  amend- 
ments to  the  charter  are  to  be  proposed  by  it,  and  accepted  by 
3/5  of  the  electors  voting. 

In  1897,  chap.  255,  the  legislature  enacted  that  the  judges 
should  appoint  fi-eeholders  "  whenever  requested  by  an 
^'ordinance  passed  by  the  common  council  of  any  city,  or  vil- 
"lage,  or  by  petition  signed  by  at  least  8  per  cent,  of  the  legal 
^'voters  thereof,"  and  that  the  charter  might  be  so  framed  as 
to  give  the  city  control  of  street  franchises,  provided  that  no 
perpetual  franchise  or  privilege  should  be  granted  nor  any  ex- 
clusive franchise  or  privilege  unless  the  grant  shall  be  sub- 
mitted to  the  people  and  approved  by  a  majority  of  the  electors 
voting,  and  even  then  the  grant  must  not  be  for  a  longer  period 
than  ten  years. 

The  legislature  of  1897  proposed  a  new  amendment  limit- 
ing the  term  of  the  freeholders  to  six  years,  and  providing  that 
charter  amendments  should  be  submitted  to  the  people  upon 
petition  therefor,  signed  by  5  per  cent,  of  the  legal  voters  of 
the  municipality. 

This  mil  give  the  people  a  strong  initiative — 8  per  cent,  can 
compel  the  making  and  submitting  of  a  charter,  and  5  per 
■cent,  can  secure  the  submission  of  an  amendment  to  it. 

In  any  city  of  Washington  state  having  more  than  20,000 
people,  the  legislative  authority  of  the  city  may  order  an 
•election  for  the  choice  of  15  freeholders,  who  must  convene 
within  10  days  and  prepare  a  charter  "consistent  with  and  sub- 
"ject  to  the  constitution  and  laws  of  the  state,"  which  charter 
shall  be  published  in  two  newspapers  in  the  city  for  at  least 
30  days  before  submission;  and  if  a  majority  of  the  voters  of 
the  city  ratify  the  proposed  charter,  it  supersedes  the  existing 
charter  including  amendments  thereto,  and  all  special  laws 
inconsistent  with  the  said  new  charter.  It  may  be  amended 
by  proposal  of  the  legislative  authority  of  the  city,  published 
as  above  and  adopted  by  a  majority  of  the  voters  (Wash. 
Const.  1890,  Art.  XL  §10). 

27 


418  THE   BONDAGE   OF   CITIES 

The  favorable  experience  of  St.  Louis  caused  an  effort  in 
the  California  Constitutional  Convention  of  1879  to  secure 
similar  privileges  of  self-government  for  San  Francisco.  At 
that  time  the  charter  of  San  Francisco  was  a  volume  of  319 
pages  of  fine  print.  Originallj",  it  covered  onlj  31  pages,  but 
more  than  100  supplemental  acts  had  been  passed  leading  to 
much  confusion  and  numerous  evils.  Many  of  these  acts,  says 
Oberholtzer,  had  been  passed  in  the  interests  of  single  indi- 
viduals and  coi-porations.  Half  a  dozen  men  framed  them 
and  took  them  to  Sacramento,  and  had  them  passed  without 
the  wish,  and  often  without  even  the  knowledge,  of  the  peoj)le 
or  even  the  officers  of  the  city.* 

Those  in  the  convention  who  opjX)sed  home  rule  declared 
that  San  Francisco  would  break  loose  from  the  rest  of  the  state 
and  set  up  an  independent  goverament  of  its  own.  "This  is  the 
boldest  kind  of  an  attempt  at  secession,"  they  said,  and  offered 
an  amendment  that  the  state  should  give  the  city  all  the  privi- 
leges and  co7isi(leration  accorded  the  most  favored  "foreign 
"nations,  and  should  provide  a  duly  accredited  minister  as 
•^representative  of  the  state  to  the  city." 

In  spite  of  all  opposition,  the  California  constitution  of 
1879,  Art.  XI.  §8,  i^ermitted  any  city  of  more  than  100,000 
population  to  ele<'t  15  freeholdei"s  to  frame  a  charter  to  be 
published  in  two  local  papei-s  for  20  days,  submitted  to  the 
people  within  30  days  after  the  ceasing  of  such  publication, 
adopted  by  a  majority  of  those  voting,  and  approved  by  the 
legislature.  Amendments  can  be  made  at  intervals  of  not  less 
than  two  years  by  proposals  submitted  by  the  legislative  au- 
thority of  the  city  to  its  voters  and  ratified  by  3/5  of  the  quali- 
fied electors  voting,  and  approved  by  the  legislature.  In 
1887,  the  privilege  of  home  made  charters  was  extended  by 
constitutional  amendment  to  all  cities  over  10,000,  and  in 
1890  all  cities  above  3500  were  admitted  to  freehold  charter 
privileges.  The  legislature  must  approve  or  reject  the  charter 
as  a  whole. 

Under  thepe  laws,  St.  Louis,  Kansas  Citv,  San  Francisco, 


•  E.    P.    Oberholtzer   In   Annals  of   the   Amer.    Acad,    of    Pol.    and   Social 
Science,    Vol.   3,   p.   736,   et  8i%. 


TO    POLITICIANS    AND    MONOPOLISTS    MUST    CEASE.  419 

Sacramento,  Oakland,  Los  Angeles,  Stockton,  San  Diego, 
Seattle,  Tacoma,  etc.,  have  established  charters  of  their  own 
making. 

The  St.  Louis  charter  gives  the  city  power  to  grant  fran- 
chises, construct  street  railways,  buy  and  hold  property,  real 
and  personal,  to  be  used  for  the  erection  of  water  works,  or 
gas  works,  to  supply  the  city  with  water,  or  light,  for  the 
establishment  of  hospitals,  or  poor  houses,  etc.,  or  for  any 
other  purpose j'  secures  the  local  election  or  appointment  of 
the  city  officers  required  by  the  charter;  and  provides  that 
amendments  to  the  charter  shall  be  submitted  to  the  people 
separately.  The  people  have  no  initiative,  however,  as  to 
amendments,  and  neither  initiative  nor  referendum  as  to 
ordinances. 

In  the  Los  Angeles  charter,  the  23d  corporate  power  is  as 
follows: — 

"To  exercise  all  municipal  powers  necessary  to  the  com- 
"plete  and  efficient  management  and  control  of  the  municipal 
"property,  and  for  the  efficient  administration  of  the  muni- 
"cipal  government,  whether  such  powers  be  expressly  enumer- 
"ated  or  not,  except  such  powers  as  are  forbidden  or  are  con- 
"trolled  by  general  law."  That  is  suggestive  of  the  principle 
I  have  spoken  of  as  the  IVIanhood  rule,  but  the  explicit  separ- 
ation of  municipal  and  state  affairs,  and  exclusion  of  the 
legislature  from  the  distinctively  municipal  field  are  still  miss- 
ing, and  a  strict  construction  of  such  indefinite  phrases  is  apt 
to  take  the  life  and  liberty  out  of  these  broad  clauses. 

The  new  charter  adopted  by  the  voters  of  San  Francisco  in 
May,  1898,  Art.  IL,  Chap.  1,  §13,  provides  that  "upon 
"petition  signed  by  a  number  of  voters  equal  to  15  \yev  cent, 
"of  the  votes  cast  at  the  last  election,  asking  that  an  ordinance 
"to  be  set  forth  in  such  petition  be  submitted  to  the  voters, 
"the  Board  of  Election  Commissioners  must  submit  such  pro^ 
"posed  ordinance  to  the  vote  of  the  electors  at  the  next  elec- 
"tion." 

The  initiative  and  referendum  upon  amendments  to  the 
charter  is  also  secured  to  the  voters  thru  a  similar  15  per 
cent,  petiiion.    (§22.)     The  purclvase  of  land  more  than  $50,- 


420  MUNICIPAL  LIBERTY. 

000  in  value,  the  lease  or  sale  of  any  public  utility,  or  the 
grant  of  any  franchise  for  the  supply  of  light  or  water  must 
be  submitted  to  the  electors — no-petition  is  necessary.  (§21.) 
The  people,  I  hope,  will  use  their  initiative  to  secure  an  amend- 
ment placing  street  railway  and  other  important  franchises 
on  the  compulsoiy  referendum  list.  The  granting  of  fran- 
chises is  in  the  hands  of  the  city  (Art.  11,  Chap.  I,  §  13,  Chap. 
IL,  §§6,  7,  etc.)  and  Art.  XIL,  p.  124,  entitled,  "Acquisition 
of  Public  Utilities,"  opens  with  this  remarkable  passage : — 

"It  is  hereby  declared  to  be  the  purpose  and  intention  of 
"the  people  of  the  city  and  county  that  its  public  utilities  shall 
"be  gradually  acquired  and  ultimately  owued  by  the  city  and 
"county.  To  this  end,,  it  is  hereby  ordained" — then  follow 
provisions  that  upon  a  15  per  cent,  petition  favoring  the  acqui- 
sition of  any  public  utility,  the  Board  of  Supervisors  shall  im- 
mediately take  steps  to  procure  plans  and  estimates  of  cost  and 
enter  into  negotiations  for  the  permanent  acquisition  of  such 
utility  by  construction,  condemnation,  or  purchase,  so  that  it 
may,  within  six  months  after  said  petition,  formulate  a  pro- 
position to  be  submitted  to  the  voters.  Or,  the  supen'isors 
may  themselves  pass  an  ordinance  embodying  the  idea  of  the 
petition. 

There  is  another  clause  that  does  not  require  a  petition  for 
public  ownership  to  put  it  in  operation.  It  is  to  the  effect  that 
"within  one  year  of  the  date  the  charter  takes  effect,  and  at 
"least  every  two  years  thereafter,  till  the  object  of  this  article 
"shall  have  been  fully  attained,  the  supervisors  must  procure 
"plans  and  estimates  of  the  actual  cost  of  the  original  con- 
struction and  completion  by  the  city  of  icater  ivorks,  gas 
uo7'Jcs,  electric  light  tcorks,  steam,  icater  and  electric  power 
works,  telephone  lines,  street  railroads,  and  such  other 
public  utilities  as  the  supervisors  or  the  people  by  petition 
may  designate." 

Article  XIII,  "Civil  Service,"  requires  the  mayor  to 
appoint  three  persons  "known  to  be  devoted  to  the  principles 
of  civil  service  reform"  to  act  as  a  civil  service  commission,  and 
no  two  of  the  commissioners  can  at  any  time  belong  to  the 
same  political  party.     These  commissioners    are    to    classify 


LOCAL  GOVERNMENT  BY  THE  LOCAL  PEOPLE.       421 

employments,  and  establish  "public,  free,  practical,  competi- 
"tive  examinations."  Each  appointment  to  the  classified 
service  must  be  made  from  a  list  of  three  applicants  having  the 
highest  rank  for  excellence  in  the  examinations  for  health, 
capacity  and  fitness  for  the  duties  of  the  position  to  which  they 
aspire.  The  appointment  is  on  probation  for  six  months.  At 
or  before  the  expiration  of  this  period,  the  head  of  the  depart- 
ment or  office  in  which  the  candidate  is  employed  may,  with 
the  consent  of  the  commissioners,  discharge  him  on  assigning 
in  writing  to  the  commissioners  his  reason  for  so  doing.  After 
the  period  of  probation,  the  appointee  "cannot  be  removed, 
"except  for  cause,  upon  written  charges,  and  after  an  oppor- 
"tunity  to  be  heard  in  his  own  defence,"  the  trial  to  be  before 
the  commissioners,  or  some  officer  or  board  appointed  by  them. 

"Laborers"  are  not  examined,  but  appointed  according  to 
priority  of  application. 

The  officers  put  in  the  classified  service  make  a  long  list, 
including  the  county  clerk,  assessor,  tax  collector,  sheriff, 
auditor,  the  board  of  public  works,  the  police  department,  the 
fire  department,  the  board  of  election  commissioners,  board  of 
health,  and  all  boards  or  departments  controlling  public  utili- 
ties. 

A  splendid  charter:  civil  service,  public  ownership,  initia- 
tive and  referendum,  and  a  very  substantial  degree  of  home 
rule — three  cheers  for  San  Francisco — ^and  yet  some  of  the 
reformers  of  'Frisco  complain  that  the  charter  is  imperfect; 
very  well,  friends,  you  have  the  initiative;  educate  the  voters 
and  perfect  it.  "WTiat  more  do  you  want  than  the  initiative, 
and  a  free  press?  You  have  the  future  in  your  own  hands 
subject  only  to  the  possible  contingency  of  adverse  legislation. 

The  constitutions  of  California,  Washington,  etc.,  and 
the  charters  of  many  municipalities  contain  a  clause  de- 
claring that:  "Any  county,  city,  town  or  township  may 
"make  and  enforce  within  its  limits,  all  such  local,  police,  sani- 
"tary,  and  other  regulations  as  are  not  in  conflict  with  general 
"laws."  (Cal.  Const.  Art..  XL,  §11.)  This  gives  munici- 
palities considerable  freedom,  whether  they  have  freehold 
charters  or  not;  in  fact,  so  far  as  regulations  are  concerned,  it 


422  THE   CITY    FOK    THE    PEOPLE 

is  the  Manlaood  Principle  itself.  But  the  word  "regulations" 
is  not  broad  enough  to  cover  radical  changes  of  structure  or 
policy,  or  purchase  or  sale  of  large  properties,  or  launching 
into  large  business  enterprises.^  If  the  clause  gave  the  city 
power  to  do  any  act  not  in  conflict  with  general  law,  we 
should  have  the  Manhood  Principle. 

Section  25  of  Art.  IX.  of  the  Missouri  constitution  says 
that  "notwithstanding  the  provisions  of  this  article  the  general 
"assembly  shall  have  the  same  power  over  the  city  and  county 
"of  St.  Louis  that  it  has  over  other  cities  and  counties  of  this 
"state."  That  is,  it  has  almost  unlimited  power  to  pass 
general  laws,  and  is  not  entirely  debarred  from  special  legis- 
lation. By  Art.  IV.,  §53,  however,  the  general  assembly  is 
forbidden  to  pass  any  local  or  special  law: 

Kegulating-  the  affairs  of  counties,  cities,  townships,  wards,  or 
school  districts; 

Authorizing  the  laying-  out,  opening",  altering",  or  maintaining, 
roads,  highways,   streets,  or  alleys; 

Vacating  roads,  town  plots,   streets,  or  alleys; 

Eelating  to  ferries  or  bridges,  except  interstate; 

Incorporating  cities,  towns,  or  villages,  or  changing  their  char- 
ters; 

For  the  opening  and  conducting  of  elections,  or  fixing  or  chang- 
ing the  places  of  voting; 

Creating  offices,  or  prescribing  the  powers  and  duties  of  officers 
in  municipalities; 

Regulating  public  schools; 

Exemj^ting  property  from  taxation; 

Regulating  labor,  trade,  money,  or  manufacturing; 

Creating  corporations,  or  amending,  renewing,  extending,  or  ex- 
plaining the  charters  thereof; 


0)  Regulations  will  not  cover  an  attempt  to  change  the  charter,  or  abro- 
gate a  tire  department  established  by  an  act  which  forms  part  of  the  charter. 
(People  T.  Wiltshire,  96  Cal.  605,  1892).  Neither  will  the  clause  justify  a 
violation  of  fundamental  principles  of  Justice  and  liberty.  An  ordinance  pro- 
hibiting the  carrying  on  of  a  laundry  in  town,  ^xcept  in  speciflcd  bloclvs.  and 
with  ii  written  permit  upon  consent  in  writing  of  a  majority  of  the  real 
property  owners  in  the  block,  was  held  to  be  beyond  the  authority  conferred 
by  the  clause,  such  ordinance  being  considered  an  unreasonable  interference 
with  the  inalienable  right  to  engage  in  a  lawful  occupation,  and  with  the 
right  of  the  owner  of  property  to  devote  It  to  a  lawful  purpose.  (Ex  parte 
Sing  Lee,  96  Cal.  354,  1892.)  But,  the  courts  have  held  the  clause  to  be  "a 
broad  far  reaching  power,  enabling  cities  to  pass  any  regulation  not  in  con- 
flict with  general  laws  or  fundamental  principles  of  constitutional  libcrtv. 
(Ex  parte  Lacey,  108  Cal.  326,  328,  sustaining  an  ordinance  prohibiting  steam 
shoddy  machines  or  steam  beating  machines  within  100  feet  of  any  church, 
or  school-house,  residence  or  dwelling.)  The  clnusp  was  intended  to  make 
cities  more  Independent  of  legislation.  (In  re  Guerrero,  69  Cal.  88;  in  re 
Muart.  (>1  ("al.  ;{74.)  Under  it  an  ordinance  of  San  Francisco  regulating  tlie 
sale  of  liquors,  was  held  good  (Ex  parte  Hayes,- 98  Cal.  535);  and.  another 
ordinance  regulating  the  sale  of  opium,  and  proiiibiring  it  except  under 
proper  restriction,   was  sustained  (Ex  parte  Hong  Shen,   same  volume). 


HOME   EULE   FOR   OUR   CITIES.  423 

Granting  to  any  corporation,  association,  or  individual  any  special 
or  exclusive  right,  privilege,  or  immunity,  or  to  any  corporation 
association,  or  individual,  the  right  to  lay  aown  a  railroad  track; 

Legalizing  the  unauthorized  or  invalid  acts  of  any  state  or 
municipal    officer; 

In  all  other  cases  where  a  general  law  can  be  made  applicable, 
no  local  or  special  law  shall  be  enacted;  and  whether  a  general  law 
could  have  been  made  applicable  in  any  case  is  hereby  declared  a 
judicial  question,  and  as  such  shall  be  judicially  determined,  with- 
out regard  to  any  legislative  assertion  on  that  subject. 

Nor  shall  the  general  assembly,  indirectly,  enact  such  special  or 
local  law  by  the  partial  repeal  of  a  general  law,  but  laws  repealing 
local  or  special  acts  may  be  passed. 

There  are  otlier  provisions  against  special  legislation,  but 
these  are  all  that  materially  affect  municipalities.  One  might 
think  that  local  legislation  had  been  abolished,  but  that  is  not 
quite  true.  At  the  last  session  (1897)  the  Missouri  legislature 
passed  a  special  act  defining  the  boundaries  of  the  city  of 
Palmyra,  and  another  to  give  the  city  of  Poplar  Bluff  au- 
thority to  vacate  a  cemeteiy. 

Section  54  of  Article  IV.,  provides  that  NO  local  or  special 
law  shall  be  passed  unless  a  notice  of  it  stating  its  substance 
shall  be  published  in  the  locality  affected  at  least  thirty  days 
before  the  introduction  of  the  bill  in  the  general  assembly. 

The  constitutions  of  all  the  other  four  states  we  have  been 
considering  provide  quite  fully  against  special  legislation, 
largely  in  the  same  words  as  those  just  quoted  from  I^Iissouri, 
so  that  the  freehold  chai-tei-s  are  not  likely  to  be  much  inter- 
fered with  except  by  general  legislation.^  They  are  clearly 
subject  to  this  to  some  extent  in  all  the  states  named,  and  in 
some  of  them,  at  least,  no  portion  of  the  municipal  business, 

0)  "A  law  Is  general  and  constltntlonal  when  It  applies  equally  to  all 
porsous  ombiacc'd  iu  a  class  fouuded  upon  some  natural  or  Intrinsic  or  con- 
stitutional distinction,  It  is  not  general  if  it  confers  particular  privileges,  or 
imposes  peculiar  disabilities  or  burdensome  conditions  in  the  exercise  of  a 
common  right  upon  a  class  of  persons  arbitrarily  selected  from  the  general 
body  of  those  who  stand  in  precisely  the  same  relation  to  the  subject  of  the 
law."  City  of  Pasadena  v.  Stimson.  91  Cal.  238,  251;  see  also  Rauer  v.  Wil- 
liams. 118  Cal.  401. 

Legislation  alTecting  cities  having  150,000  or  more  inhabitants  is  an  im- 
proper attempt  bu  the  net  itsrlf  to  create  a  class  of  municipal  corporations  for 
a  special  purpose,  without  reference  to  the  existing  classification  by  general 
law,  and  Is  local  and  special  legislation.    Denman  v.  Broderlck,  111  Cal.  96. 

Classilicatiou  must  be  fouuded  on  differences  defined  by  the  constitution. 
or  which  are  natural,  and  suggest  a  reason  which  might  rationally  be  held 
to  .iustify  the  diversity  in  the  legislation.  In  a  general  law.  none  must  be 
omitted  that  stand  on  the  same  footing  regarding  the  subject  of  legislation. 

Legislatures  cannot,  by  special  act.  create  a  class  of  cities  of  a  population 
'>etween  10,000  and  25,000  for  the  purpose  of  increasing  the  salaries  of  polic?- 
nen  in  a  particulai  city;  act  void,  Darcy  v.  San  .lose,  104  Cal.  642. 


424  THE   BOXDAGE   OF   CITIES 

however  purely  local  it  may  be,  is  secure  from  legislative  con- 
trol.^ The  freehold  charters  themselves  may  be  changed  by 
the  legislature,  and  the  constitutional  provision  as  to  amending 
charters  at  intervals  of  not  less  than  two  years  by  proposal  sub- 
mitted to  the  voters  by  the  city  authorities  does  not  prevent 
the  Legislature  from  changing  the  charter  by  general  legis- 
lation \vithin  the  two  years.^  In  California,  the  cities  making 
home  charters  found  themselves  so  hampered  by  general  law9 
that  they  secured  a  new  amendment  to  the  constitution.  By 
the  constitution,  the  charters  were  to  supersede  existing 
charters  and  all  special  la\vs  inconsistent  -v\dth  such  charters. 
In  Davies  v.  Los  Angeles,  86  Oal.  37,  40,  it  was  held  that  a 
general  law  relating  to  the  opening  and  widening  of  streets 

1  Ewing  V.  Hoblitzelle,  85  Mo.  64,  78,  general  law  about  elections  in 
cities  of  100,000  or  more,  was  held  to  apply  to  St.  Louis  In  spite  of  Its  free- 
hold charter,  and  It  overruled  the  provisions  of  this  charter  as  to  the  regis- 
tration of  voters.     See  also  122  Mo.  68  and  126  Mo.  652. 

In  Kansas  Citv  v.  Scarritt,  127  Mo.  642,  however,  the  court  distinguishes 
these  cases  and  others  dealing  with  laws  affecting  state  interests  from  cases 
dealing  with  laws  affecting  local  interests,  and  an  act  giving  cities  organized 
under  Art.  9,  5)16  (the  freehold  charter  clause  of  the  constitution),  a  right  to 
take  land  for  parks  and  boulevards  thru  a  board  of  park  commissioners,  was 
held  void  asjimounting  to  a  legislative  amendment  of  the  freehold  charter  in 
respect  to  internal  municipal  affairs.  The  court  said  that  under  the  consti- 
tution the  freehold  charter  could  be  amended  by  vote  of  the  people  "and  not 
otherwise."  It  remarked  that  the  legislature  might  pass  general  laws  as  to 
state  Interests  and  they  would  be  paramount  to  the  freehold  charters,  and 
referred  to  85  Missouri,  etc.,  Just  cited,  but  said:  "These  decisions  should 
"not  be  held  to  warrant  the  exercise  of  state  legislative  power  over  such 
"cit.y  charters,  so  far  as  relates  to  the  government  of  subjects  of  merely 
local  and  municipal  concern."  This  distinction  and  decision  in  127  Mo. 
excludes  the  legislature  from  altering  the  freehold  charters  (even  by  general 
laws)  in  respect  to  matters  of  purely  local  concern.  That  ought  to  be  the 
law,  but.  I  doubt  if  it  is  as  yet,  unless  the  courts  are  ready  to  carry  the 
Michigan  doctrine  to  Its  logical  limit.  Ipvlew  of  the  fact  that  the  constitution 
says  tti:it  the  i'roehold  charters  shall  "always  be  subject  to  the  laws  of  the 
state,"  It  seems  clear  that  the  "not  otherwise"  in  the  clause  relating  to 
charter  amendments  nnist^  be  confined  to  amendments,  as  such.  The  effect 
upon  a  charter  by  reason  of  its  subjection  to  a  general  law  of  the  state  is 
not  called  an  amendment  by  the  constitution,  and  the  court  in  doing  so 
goes  outside  of  and  beyond  the  constitution,  and  makes  a  constitution  for 
Itself.  There  is  no  distinction  in  the  constitution  between  general  laws 
affecting  state  interests  and  general  laws  affecting  municipal  interests— the 
charters  are  subject  to  all  general  legislation.  Ir  a  law  affecting  the  charter 
is  an  amendment  and  void,  as  a  violation  of  the  provision  that  the  cnarter 
shall  only  be  amended  by  vote  of  the  people,  then  the  law  considered  in 
85  Mo.,  which  concerned  elections  and  affected  the  charters  was  an  amend- 
ment and  void  as  a  violation  of  the  said  provision,  by  which  rule  the  legis- 
lature could  pass  no  law  affecting  the  freehold  charters,  and  the  provision 
subjecting  those  charters  to  state  legislation  would  be  abrogated.  I  wish 
the  decision  in  127  Mo.  were  good,  but  I  fear  it  is  not.  At  least  the  reason 
given  by  the  court  will  not  stand.  If  the  court  had  based  its  decision  on 
the  broad  principle  of  inherent  right  of  local  self-government  carrying  out 
the  line  of  thought  suggested  and  acted  upon  by  the  Michigan  and  Indiana 
courts,  we  might  hope  for  much  from  the  decision;  but  as  it  is  it  is  not  likely 
to  be  of  much  benefit. 

None  of  the  other  constitutions  in  the  freehold  charter  states  are  like 
the  Mo.  constitution  in  the  "not  otherwise"  clause,  except  the  Constitution 
of  Minnesota,  which  says  that  the  freehold  charter  may  be  amended  by  a 
vote  of  "three-fifths  of  the  qualified  voters  of  such  city  or  village  voting  at 
the  next  election,  and  not  otherwise;  but  such  charter  shall  alwavs  be  In 
harmony  with,  and  subject  to  the  constitution  and  laws  of  the  State  of 
Minnesota." 

» People  V.    City   of   Coronado,    100   Gal.   571    (1893). 


TO    POLITICIANS    AXD    MONOPOLISTS    MUST    CEASE.  425 

controlled  the  city  in  spite  of  its  freehold  charte".  In  San 
Diego  all  street  work  had  to  be  done  nnder  state  law,  the  citr 
police  court  was  deprived  of  its  charter  jurisdiction,  and  the 
board  of  education  could  not  operate  according  to  the  charter. 
Finding  that  this  unlimited  subjection  to  general  laws  largely 
nullified  the  advantages  of  the  new  charters,  the  cities  united 
in  a  demand  for  a  new  amendment  leaving  out  the  word 
"special."  The  adoption  of  this  change  by  a  vote  3  to  1  was 
declared  Dec.  30th,  1892.  And  now  §8  of  Art.  XI  of  the 
Cal.  constitution  provides  that  "any  city  containing  a  popu- 
lation of  more  than  3500  inhabitants  may  frame  a  charter  for 
its  own  government  consistent  with  and  subject  to  the  con- 
stitution and  laics  of  this  state,"  which  charter  "shall  become 
the  organic  law  thereof,  and  supersede  any  existing  charter 
and  all  amendments  thereof,  and  all  laws  inconsistent  with 
such  charter."  The  charter  is  to  be  consistent  mth  and  sub- 
ject to  the  laws  of  the  state,  and  yet  it  is  to  supercede  all  la-\vs 
inconsistent  with  it.  The  supreme  court  does  not  appear  to 
have  construed  this  amendment,  but  it  may  probably  be  in- 
terpreted to  mean  that  the  charter  supersedes  existing  laws, 
general  or  special,  that  conflict  with  it,  but  is  still  subject  to 
any  valid  general  laws  passed  by  the  legislature  after  the 
adoption  and  approval  of  the  charter. 

It  is  quite  clear  that  the  legislature  can  modify,  limit  or 
annul  the  powers  and  privileges  of  cities  under  their  freehold 
charters  in  any  of  the  states  above  named,  but  it  is  equally 
clear  that  the  charter  liberties  vnW  very  soon  gather  about 
them  a  public  sentiment  that  will  protect  them,  and  lead  in 
the  course  of  time  to  an  efficient  demand  for  a  specific,  de- 
finite, constitutional  division  between  state  and  municipal 
functions.  A  city  that  enjoys  self-government  in  local  busi- 
ness for  a  few  years,  originating  and  deciding  for  itself,  with- 
out legislative  intervention,  will  soon  come  to  regard  the  privi- 
lege as  an  inalienable  right.  The  limitation  of  legislation  to 
general  laws  tends  to  prevent  unjust  and  oppressive  interfer- 
ence in  municipal  affairs  because  a  bad  general  bill  having  a 
wider  incidence  will  rouse  more  opposition  than  a  special  act. 
In  every  way  the  provisions  of  the  constitutions  under  discus- 


426  MUNICIPAL  LIBERTY. 

sion  appear  li;  »:oiiaLitute  a  marked  advance,  and  to  lead  inevi- 
tably to  a  strong  acceleration  of  the  movement  toward  assured 
home  rale  in  local  municipal  concerns,  with  free  initiative 
under  general  law  along  the  whole  line. 

Thru  the  growth  of  public  sentiment,  crystallizing  finally 
into  constitutional  enactment,  the  control  of  streets  and  local 
franchises,  water  Avorks,  gas  works,  electric  light  plants,  street 
railways,  telephones,  fire  departments,  bath-houses,  lodging- 
houses,  hospitals,  parks,  market-houses  and  other  business  and 
proprietary  matters  of  peculiarly  local  character,  will  be  se- 
cured to  the  municipality  free  of  legislative  intervention,  sub- 
ject only  to  the  requirements  of  the  initiative  and  referendum, 
the  broad  principles  of  justice  and  liberty  that  underlie  and 
permeate  our  institutions,  and  the  regulative  rules  to  secure 
co-ordination,  uniformity,  symmetry,  equalization,  etc.,  that 
are  or  may  be  incorporated  in  our  constitutional  law. 

Thru  and  beyond  the  guaranteed  field  of  exclusive  local 
sovereignty  will  go  the  all  embracing  right  of  free  initiative 
and  decision  except  where  state  or  national  law  forbids.  By 
these  two  improvements,  with  reasonable  guards  against 
special  legislation,  municipal  independence  will  be  achieved. 

POIXTS  FOE  CHARTER  LAWS. 

It  is  probable  that  in  the  near  future  other  states  will  adopt 
constitutional  provisions  in  favor  of  home  rule.  In  view  of 
the  movement  along  the  ]\Iissouri  line,  it  is  well  to  note  that : 

(1)  The  initiative  in  calling  an  election  to  choose  free- 
holders to  make  a  charter  should  not  rest  entirely  mth  the 
city  officials — the  people  should  be  able  by  petition  to  start  the 
ball,  as  in  Minnesota  and  Louisiana. 

(2)  The  charter  should  be  required  to  contain  provisions 
securing  the  initiative  and  referendum  on  amendments  and 
ordinances. 

(3)  If  the  approval  of  the  legislature  is  required,  as  in  Cali- 
fornia, the  constitution  ought  to  declare  that  the  charter,  when 
approved,  should  be  deemed  a  contract  and  protected  as  such. 

(4)  An  effort  should  be  made  to  get  the  constitution  not 
merely  to  authorize  municipalities  to  make  their  own  charters, 


LOCAL  GOVERXMEXT  BY  THE  LOCAL  PEOPLE.       427 

subject  to  the  general  law  of  the  state,  but  to  define  a  certain 
area  of  local  business  in  which  the  city  should  be  supreme,  and 
from  which  the  legislature  should  be  absolutely  excluded  ex- 
cept so  far  as  it  may  be  specifically  empowered  by  the  consti- 
tution; and  in  addition  to  this  it  should  authorize  cities  and 
towns  under  proper  restraint  in  respect  to  the  referendum,  etc., 
to  act  in  public  matters  beyond  the  specified  area,  in  any  way 
they  may  see  fit  so  long  as  they  do  not  infringe  the  law  above 
them.  This  would  open  the  doors  of  freedom  wdde  to  all 
municipalities  whetJier  they  made  new  charters  or  not,  and 
give  them  a  limited  field  of  assured  self-government  beyond 
the  interference  of  the  legislature — a  bit  of  real  sovereignty, 
or  home  rule  de  jure,  instead  of  mere  home  rule  de  facto  at 
the  pleasure  of  the  legislature. 

(5)  The  constitution  should  contain  full  safeguards  against 
improper  special  legislation. 

SUMMING  UP  WE  FIND  THAT: 

The  cure  for  the  evils  of  excessive  dependence  is  a  reason- 
able independence.  The  remedy  for  municipal  subjection  is 
municipal  sovereignty.  A  city  has  a  right  to  manage  its 
local  business  without  interference,  and  should  be  free  to  act 
outside  the  distinctive  local  sphere  so  long  as  it  does  not  in- 
fringe a  positive  law  of  state  or  nation. 

The  best  method  of  establishing  Home  Rule  would  be  thru 
Constitutional  provisions: 

Drawing  a  line  between  state  affairs  and  local  interests  as 
clearly  as  the  line  between  state  and  federal  intersts  is  drawn 
in  the  ]^ational  Constitution; 

Excluding  the  legislature  from  the  field  of  local  municipal 
business,  so  that  the  city  may  be  sovereign  in  its  oa\ii  peculiar 
sphere  just  as  the  state  and  nation  are  sovereign  in  their 
spheres;  free  to  act  in  its  own  concerns,  subject  only  to  broad 
limitations  such  as  those  applied  to  states  in  the  federal  con- 
stitution ; 

Affording  proper  safeguards  against  special  legislation,  even 
in  matters  wherein  municipal  life  hierges  into  state  life; 

Guarantying  the  local  selection  of  local  officers; 


428  THE    CITY    FOR    THE    PEOPLE. 

Securing  to  every  city  and  town  the  right  to  do  any  a<  t, 
whatever,  whether  inside  the  field  of  local  sovereignty  or  be- 
yond it,  so  long  as  it  does  not  conflict  with  state  and  national 
law;  reversing  the  present  rule,  and  instead  of  the  principle 
that  a  city  can  do  nothing  without  permission,  establishing 
the  principle  that  a  city  can  do  anything  unless  forbidden — 
a  difference  as  great  as  that  between  servitude  and  liberty; 

And  according  to  every  municipality  the  right  to  frame  its 
own  charter; 

Thus  may  be  secured  a  reasonable  independence  for  muni- 
cipalities from  improper  legislative  control,  but 

Civil  service  reg-ulations, 

The  Initiative  and  Eeferendum  upon  ordinances  and  charter 

provisions. 
And  the  public  ownership  of  monopolies 

must  be  established  also,  else  freedom  from  legislative  bossing 
may  mean  subjection  to  councils,  local  politiciaiis  and  pri- 
vate corporations. 

Under  such  Home  Rule  provisions  each  city  and  town  might 
make  its  own  charter,  choose  its  own  officers  and  govern  itself 
subject  only  to  the  broad  limitations  of  state  and  national  law. 
IS'othing  could  do  more  than  such  local  self-government  for 
the  cause  of  municipal  progress  and  purity.  And  on  that 
cause  hangs  the  future  of  the  Republic.  A  hundred  years  ago 
only  one-thirtieth  of  the  population  of  the  United  States  dwelt 
in  cities.  In  1890  one-third  of  our  people  were  in  cities  of 
more  than  8000  inhabitants.  It  will  not  be  long  before  half 
the  people  live  in  cities,  and  when  we  include  the  towns,  it 
appears  that  municipal  problems  already  affect  directly  at  least 
five-sixths  of  our  people,  and  indirectly,  but  nevertheless  most 
vitally,  all  the  rest. 

Dr.  Shaw,  who  is  probably  the  highest  authority  on  muni- 
cipal government  on  this  side  of  the  sea,  or  perhaps  in  the 
world,  has  expressed  himself  in  these  strong  words  :^ 

0)  In  the  last  few  years  municipal  home  rule  has  been  favored  by  several 
other  writers  and  speakers  of  high  authority;  Dr.  Edward  Everett  Hale, 
Hon.  Seth  Low,  Senator  Fassett.  Prof.  F.  J.  Goodnow  of  Columbia,  Dr. 
James  of  Chicago  University,  and  E.  P.  Oberholtzer  being  among  the  number. 
Hon.  Seth  Low's  address  on  "Municipal  Home  Rule,"  at  Brooklyn,  October 
6.  1882,  Dr.  Hale's  article  In  the  "Cosmopolitan,"  Vol.  16,  p.  736  (1894),  Prof. 
Goodnow's    "Municipal    Home    Rule,"    McMillan    &    Co.,    1895,    Oberholtzer's 


HOME   RULE   FOR   OUR   CITIES.  429 

"Good  government  and  progress  in  our  larger  cities  vnW 
1)6  greatly  aided  by  the  extension  of  their  powers  of  local  self- 
gOYernment,  or  the  establishment  of  municipal  home  rule,  so 
that  the  people  may  feel  that  they  have  their  own  municipal 
welfare  clearly  and  definitely  in  their  o%^ti  hands." 

And  again,  discussing  the  New  York  charter:  ''We  shall 
never  reach  a  ijermanent  basis  in  this  countiy  until  we  have 
attained  simplicity  and  unity,  so  that  the  people  of  a  large 
town  may  feel  that  they  have  their  own  municipal  weal  or  woe 
clearly  and  definitely  in  their  own  hands.  Then  a  strong 
puhlic  opinion  iciU  arise  to  pi'otect  siieh  nninicipal  home 
rule,  and  with  or  -without  constitutional  safeguards,  we  shall 
find  that  municipal  government  vnll  go  on  steadily." 

On  the  way  toward  the  solid  independence  outlined  above, 
a  number  of  partial  reforms  may  be  of  advantage.  When  it 
is  not  possible  to  get  a  whole  loaf,  half  a  loaf  is  better  than 
none. 

A.  Constitutional  provisions  may  be  adopted  covering  part 
of  the  ground.  This  has  been  done  to  a  considerable  extent 
already  as  is  shown  in  the  accompanying  diagrams. 

B.  The  Michigan  Doctrine  may  be  followed  by  the  courts 
of  other  states.  Efforts  to  secure  such  rulings  even  if  unsuc- 
cessful cannot  fail  to  do  good  by  directing  attention  to  the 
fundamental  importance  of  local  self-government  and  the 
weighty  opinions  of  Judge  C<x>ley  and  others. 

C.  Broad  statutes  may  be  passed  giving  cities  larger  powers, 
especially  in  regard  to  the  granting  of  fraucliises,  and  the  right 


article  in  the  "Annals  of  the  Amer.  Academy  of  Political  and  Social  Science," 
the  Fassett  Report,  and  Dr.  Shaw's  '"Municipal  Government,"  already  re- 
ferred to.  are  specially  valuable. 

At  the  convention  of  the  League  of  American  Municipalities,  held  at 
Detroit  In  Aujrust,  1808.  and  containfufr  mayors  and  aldermen  and  other 
officials  from  a  large  number  of  the  leading  cities  of  the  country,  the  principle 
of  municipal  home  rule  was  most  enthusiastically  and  almost  unanimously 
endor.scd;  and  at  the  conference  of  the  National  Municipal  League,  held  at 
Indianapolis,  December.  1898,  a  committee  consisting  of  Dr.  Albert  Shaw, 
Clinton  Rogers  Woodruff.  Professor  Franli  J.  Goodnow,  Horace  E.  Denning, 
Chas.  Richardson.  Professor  Leo  S.  Rowe.  and  Geo.  W.  Guthrie,  reported  in 
favor  of  constitutional  amendments  giving  all  cities  of  25.000  people  the 
power  to  frame  their  own  charters,  restricting  state  action  to  matters  re- 
quiring state  uniformity,  and  forbidding  the  legislature  to  pass  acts  apply- 
ing to  single  cities  or  gi-oups  of  cities  excei)t  by  a  vote  of  the  cities  them- 
selves. The  committee  also  recommends  civil  service  reform,  a  single  conncil 
elected  for  6  years,  concentration  of  all  administrative  power  in  the  mayor, 
separation  of  legislative  and  administrative  powers,  and  constitutional  pro- 
visions preventing  councils  from  granting  franchises  for  more  than  21  years, 
and  requiring  itemized  accounts  from  operating  companies.  Proportional 
representation,  the  initiative  and  referendum  and  the  recall,  and  some  other 
things  are  needed  to  make  the  list  a  perfect  one. 


430  THE   BONDAGE   OF   CITIES 

to  own  and  operate  local  business  enterprises.  A  considerable 
movement  has  taken  place  in  this  direction  in  the  last  few 
years,  but  it  often  requires  a  hard  fight  to  pass  such  bills,  and 
they  are  apt  to  be  naiTOwed  in  scope,  and  their  usefulness  im- 
paired by  amendments  and  limitations  introduced  by  corporate 
influence.  Moreover,  they  are  subject  to  legislative  alter- 
ation or  repeal.  In  spite  of  all  their  imperfections,  however, 
they  are  very  important  aids  while  on  the  way  to  solid  consti- 
tutional measures,  and  the  grov^h  of  public  sentiment  around 
them  gives  them,  in  the  course  of  time,  a  practical  stability 
much  greater  than  that  which  they  possess  theoretically. 

The  following  tables  with  their  explanations  afford  an  indi- 
cation of  the  present  condition  of  municipal  law  on  some  of 
the  most  important  lines: 

In  examining  the  tables  it  must  be  remembered  that  the 
finer  shades  of  legislation  are  not  indicated  in  them.  The 
crosses  in  each  column  represent  general  legislatii^n  of  some 
sort  in  reference  to  the  subject  stated  at  the  head  of  the  col- 
umn. But  the  cross  opposite  Missouri,  for  example,  in  a 
given  colunm  may  represent  a  very  different  law  from  that 
represented  by  another  cross  in  the  same  column  opposite 
Idaho  or  California.  Under  special  legislation  the  provisions 
are  for  the  most  part  quite  similar  down  the  whole  leng-th  of 
each  column,  the  wording  in  many  cases  being  identical;  yet 
even  here  there  are  some  differences,  especially  in  column  B 
(see  below).  It  is  in  columns  A,  K  and  L,  however,  that  the 
widest  variations  occur. 

I.  Constitutional  provisions  requiring  the  local  selection 
of  local  afficei*s  are  of  great  importance.  In  Massachusetts, 
Pennsylvania,  Missouri,  Wisconsin,  etc.,  a  few  counly  officers 
must  be  locally  chosen.  In  Ohio,  Georgia,  etc.,  county 
officers,  in  general,  are  to  be  elected  by  the  people  of  the 
county.  In  Minnesota,  county  and  to\\mship  officei-s  are  to  be 
locally  elected.  In  Kansas,  township  officers,  and  in  Ken- 
tucky, county  and  district  officers,  mayor  and  council  and 
police  judges  in  toA^Tis  and  cities  must  be  locally  elected.  In 
New  York  the  constitution  pro^-ides  that  municipal  officers 
shall  he  elected  hi/  the  electors  of  the   municipality,   or   ap- 


TO    POLITICIAXS    AND    MOXOPOLISTS    MUST    CEASE. 


431 


TABLE  I. 
MUNICIPAL   FREEDOM 

SECURED  BY  CONSTITUTIONAL  PROVISIONS 
(including  amendmeDts  to  date). 


Slates        -^  ~ 

and  dates  of  §  = 

Constitu-     -  ~ 

tions.        ^-5 


—   Z.O     —  — 


r 

^  Maine...l8l9 

C5  N.  H 1889 

M  Vt 1793  CO 

c  Mass 1780  CO 

**•  R.  I  1842  X 

^'  Conn 1875  Xd 

«  N.  Y 18i»5  S 

(g  N.J 1875  Xd 

o  Penna.  ..1874  co 

9   Del 1897  CO 

2  Md 1867  CO 

a  W.Va....l872  cd 

j;  Ohio 1857  co 

C  Ind 18il  D 

5  111 1870  cd 

.  Mich 1850  D 

2  Wise 184H  CO 

!^  Minn....  1857  cd 

Mo 1><75 

0  Iowa 1846 

S  Kans 1859  T 

S  Neb 1875  cd 

«  S.  Dak...l889  cd 

N.  Dak..l889  co 

■g  Va 1869  S 

a  N.  Car...l876  cd 

"  S.  (•ar....l89.=> 

5  Ga 1877  CO 

1  Fla 1885  cd 

»  Ala 1875  cd 

j3  Miss 1S90  Xd 

3  La 1879  cd 

$  Texas  ...1876  cd 

_j  Ark 1874 

a  Teun  ....1870  co 

■^  Ky 1891  S 

^  Mont 18X9  CO 

S  Ida 18'>9  CO 

^  Colo 1^7fi  cd 

«•  Utah 1895  S 

S  Nev  ....  I8H4  cd 

*  Wyo 1889  CO 

^  Orep 1857  CO 

•3  Wash 1890 

^  Cal 187!) 


Forbidding  Special  Legislation. 


:-r=      g 


u  ~Z        c'-ti 


As  to  Franchises  and  Cor- 
porate Powers 


a-2 


=  ®  s 


o  u 


6£S     . 


X— a  provision  on  the  subject  indicated  at  the  head  of  the  column, 
next  page. 


See 


432  jrrxicii'AL  liberty. 

pointed  h/  the  autliorities  thereof.  It  lias  been  held  under 
this  that  police  commissioners  and  similar  boards  are  not  muni- 
cipal officers,  hut  state  officers;  and  may  still  be  appointed  by 
the  governor  or  selected  in  any  way  the  legislature  may  direct. 
(15  N.  y.  532;  36  K  Y.  285.)  But  55  K  Y.  50,  holds  that 
police  commissioners  of  a  city  or  town  are  municipal  officers, 
and  protected  by  the  constitution,  so  that  the  state  cannot 
appoint  them,  except  where  it  combines  ^veral  cities  or  coun- 
ties in  a  metropolitan  police  district,  as  was  the  case  in  15 
N.  Y.  The  Virginia  constitution  requires  the  local  election 
of  officers  of  cities  and  towns.  In  Utah  also  there  is  a  sweep- 
ing provision  requiring  the  election  of  local  officers.  In 
]\Iichigan  and  Indiana,  as  we  have  seen,  the  courts  take  the 
ground  that  the  local  selection  of  local  officers  is  an  inherent 
right  that  exists  without  any  express  provision.  An  attempt 
has  been  made  in  column  A  to  indicate  the  shades  of  enact- 
ment— CO,  meaning  county;  d,  township  or  district;  ct,  county 
and  district  or  county  and  township;  x,  municipal  officers; 
S,  a  sweeping  provision,  and  D  a  sweeping  decision  in  favor  of 
local  selection  of  officers.  My  idea  at  first  was  to  indicate  the 
various  shades  in  e^'ery  column,  but  it  proved  impossible  to  do 
this  in  some  columns  with  any  satisfactory  approach  to  accur- 
acy and  exhaustiveness,  and  so  the  uniform  sign  x  is  used  to 
show  simply  that  the  state  has  a  law  of  the  kind  indicated 
by  the  words  at  the  top  of  the  column,  the  shades  of  legisla- 
tion being  given  in  the  text  accompanying  the  tables. 

2.  Columns  B  and  J  inclusive  relate  to  constitutional 
safeguards  against  special  legislation.  In  many  states  such 
legislation  is  forbidden  for  some  or  all  of  the  specified  pur- 
poses— laying  out  or  vacating  streets,  granting  franchises  to 
railways,  tumpikeSj  fea-ries,  etc.,  creating  corporations  or 
granting  corporate  powei-s,  granting  to  any  corporation,  asso- 
ciation or  individual  the  right  to  lay  down  a  railroad  track,  or 
any  special  or  exclusive  privilege,  immunity  or  franchise  what- 
ever (TIL,  Pa.,  etc.),  creating  municipal  offices  or  prescribing 
their  duties,  creating  or  amending  municipal  charters  or 
regulating  municipal  affairs,  etc.  (See  Pa.,  111.,  Mo.,  Mont., 
Colo.,  Wy.,  etc.) 


LOCAL  GOVERNMENT  BY  THE  LOCAL  PEOPLE.       433 

It  is  a  marked  advance  to  limit  the  legislative  power  of  pass- 
ing local  and  special  acts,  for  the  chance  of  enacting  bad 
general  laws  without  arousing  effective  opposition  is  very 
much  less  than  in  the  case  of  special  laws  which  affect  fewer 
people.  Yet  great  as  the  advantage  is,  there  are  some  dis- 
advantages. First,  the  legislature,  if  left  free  to  classify 
municipalities,  may  be  able  to  attain  almost  or  quite 
the  same  individual  and  specific  action  under  "general 
legislation"  (or  such  as  affects  all  the .  cities  of  the  same 
class)  that  it  formerly  attained  by  means  of  what  is 
called  "special  legislation."  To  prevent  this  the  constitution 
should  specify  the  classes  into  which  municipalities  are  to  be 
divided.  Second.  A  city  or  town  may  desire  special  legisla- 
tion in  its  behalf,  of  a  perfectly  proper  sort,  in  cases  where  it 
does  not  seem  best  to  pass  a  general  law.  To  provide  for  such 
cases,  a  pro^asion  should  be  inserted  allowing  special  legisla- 
tion upon  petition  of  the  municipality  or  municipalities 
affected,  a  favorable  referendum  vote  in  such  municipalities 
being  required  either  on  the  petition  or  on  the  law  that  may  be 
secured  by  it. 

The  constitution  may  require  notice  of  special  legislation  to 
be  sent  to  the  municipality  affected,  and  re-enactment  of  the 
law  by  the  legislature  if  the  city  or  town  objects  to  it — a  sort 
of  mild  municipal  veto  on  local  legislation  (as  in  N.  Y.)  In 
some  constitutions  notice  must  be  given  of  the  intention  to 
introduce  a  special  bill  so  that  those  who  object  may  be  pre- 
pared to  fight  the  measure,  but  no  veto  or  re-enactmen.  is  pro- 
vided for  (N.  J.,  Pa.,  N".  Car.,  Fla.,  etc.)  The  notices  thus 
provided  for  are  very  important  as  a  means  of  preventing  the 
practically  secret  passage  of  special  acts,  which  is  one  of  the 
prominent  evils  of  the  existing  system  in  several  of  our  states. 

Sometimes  it  is  provided  that  there  shall  be  no  special  legis- 
lation in  any  ease  where  a  general  law  is  applicable.  (W^  \a., 
Minn.,  la.,  Kans.,  S.  Dak.,  S.  Car.,  Ga.,  Ala.,  Miss.,  La.,  Tex., 
Ky.,  Mont.,  Colo.,  Nov.,  Wy.j  Wliere  the  constitution  also 
says,  as  in  Minnesota  and  ]\Iissouri,  that  the  question  "whether 
a  general  law  could  have  been  made  applicable  in  any  case  is 
hereby  declared  a  judicial  question,"  the  provision  is  good; 

28 


434  THE   CITY    FOR   THE    PEOPLE. 

otherwise,  it  is  of  little  value,  for,  in  the  absence  of  such  ex- 
press declaration,  the  applicability  of  a  general  law  is  held  to 
be  a  matter  for  the  legislature  to  decide  (113  111.  315,  8  Col., 
122,  19  Kans.  303,  29  Ind.  409,  etc.). 

In  column  I,  New  Jersey  provides  that  corporations  shall 
not  be  created  by  special  act,  but  "corporations"  is  held  not  to 
include  municipal  corporations.  In  several  states  the  pro- 
vision against  creating  corporations  by  special  act  expressly 
excepts  municipal  corporations.  (Md.,  Mich.,  'N.  Oar.,  Ala., 
Mont.,  Col.,  Oregon — Wis.  excepts  cities.) 

3.  The  principle  of  local  consent  is  recognized  in  fifteen 
constitutions.  Massachusetts,  Pennsylvania,  South  Carolina 
a»d  Wyoming  require  local  consent  as  a  prerequisite  to  the  in- 
corporation of  a  city.  'New  York,  West  Virginia,  Illinois, 
Missouri,  JSTebraska,  South  Dakota,  South  Carolina,  Georgia, 
Alabama,  Kentucky,  Idaho,  Colorado  and  Wyoming,  require 
local  consent  for  the  construction  of  a  street  railway.  In  some 
states  the  provisions  are  broader.  Kentucky  does  not  permit 
the  construction  of  any  street  railway,  gas,  water,  steam  heat- 
ing, telephone  or  electric  light  system  in  city  or  town  without 
its  assent.  South  Carolina  requires  local  consent  for  street 
railways,  telegraph,  telephone,  electric  light,  water  and  gas. 
Wyoming  requires  such  consent  for  the  fii-st  four  just  named, 
and  South  Dakota  for  the  first  three. 

4.  Constitutional  provisions  transferring  from  the  state  to 
the  municipality,  the  power  to  grant  street  railway,  telephone, 
water,  gas,  electric  light  and  other  local  franchises,  would  be 
very  valuable. 

5.  Also  provisions  establishing  the  right  of  cities  and  towns 
to  own  and  operate  water  works,  gas  works,  electric  light 
plants,  telegraph  and  telephone  systems,  street  railways,  etc., 
best  when  the  clause  is  a  sweeping  one  that  gives  all  munici- 
palities the  right  to  own  and  operate  any  public  work  or  ser- 
vice on  the  people's  vote  to  that  effect,  proper  provision  being 
made  respecting  the  purchase  of  existing  plants.  By  South 
Carolina's  constitution  (1895)  cities  and  towns  are  empowered 
to  build  or  buy  water  works  or  light  plants  and  supply  the 
inhabitants  on  a  majority  vote  of  the  people.  (See  oomments 
on  Table  II.) 


HOME   KULE   FOR   OUE   CITIES.  435 

6.  The  last  colmnn  is  probably  the  most  important  of  all 
in  its  bearing  on  future  progress.  The  subject  has  already 
been  dealt  with  in  the  text,  but  a  very  condensed  summary 
may  be  useful  at  this  point.  (For  the  Freehold.  Charter 
amendments  in  full  see  Appendix  I.) 

Five  states  have  given  municipalities  the  right  to  make  their 
own  charters.  Mo..  1875;  Cal.,  1879;  Wash.,  1890;  Minn.,  1896,  by 
Constitutional  provision,  and  La.  by  statute  in  1896.  In  Mo.  the 
provision  applies  to  cities  over  100,000  population,  in  Washington 
to  cities  over  20,000;  in  California  to  cities  over  3,500;  and  in 
Minnesota,  to  all  municipalities.  The  Louisiana  statute  adopts  a 
rule  precisely  ojDposite  to  the  Missouri  principle,  and  permits  all 
municipalities  except  New  Orleans  to  make  their  own  charters. 

In  Missouri  the  city  elects  thirteen  freeholders  who  prepare  a 
charter  which  is  submitted  to  the  people,  and  if  ratified  by  four- 
fifths  of  the  qualified  electors  voting,  it  becomes  the  charter  of  the 
city.  St,  Louis  was  given  special  authority  to  adopt  a  charter  by  a 
majority  vote.  Amendments  may  be  submitted  by  the  legislative 
authorities  of  the  city,  and  adopted  by  a  two-thirds  referendum 
vote. 

In  Minnesota,  the  charter  is  prepared  by  a  board  of  fifteen  free- 
holders appointed  by  the  district  judge  and  must  be  adopted  by  a 
four-sevenths  vote  of  the  people;  amendments  by  a  three-fifths  vote. 
By  a  statute  of  1897  freeholders  are  to  be  appointed  whenever  eight 
per  cent,  of  the  voters  of  the  city  or  town  petition  to  that  effect. 
And  the  legislature  of  1897  proposed  a  new  amendnxent  to  the  con- 
stitution providing  charter  amendments  should  be  submitted  to  the 
people  on  a  five  per  cent,  petition  of  the  voters. 

In  Washington,  the  legislative  authority  of  the  city  may  order 
the  election  of  fifteen  freeholders  to  prepare  a  charter  to  be  adopted 
by  a  majority  vote  of  the  people.  Amendments  proposed  by  coun- 
cils and  adopted  by  majority  referendum  vote.  By  statute  the  city 
council  must  order  an  election  of  freeholders  upon  a  petition  of 
one-fourth  of  the  voters  of  the  city. 

In  California,  fifteen  freeholders  are  elected  to  make  the  charter 
which  must  be  adopted  by  a  majority  vote  at  the  polls,  and  ap- 
proved by  the  legislature.  Amendments,  at  intervals  of  not  less 
than  two  j^ears,  submitted  by  the  legislative  authority  of  the  city 
and  ratified  by  a  two-thirds  vote  ai  the  polls,  and  approved  by  the 
legislature. 

In  Louisiana,  on  petition  of  a  majority  of  the  property  ownei^ 
of  any  city  or  town  (except  New  Orleans)  praying  a  referendum 
on  a  new  charter,  a  copy  of  which  must  accompany  the  petition, 
the  mayor  and  council  shall  submit  the  proposed  charter  to  a 
referendum  vote,  and  if  adopted,  it  is  to  be  the  organic  law  of  the 
municipality. 

In  all  the  states  named  the  home-made  charters  are  subject  to 
the  laws  and  constitution  of  the  state. 


436 


THE   BONDAGE   uF   CITIES 


X=Statute  Provision 
c=Congtitutional  Proyision 
C=broad       " 
XC=both  Stat,  and  Const.  Pro. 

■ 

TAB 

MUNICIPAL 

ACCORDED  BY  LEGISLATIVE  POLICY 

Conferring  local  power  to  establish,  construct, 

build,  buy,  organize,  own, 

1    t-   1 
1     1 

'          1    ^ 

J3 

o 

s 

o 

la 

u  a 

1  BE 
3 

05   . 

It 

w 

13 

•IS 

as 

<u 

■fc 

.  1 

Franchises 

States. 

a 

r?. 
m 

Jfel 

'.  ,,  ■     ~ 

X          X      i 

X          X      ' 

p 

X 
X 

p 

X 
X 

X 

X 
X 

\     X 

!   X 

X 
X 

X 
X 
X 
X 

O  N.H 

X 

6i  Vt, 

rR  Mass 

X          X 
X      1     X 
X           1 
X     1     X 

X 
X 

X 
X 

.  R.  I...; 

^  Conn 

X 

! 

^  K  Y  

X     I    X 
X          X 
X          X 

X 

X 
X 
X 

X 

X 
X 

X 

1 

X 

X 
X 

X 

Xc    1     X 

S  N.J 

X      1     X 
X      1 

W  Penna 

^  Del 

X 

S  Md 

X   1 

XIX          X 

X 

Xc         X 

*  W.Va 

ja  Ohio 

X          X     :     X 
X      1     X      1     X 
X     1     X     1     X 

X     i    X     1    X 
XXX 
X      '     X           X 

X 
X 

p 

X 
X 
X 

X 
X 

p 

X 
X 
X 

X 
X 

X 

X 
X 

X 
X 
X 

X          X 
X          X 
X          X 
X          X 
X 
X          X 

X     1    X 
X          X 
xc  1     X 
•    X     1 
X          X 
X          X 

t  Ind 

3  111 

"^  Mich 

2  Wise 

S  Minn 

Mo 

XX          X 
X      j     X          X 
XXX 
XX          X 
X          X     , 
X          XX 

X 
X 
X 
X 

p 

X 
X 
X 
X 

p 

X 

X 

X          X 

X          X 

X 

X           X 

X      1     X 

c     1     X 

o  Iowa 

X      1     X 
X          X 

2  Neb 

a  8.  Dak 

N.  Dak 

XC 
X          X 

*.  Va 

X 
X 
X 
X 
X 

X 

c 
X 
X 

e 
X 

X 

X 

X 

X 
X 

X 

a  N.Car 

W  S.  Car 

X 
X 
X 

X 
X 
X 

5  Ga 

c         X 
X     1     X 

g  Fla. 

w  Ala 

X         X     !    X 

X 

X      1     X          X 

XX           X 

XXX 

X          XX 

X 

p 

X 
X 

X 

p 

X 

X 

X     j     X 

X 
X 

1   X 

X     1     X 

1 

5  La 

,2  Texas 

X  ;  X 

X     '    X 

C          Xc' 

.  Ark 

2  Tenu 

a  Ky 

^  Mont 

8  Ida 

X       :      X              X 

X     1     X          X 
X      i     X          X 
X      1     X          X 

CO      '      CO      1 

X          X      1     X 

^  i 

X 
X 

X  ! 

p 

X    I 

1 

X 

X 
CO 

X 

X 

X 
X 
X 
X 

X     '     X 
xc  1    X 

xc     X 

X    ;    X 

X 

xc     X 

^  Colo 

•  Utah 

5  Nev 

*  Wyo 

1    '^ 

X                      X 
X           XX 

X 
X 
X 

X 
X 

X 
X 

X 
X 

X 

1 
X     i     X 

X 
X          X 

S  Wash 

3  Cal 

1 

''  1 

Under  these  provisions  St.  Louis,  Kansas  City,  San  Francisco, 
Sacramento,  Oakland,  Los  Angeles,  Stockton,  San  Dieg-o,  Seattle, 
Tacoma,  etc,,  have  established  charters  of  their  own  making-.  The 
St.  Louis  charter  gives  the  city  power  to  grant  franchises,  construct 
Btreet  railways,  buy  and  hold  property,  real  and  personal,  to  be 


TO    POLITICIANS    AND    MOXOPOLISTS    MUST    CEASE. 


437 


LE   11. 

FREEDOM 

EXPRESSED  IN  GENERAL  LAWS. 


co=County 

P=power  to  proTide  for  lighting 
l=a  law  witli   very  Important 
exceptions 


operate,  manage,  control,  deal  with,  grant,  &c. . 

Provid'g  for 

States. 

1 

1 

1 

JS 

n 

"a. 
c 

s 

1 

a 

a 

3 

o 
u 

1 

3„- 

3  O 

s-.g 

■-5~ 

3  a 

il 

—  —  o 

5  B-i 

Debt  Limit 

<or 

Municipalities 

fixed  by 

Constitution 

or  Statute. 

Maine 

N.  H 

X 
X 
X 
X 
X 
X 

X 
X 
X 
X 
X 
X 

X 
X 
X 
X 

X 

X 

X 
X 

X 
X 
X 
X 
X 
X 

X 
X 
X 
X 
X 
X 

CO 
CO 
X 
CO 

X 

X 
X 

1 

X 

X 
X 
X 
X 
X 
X 

K  (const.) 

Vt 

Mass , 

2  &  2y/,  (slat.) 
3f;  (Stat.) 

R.  I 

N.  y 

X 
X 
X 
X 

X 

X 
X 
X 

X 
X 
X 

X 

X 
X 

X 
X 

X 

CO 
X 
X 

CO 

X 

CO 

CO 
CO 

X 

1 

X 
X 

X 

X 
X 
X 

X 

1(K  (const.) 

N.  J 

Penna 

7^  cons.  2f,  Stat 

Del 

Md 

W.Va 

Ohio 

X 
X 
X 
X 
X 
X 

X 
X 
X 
X 
X 
X 

X 
X 

X 
X 
X 

X 

X 

X 
X 

X 
X 

X 
X 
X 

X 

CO 
CO 
X 
X 

CO 

X 

CO 

X 
X 
CO 
X 

X 
X 
X 
X 
X 
X 

X 
X 
X 
X 
X 
X 

Ind 

2^  (const.) 
5^,  (const.) 

Ill 

Mich 

Wise 

5^  (const.) 
I(K;  (slat.) 

M*nn 

Mo 

X 
X 
X 
X 
X 
X 

X 
X 
X 

X 
X 
X 
X 

X 

X 

X 

X 
X 

X 

X 
X 
X 

X 

X 
X 
X 
X 

CO 
CO 

X 
X 
X 
X 
X 
X 

1 
1 

X 
X 

X 
X 
X 
X 
X 
X 

5^:.  (const.) 

Eans 

lOr-  2d  cl.  (stat.) 
KKc  -f  (Stat.) 
5f,  -f-  (const.) 
.V:-  —  (const.) 

Neb 

S.  Dak 

N.  Dak 

Va 

X 
X 
X 
X 
X 
X 

X 

X 
X 

X 

X 

X 
X 

X 
X 

CO 
CO 
CO 
CO 
X 

CO 

X 
CO 

X 
CO 
CO 
X 

X 
X 
X 
X 
X 

X 
X 
X 
X 
X 
X 

N.Car 

I'i  (stat ) 

g.  Car 

Ga 

(const.) 

Fla 

Ala 

Miss 

X 

X 
X 
X 
X 

X 

X 

X 
X 

X 

X 
X 

X 
X 

X 

X 
X 

X 

CO 

CO 
CO 
CO 
X 

X 

X 
X 
CO 

X 

X 

X 
X 

X 

X 

X 
X 
X 
X 

La 

Texas 

Ark 

Tenn 

Ky ^.... 

Mont 

X 
X 
X 
X 
X 
X 

X 
X 
X 

X 
X 

X 
X 
X 
X 

X 

X 

X 
X 
X 
X 

X 

X 
X 
X 
X 

X 

CO 

X 

CO 

X 

CO 

X 

X 

CO 
X 
X 

CO 

X 

X 
X 
X 
X 

CO 

X 

X 
X 
X 
X 

X 

3'^  -r  (stat.) 
iO'i  (Ijond  stat.) 
;r=  T-  (const.) 

Ida 

Colo 

Utah 

Nev 

Wyo 

2<i  +  (const.) 

Ore 

X 
X 
X 

X 
X 

X 

X 
X 

X 
X 

CO 
X 
X 

CO 

X 
X 

X 

1 

X 
X 
X 

82,500  (stat.) 
b^  (stat.) 

Wash 

CaL 

used  for  the  erection  of  water  works  or  gas  works,  to  supply  the 
city  with  water  and  light,  for  the  establishment  of  hospitals  or  poor 
houses,  etc.,  or  for  any  other  purpose;  secures  the  local  election  or 
appointment  of  the  city  officers  required  by  the  charter;  and  pro- 
vides that  amendments  to  the  charter  shall  be  submitted  to  the 


438  MUNICIPAL  LIBERTY. 

people  separately.  The  people  have  no  initiative,  however,  as  to 
amendments,  and  neither  initiative  nor  referendum,  as  to  ordi- 
nances. 

The  banner  charter  of  all  is  the  one  adojited  by  the  voters  of 
San  Francisco  in  May,  1898.  It  contains  strong  ci^^l  service  rules, 
declares  for  public  ownership  and  operation  of  street  railways, 
water,  gas,  electric  light  plants,  telephone  sj^stems,  etc.,  announces 
the  policy  of  gradual  absoiTation  of  all  such  monopolies,  and  pro- 
vides for  a  popular  initiative  and  referendum  upon  these  questions, 
and  upon  ordinances  of  all  sorts  and  upon  amendments  to  the 
charter,  upon  petition  signed  by  a  number  of  voters  equal  to  fifteen 
per  cent,  of  the  votes  cast  at  the  last  preceding  election. 

The  charter  is  not  equally  good  in  all  its  parts,  but  these 
admirable  provisions  make  it  possible  for  the  people  to  mould  the 
charter  easily  to  any  form  they  desire. 

The  people  of  San  Francisco  appear  to  have  their  own  destiny 
more  completely  in  their  own  hands  than  the  people  of  any  other 
large  city  in  the  country.  Their  control  is  subject  only  to  general 
laws,  and  the  approval  of  the  legislature  to  charter  amendments, 
which,  it  is  said,  it  not  likely  to  be  withheld  in  the  case  of  any 
reasonable  amendment. 

In  Table  II,  as  in  the  former  one,  two  crosses  in  the  same 
column  may  represent  widely  different  laws;  both  -will  be 
general  laws  relating  to  the  subject  at  the  head  of  the  column, 
but  one  law  may  be  much  broader  than  the  other.  The  mass 
of  statute  law  behind  this  table  is  too  great  for  anything  like 
full  treatment  here.  We  can  only  comment  briefly  on  a  few 
of  the  more  important  columns,  and  note  a  few  general  acts 
that  fall  outside  the  limits  of  the  table. 

One  of  the  interesting  columns  is  that  which  relates  to  the 
limit  of  municipal  indebtedness  mth  its  frequent  exceptions 
in  favor  of  water  works,  and  its  expandibility  by  special  vote, 
as  in  i^orth  Dakota,  where  by  the  constitution  the  municipal 
debt  is  not  to  exceed  5  per  cent,  on  the  taxable  property,  ex- 
cept that  a  city  may  expand  the  limit,  3  per  cent.  (i.  e.,  make 
it  8  per  cent.)  by  a  two-thirds  vote,  and  neather  limit  is  to  pre- 
vent the  raising  of  funds  to  establish  water  works.  There  are 
also  statute  provisions  requiring  a  referendum  on  the  issue  of 
bonds  for  buildings,  fire  apparatus,  Avater  works,  sewers,  street 
improvements,  etc. 

Another  attractive  part  of  the  Table  is  that  relating  to  local 
selection  of  local  officers,  especially  the  police  column,  and  the 


LOCAL  GOVERNMENT  BY  THE  LOCAL  PEOPLE.       439 

results  of  experimenting  witii  state  boards  and  metropolitan 
police  laws  in  reference  (o  l^ew  York  and  Boston  and  other 
large  cities  in  various  states.  The  matter  of  jails,  poorhouses, 
cemeteries  and  hospitals  is  very  important,  and  the  question 
of  schools,  libraries,  parks  and  baths,  which  may  do  much  to 
relieve  the  pressure  on  the  aforesaid,  is  also  of  vital  moment. 
Education  is  undeniably  a  state  interest.  But  it  is  also  a  muni- 
cipal interest.  The  state  properly  determines  the  broad  lines 
of  policy.  The  municipality  properly  can-ies  on  the  schools 
upon  those  lines,  with  wide  discretion,  local  ownership  and 
large  control.  The  state  may  fix  a  minimum,  co-ordinate  all 
parts  of  the  system  and  stimulate  progressive  movement,  but 
the  city  or  to^vn  should  be  free  to  go  as  far  beyond  the  mini- 
mum as  it  can,  and  have  large  liberty  to  express  its  individu- 
ality. 

The  difference  of  quality  in  the  measures  behind  the  crosses 
in  these  columns  is  sometimes  very  great.  For  example,  in 
New  York  free  public  baths  must  be  established  in  1st  and 
2d  class  cities.  In  Massachusetts,  towns  map  establish  public 
baths.  So  in  most  cases  the  provision  regarding  the  establish- 
ment of  libraries  is  permissive,  but  in  Michigan  a  free  library 
must  be  established  in  every  township,  and  the  clause  is  in  the 
constitution.  The  difference  in  quantity  is  also  considei*able 
as  well  as  in  quality  and  force.  Sometimes  the  provision  only 
applies  to  one  or  two  classes  of  municipalities,  as  just  noted  in 
the  'New  York  bath  law;  probably  the  smaller  cities  of  i^ew 
York  state  are  not  so  much  in  need  of  compulsory  washing  as 
dusty  New  York  and  smoky  Buffalo.  As  a  rule,  however,  the 
whole  group  we  are  studying  (including  all  cities,  towns  and 
villages)  is  behind  each  cross. 

The  most  interesting  columns  of  all  are  those  relating  to  the 
streets  and  the  local  services  which  usually  involve  street  fran 
chises;  as  gas,  electric  light,  street  railways,  telegraph  and 
telephone  systems,  local  consent  and  power  tO'  grant  franchises. 
It  would  be  profitable  to  take  each  state  in  order,  bring  to  a 
focus  the  substance  of  all  its  provisions  on  these  subjects  and 
then  note  unities  and  contrasts  and  draw  conclusions.  Space, 
however,  will  not  i>ennit  us  to  vrrite  out  the  record  fully  here 


440  THE  CITY  FOR  THE  PEOPLE. 

"We  \nll  say  a  word  about  street  railways  and  telephones,  and 
then  take  municipal  lighting  and  local  control  of  franchises 
for  a  somewhat  fuller  treatment,  choosing  these  subjects  for 
detiiiled  discussion  because  they  represent  the  area  of  greatest 
movement — most  rapid  advance  toward  municipal  liberty  in 
the  last  few  years. 

In  five  states  there  are  general  laws  empowering  municipali- 
ties to  own  and  operate  street  railways.  In  Minnesota,  any 
city  or  village  may,  on  a  two-third  referendum. vote,  buy  and 
operate  street  railways.  In  California,  the  power  to  build  or 
buy,  OAvn  and  operate  street  railways  is  given  to  6th  class  cities 
(those  of  less  than  3,000  inhabitants).  The  same  full  power 
is  conferred  in  Indiana  upon  cities  of  35,000  people  or  more, 
belongs  to  every  city  council  in  Utah,  and  to  every  incorpor- 
ated city  and  town  in  Washington.  (See  Laws  of  1897,  Chap. 
112,  and  Washington  "Codes  &  Statutes,"  1897,  §1076.) 

In  11  states  there  are  general  laws  authorizing  municipal 
telegraphs  or  telephones  or  both,  and  in  6  of  the  states  the 
power  is  commercial.  Maine,  Massachusetts  and  Yeruiont 
give  their  towns  a  general  right  to  put  up  telegraph  and  tele- 
phone wires  for  their  own  use.  North  Dakota  and  Utah  allow 
cities  to  erect  municipal  fire  signals.  (Cities  would  have  this 
right  anyway  under  the  general  police  power,  without  any 
specific  law  either  general  or  special.)^    In  Kentucky,  3d  class 

(')  It  ts  well  to  remember,  In  dealing  with  Tabic  II,  that  the  absence  of 

feneral  legislation  does  not  always  indicate  the  absence  of  municipal  power, 
'or  example,  some  states  have  no  general  laws  conferring  on  cities  or  towns 
the  right  to  establish  fire  departments,  yet  it  is  practically  a  universal  fact 
that  cities  and  towns  have  that  right  under  special  provisions  of  their 
charters  or  as  an  implied  authority  under  the  broad  power  to  provide  for  the 
safety  and  welfare  of  the  community.  (Dillon,  §143.)  Perhaps  authority  to 
establish  a  telegraph  or  telephone  system  for  the'  use  of  city  police  and  other 
oflScials  might  also  be  implied  under  the  general  police  power.  Markets  may 
be  established  by  municipalities  under  Implied  authority  based  on  ancient 
usage.  (23  Pick.  71,  C.  J.  Shaw.)  Power  to  establish  cemeteries  and  hos- 
pitals will  doubtless  be  implied  from  the  general  welfare  or  police  clause 
usual  in  municipal  charters,  and  I  think  the  power  to  establish  public  parks 
and  bath  houses,  which  may  help  to  make  hospitals  unnecessary,  ought  also 
to  be  Implied  from  the  said  clause.  The  lighting  of  streets,  being  a  measure 
strongly  favoring  safety  and  morality,  should  fall  in  the  same  class. 

A  municipality  having  power  to  pass  ordinances  respecting  the  police  of 
the  place,  and  to  preserve  health,  is  authorized  as  a  sanitary  and  police 
regulation,  to  procure  a  supply  of  water  and  niav  bore  an  artesian  well  or 
take  any  other  requisite  steps.  (Dillon,  §146,  8  Mich.  458;  66  Ind.  396;  31 
Ala.  542.)  But  while  the  right  to  establish  water  works  is  within  the  ordi- 
nary broad  charter  powers  and  needs  no  express  grant,  yet  it  Is  subject  to 
arbitrary  revocation  by  the  legislature  at  any  time.  For  example,  the  city 
of  Memphis  spent  $30,000  getting  plans,  etc..  for  water  works,  then  the 
legislature  granted  a  private  company  the  exclusive  right  to  build  water 
works  in  Memphis.  This  was  held  to  revoke  the  city's  right,  altho  it  had 
begun  to  build.  (Memphis  v.  Memphis  Water  Co.,  5  Heisk.  495.1  For  gas, 
electric  light,  street  railway,  telephone  and  other  plants,  for  serving  the 
inhabitants  generally,  there  Is  no  doubt  that  authority  will  not  be  implied, 


HOME   RULE   FOR   OUR   CITIES.  441 

cities  (8,000  to  20,000)  may  supply  inhabitants  with  tele- 
phone service.  In  TV^ashington,  3d  class  cities  (1,500  to  10,- 
000)  and  towns  (all  municipalities  of  less  than  1,500  inhabi- 
tants) hare  authority  "To  permit  under  such  restrictions  as 
they  may  deem  proper,  the  laying  of  railroad  tracks  and  the 
running  of  care  drawn  by  horses,  steam,  electricity  or  other 
power  thereon,  or  the  laying  of  gas  and  water  pipes  in  the 
public  streets,  and  io  construct  and  maintain  and  to  permit 
the  construction  and  maintenance  of  TELEGRAPH,  TELE- 
PHONE (and  electric  light)  lines  therein."  (Track  and  Pipe 
clause,  Codes  &  Statutes,  1897,  §938,  13.)  :N'ote  that  the 
general  charter  laws  for  1st  class  cities  (those  over  20,000)  and 
2d  class  cities  (those  between  10,000  and  20,000)  do  not  con- 
t-ain  the  above  clause.  2d  class  cities,  however,  in  common 
with  3d  class  cities  and  toicns  "may  purchase,  leceive,  have, 
t-ake,  hold,  lease,  use  and  enjoy  property  of  every  name  and 
description,  and  control  and  dispose  of  the  same  for  the  com- 
mon benefit."  One  not  familiar  with  legal  ways  of  doing 
things  might  think  that  this  would  cover  the  telephone  and 
everything  else,  and  it  might  be  so  held  in  court.  If  such  a 
grant  of  power  stood  alone  it  would  be  very  broadly  construed, 
but  as  it  is  accompanied  by  a  long  enumeration  of  powers  to 
establish  water  works,  hospitals,  docks,  etc.,  the  courts  may 
construe  the  broad  power  in  reference  to  the  enumeration  and 
hold  that  the  broad  clause  gives  authority  to  acquire  and  hold 
property  of  all  sorts  when  needful  for  the  specific  purposes 
named  in  the  express  enumeration  of  powei*s. 

In  California,  3d  class  cities  (15,000  to  30,000)  have  the 
same  Track  &  Pipe  clause  as  in  Washington  except  that  the 
italicized  words  and  those  in  parenthesis  are  omitted — 4th, 
5th  and  6th  class  cities  (which  three  classes  include  all  munici- 
palities under  15,000  inhabitants)  have  the  Track  &  Pipe 
clause,  italicized  words,  and  all  except  the  parenthesis.  1st 
class  cities,  or  those  over  100,000,  have  no  "Track  &  Pipe" 
clause  except  this:  "To  permit  the  laying   down   of  railroad 

that  special  requests  are  apt  to  meet  with  strenuous  opposition  and  frequent 
defeat,  and  that  no  substantial  liberty  In  these  directions  Is  possessed  by 
municipalities  in  the  absence  of  general  laws  or  constitutional  provisions. 
The  same  thing  is  true  in  respect  to  the  columns  that  deal  with  franchises, 
local  consent  and  power  to  grant. 


442  THE  BONDAGE  OF  CITIES 

tracks  and  iiinmng  of  cars  thereon  along  any  street,  for  the 
sole  purpose  of  excavating  and  filling  in  a  street,  and  for 
such  limited  time  as  may  be  necessary  for  the  purpose  afore- 
said and  no  longer."  The  only  power  such  cities  have  under 
general  law  to  construct  and  operate  lines  for  the  transfer  of 
intelligence  by  wire,  is  to  maintain  fire  alarm  and  police  tele- 
graphs in  the  city  or  city  and  county. 

We  find,  therefore,  that  in  California,  municipalities  under 
15,000  have  unrestricted  power  to  build  and  operate  telegraph 
and  telephone  systems,  but  for  larger  places  there  is  no  general 
pro^dsion  authorizing  anything  more  than  a  fire  alarm  and 
police  telegraph.  The  law  so  exactly  min'ors  the  interests  of 
the  corporations  that  one  cannot  help  having  a  suspicion  that 
municipalization  of  the  telephone  is  not  permitted  in  the  large 
cities  hecaiise  the  private  companies  want  to  keep  those  cities 
for  themselves,  while  municipalization  is  permitted  in  small 
places  because  there  is  little  or  no  inducement  for  the  big 
corporations  to  go  there — they  can  use  their  money  "to  better 
advantage"  in  the  larger  cities. 

In  Minnesota,  any  city  or  village,  on  a  2/3  referendum 
vote,  may  buy  and  own  and  operate  a  telephone  plant.  And 
in  Indiana,  a  general  law  provides  that  any  city  of  more  than 
35,000  inhabitants  may  build  or  buy  and  operate  telegraph 
or  telephone  lines  to  serve  the  city  and  its  inhabitants,  or  may 
purchase  and  hold  a  majority  of  the  stock  of  any  corporation 
organized  for  such  purpose.     (For  AVisc.  see  Appendix  II,  U.) 

MUNICIPAL  LIGHTING  LAWS. 

"We  come  now  to  municipal  ownership  of  lighting-plants 
and  will  then  consider  local  control  of  franchises.  In  dealing 
with  gas  and  electric  light,  we  shall  try  to  give  an  idea  of  the 
provisions  that  go  with  the  light  laws;  so  that  they  may  be 
seen  in  true  relations  to  their  surroundings.  We  shall  find 
that  this  method  will  lead  us  by  almost  insensible  gradations 
to  the  study  of  local  consent  and  powei*s  of  grant. 

In  Maine,  Vermont,  Rhode  Island,  Delaware,  Maryland, 
South  Dakota,  Virginia,  North  Carolina,  Alabama,  Louisi- 
ana, Arkansas,  Nevada  and  Wyoming,  there  appears  to  be 


TO    POLITICIANS    AND    MONOPOLISTS    MUST    CEASE.  443 

DO  general  legislation  permitting  cities  and  towns  to  own  and 
operate  gas  or  electric  light  plants,^ 

New  Hampshire,  Illinois,  North  Dakota  and  Texas  have 
general  laws  allowing  municipalities  to  provide  light  for 
streets.  Under  this  authority  a  municipality  may  build  works 
of  its  own  or  contract  with  others  to  light  the  sti"eets.  (Levia 
V.  N'ewix>n,  75  Fed.  884.) 

In  Idaho,  a  city  or  village  may  provide  light  for  public  pur- 
poses and,  by  the  laws  of  1897,  may  grant  exclusive  gas  fran- 
chises to  light  the  streets. 

In  New  York,  gas  may  be  furnished  for  public  use  by  any 
village  owning  water  works. 

In  Ohio  the  law  permits  any  city  or  town  to  erect  or  pur- 
chase gas-works  whenever  the  council  deems  it  expedient.^ 
And  a  city  may  procure  its  own  gas-works,  and  supply  the  city 
and  its  citizens,  altho  a  gas  company  incorporated  before  this 
law  was  enacted  is  in  operation  in  the  city  and  is  not  in  any 
default.  The  construction  of  gas-works  by  the  city  under  such 
a  law  does  not  impair  the  obligation  of  contract.  The  gas 
companies  took  their  charters  subject  to  such  contingencies, 
which  might  arise  at  any  time  by  the  exercise  of  legislative 
power  to  authorize  municipal  works.^     (See  Appendix  II,  U.) 

In  Georgia,  a  town  or  village  may  erect  gas  works.  In 
Oregon,  any  city  or  to^vn  may  build  gas  works.  In  Montana, 
all  municipalities  may  build  gas  or  electric  light  works,  and  in 
Mississippi,  all  municipalities  may  buy  gas  or  electric  light 
works. 

Connecticut  gives  all  municipalities  the  right  to  build  or 
buy  gas  or  electric  light  works  and  sell  to  the  citizens.  No. 
115  of  Michigan's  laws  for  1891  gave  any  city  or  incorporated 
village  the  right  to  build  or  buy,  maintain  and  operate^  works 
to  supply  the  city  or  village  and    its   inhabitants   with    gas, 


(')  I  say  it  "appears  to  be"  because  it  Is  not  easy  to  be  absolutely  certain 
about  a  negative  relating  to  large  masses  of  miserably  indexed  statutes. 
Great  care  has  been  taken  and  every  volume  of  statutes  has  been  examined 
under  30  odd  topics  or  Index  heads.  Still  some  pertinent  facts  may  have 
escaped  the  notice  of  the  veriter  or  his  assistants,  and  if  any  reader  discovers 
an  error  of  omission  or  commission,  it  will  be  appreciated  as  a  favor  if  he 
will  call  attention  to  it  by  a  line  to  the  writer  at  Boston  University  Law 
Bchool. 

(n  Ohio  Statutes,  Revis.  of  1897,  8^2486-7;  State  v.  Cltv  of  Hamilton,  47 
Ohio  St.,  52;  Hamilton  Gas  Light  Go.'  v.  Hamilton  City,  146  U.  S.,  258,  265-6 
(1892). 

(')  Hamilton  Gas  Light  Co.  v.  Hamilton  City,  146  U.  S.,  258,  268  (1892). 


444  MUNICIPAL  LIBERTY. 

electric  or  other  light.  On  petition  of  100  voters  the  common 
council  or  board  of  trustees  must  submit  to  a  referendum  at 
the  polls  the  question  whether  the  city  or  village  shall  avail 
itself  of  the  provisions  of  the  law.  On  such  referendum  the 
law  required  a  2/3  favorable  vote.  This  law  was  superseded 
by  No.  186  of  the  same  year,  1891,  which  provided  that  any 
city  or  incorporated  village  may  build  or  buy,  maintain  and 
operate  works  to  supply  the  city  or  village  and  its  inhabitants 
with  gas,  electric  or  other  light,  or  contract  for  furnishing  the 
same.  Then  follow  initiative  and  referendum  provisions  like 
those  above  except  that  a  majority  vote  is  sufficient,  and  then 
we  find  a  proviso  that  the  clause  relating  to  purchase,  con- 
struction, maintenance  and  operation  shall  not  apply  to 
cities  having  more  than  25,000  inhahitants.  Law  No.  139 
of  1893,  provides  that  any  city  or  incorporated  village  of  not 
more  than  8,000  population,  which  already  owns  and  opei'ates 
electric  light  works  for  its  streets,  may  supply  the  inhabitants 
also.  The  private  companies  evidently  wish  to  keep  com- 
mercial lighting  in  the  big  cities  for  themselves  as  long  as 
possible. 

In  Tennessee,  all  cities  of  more  than  36,000  population  may 
build  or  buy  gas  and  electric  light  works  to  supply  streets  and 
public  buildings  and  may  supply  gas  to  the  people. 

In  West  Virginia,  the  council  of  a  city,  town  or  callage  may 
erect  or  authorize  or  prohibit  the  erection  of  gas,  electric  light 
or  water  works. 

In  Iowa,  a  city  or  town  may  purchase,  establish,  erect, 
maintain  and  operate,  within  or  without  the  corporate  limits, 
water  works,  gas  works,  electric  light  and  power  plants,  and 
may  grant  to  individuals  or  corporations  authority  to  erect 
and  maintain  such  works.  The  term  is  not  to  exceed  25  years. 
No  exclusive  franchise  is  to  be  granted,  and  no  such  plants  can 
be  authorized,  established,  erected,  purchased,  leased  or  sold, 
or  franchise  extended  or  renewed  unless  the  proposition  is 
favored  by  a  majority  of  the  electors  voting  on  it  at  a  general 
or  special  election.  Under  these  provisions,  it  is  held  that  a 
mimicipality  may  supply  its  inhabitants  with  light  or  water 
by  a  plant  of  its  own  altho  a  franchise  for  the  same  purpose 


LOCAL  GOVEEXMEXT  BY  THE  LOCAL  PEOPLE.       445 

may  pre^-ioiisly  have  been  gi-anted  bj  the  municipality  to  a 
private  company,  (Thomson  Houston  Elec.  Co.  v,  Newton, 
42  Fed.  Rep.  723 — bill  to  enjoin  the  city  from  erecting  an 
electric  plant,  the  company  having  spent  $20,000  in  building 
a  plant  imder  its  franchise  previously  granted  it  by  the  city, 
and  being  able  to  furnish  all  the  electricity  needed.  See 
Iowa  Code,  1897.)  This  is  according  to  the  principles  of  com- 
petitive business  acted  on  by  the  corporations  themselves — 
if  you're  not  sharp  enough  to  make  a  cast  iron  contract  that 
will  protect  you  all  round,  you  must  suffer  the  consequence^} — 
but  it  is  not  justice,  any  more  when  a  city  disregards  what  is 
fair  to  others  than  when  a  private  company  does  it. 

Colorado  gives  all  municipalities  the  right  to  build  or  buy 
water  or  light  works  or  grant  light  or  water  franchises.  But 
no  water  or  light  works  shall  be  constructed  or  authorized  un- 
til sanctioned  by  vote  of  the  people.  Where  municipalities 
have  the  power  to  grant  franchises  together  with  a  general 
power  to  build  or  buy  without  limiting  words,  full  conuneircial 
power  or  authority  to  sell  to  private  consumers  as  well  as  to 
light  street*  and  public  places,  would  seem  to  be  implied. 

Utah's  statutes  in  a  single  clause  give  city  councils  power 
to  construct  and  maintain  water  works,  gas  works,  electric 
light  works,  street  railways,  or  bath  houses,  or  to  authorize 
the  construction  and  maintenance  of  the  same  by  others,  or 
to  purchase  any  or  all  of  said  works  from  any  person  or  cor- 
poration. 

In  New  Jersey,  all  cities  may  buy  electric  or  gas  or  other 
light,  or  water  works,  and  the  franchise,  and  supply  the  city 
and  its  inhabitants. 

In  Wisconsin,  any  city  or  callage  may  buy  water  works  or 
light  plants;  municipalities  may  build  lighting  plants  for 
street  service,  and  may  buy  commercial  plants,  or,  if  there  are 
none  or  none  willing  to  sell,  the  city  may  erect  such  plants. 

In  Pennsylvania,  boroughs  may  light  the  streets,  and  3d 
class  cities  (those  under  100,000  population)  have  the  exclu- 
sive right  to  supply  the  city  with  gas  or  other  light,  or  with 
water,  and  to  erect  works  or  authorize  others  to  supply  gas, 
light  or  water.     The  councils  of  any  3d  class  city,  if  author- 


446  THE   CITY    FOR   THE    PEOPLE. 

ized  by  a  referendum  vote  at  the  polls,  may  buy  (for  such 
price  as  may  be  agreed  on  between  the  councils  and  the  com- 
pany's stockholders)  all  property  of  a  water,  gas  or  electric 
light  company,  and  exercise  all  its  rights.  It  is  further  pro- 
vided that  at  any  time  after  20  years  from  the  introduction  of 
water  or  gas  into  any  place  by  a  private  company,  the  to^vn, 
borough,  city  or  district  in  which  the  said  company  is  located 
may  become  owners  of  the  property  by  paying  the  net  cost  of 
erecting  and  maintaining  the  same,  with  interest  thereon  at 
10  per  cent,  per  annum,  deducting  from  said  interest  all  divi- 
dends theretofore  paid.  'No  company  is  to  go  in  where  the 
municipality  has  built  works,  except  by  consent  of  the  muni- 
cipality. 

In  1891,  Masscichiisetts  passed  an  act  permitting  cities  and 
t-owns  to  manufacture  and  distribute  gas  and  electricity,  build 
or  buy,  maintain  and  operate,  gas  or  electric  light  works,  and 
supply  light  to  the  city  or  town  and  its  inhabitants.  An 
amendment  in  1894  permitted  municipalities  to  furnish  gas  or 
electricity  for  heat  and  power  except  for  operating  electric 
cars.  A  city  must  have  a  2/3  vote  in  each  council  and  ap- 
proval of  the  mayor  in  each  of  two  consecutive  years,  and  rati- 
fication by  the  majority  of  the  electors  at  an  annual  municipal 
election.  A  to^vn  must  have  a  2/3  vote  in  each  of  2  le^al 
town  meetings,  2  to  13  months  apart.  The  municipality  must 
buy  suitable  existing  works  if  the  owners  file  a  schedule  of 
property  and  terms  of  sale  with  the  clerk  of  the  city  or  to^vn 
within  30  days  after  the  final  vote  to  establish  municipal 
works.  The  price  of  the  property  "shall  be  its  lair  market 
value  for  the  purposes  of  its  use  (no  portion  of  such  plant  to 
be  estimated  however,  at  less  than  its  fair  market  value  for 
any  other  purpose)  including  as  an  element  of  value  the  earn- 
ing capacity  of  such  plant  based  upon  the  actual  earnings 
being  derived  from  such  use  at  the  time  of  the  final  vote. 
Such  value  shall  be  estimated  without  enhancement  on  ac- 
count of  future  earning  capacity  or  good  will,  or  of  exclusive 
privileges  derived  from  rights  in  the  public  streets."  Any 
locations  or  similar  rights  acquired  from  private  persons  must 
be  paid  for,  and  damages  suffered  by  the  severance  of  any  por- 


HOME   RULE   FOR   OUR   CITIES.  447 

tion  of  the  property  lying  outside  the  municipal  limits  are 
allowed,  except  where  the  main  plant  lies  outside.  Within  60 
days  after  the  filing  of  the  schedule,  either  party  may  petition 
the  Supreme  Court  to  appoint  special  commissioners  to  esti- 
mate the  price,  and  appeal  lies  from  these  commissionei*s  to  the 
Supreme  Court. 

The  Florida  acts  of  189Y  contain  a  statute  modelled  thru- 
out  on  the  Massachusetts  law.  It  does  not,  however,  require 
double  adoption — a  2/3  vote  of  council,  approval  of  mayor 
and  ratification  by  the  voters  at  the  polls  being  sufficient  with- 
out repeating  the  oj>eration  the  following  year.  If  the  propo- 
sition fails  at  the  polls,  no  similar  proposal  can  be  submitted 
for  ratification  within  one  year.  The  extreme  restrictions  in 
Massachusetts  are  due  to  the  strenuous  efforts  and  powerful 
influence  of  the  corporations.  It  took  a  three  years'  hard  fight 
to  get  the  law,  and  even  then  it  was  not  possible  to  pass  it 
except  with  corporation  amendments  which  seriously  dimin- 
ish its  value. 

In  Minnesota,  any  municipality  may  build  or  buy  water, 
gas,  electric  light  or  heat  plants  and  sell  to  inhabitants,  and 
under  another  law  may  buy  street  railways  or  telephone  or 
power  plants.     (See  below.) 

In  Missouri,  any  municipality  may  build  or  buy  water,  gas, 
electric  light  or  power  plants  and  sell  water,  gas,  etc.,  to  in- 
habitants. 

In  Kansas,  under  the  laws  of  1897,  any  municipality  may 
build  or  buy  water,  gas,  electric  light  or  power,  water  or  heat- 
ing plants,  and  sell  to  inhabitants. 

In  Nebraska,  1st  and  2d  class  cities  may  build  or  buy  gas 
or  electric  light  plants  and  sell  the  product. 

In  California,  there  are  general  provisions,  1st,  that  the 
common  council  may  provide  for  lighting  the  city;  2d,  that 
6th  class  cities  (all  municipalities  under  3,000  inhabitants) 
may  acquire,  own,  construct,  maintain  and  operate  street  rail- 
ways, telegi-aph  and  telephone  systems,  gas  and  other  works 
for  heat  and  light;  3d,  that  5th  class  cities  (municipalities  be- 
tween 3,000  and  10,000  population)  may  purchase,  lease  or 
construct  ^\iater  or  electric  light  works  and  sell  water,  heat,, 
light  and  power 


448  THE   BONDAGE   OF   CITIES 

South  Carolina's  constitution,  1895,  provides  tliat  any 
city  or  town,  on  a  vote  of  a  majority  of  its  electors,  may  build 
or  buy  water  works  or  light  plants  and  supply  its  inhabitants. 

The  Washington  statutes  of  1897,  Chap.  112,  provide  that 
any  incorporated  city  or  town  may  construct  or  buy,  own  and 
operate,  water  works  (within  and  without  its  limits),  gas,  elec- 
tric light,  or  other  light  plants  (to  serve  the  city  or  town  and 
its  inhabitants  with  public  or  private  supplies  of  water,  light, 
heat  and  power),  and  cable,  electric  or  other  railroads  within 
its  limits  for  the  transportation  of  freight  or  passengers.  A 
referendum  is  necessary,  and  if  debt  is  to  be  incurred  the 
proposition  must  be  adopted  by  a  3/5  vote  at  the  polls. 

The  ^'Indiana  Statutes,"  of  1896,  contain  three  most  inter- 
esting provisions  as  to  franchises:  one  relating  to  cities  of  35,- 
000  to  50,000  population,  another  to  cities  between  50,000 
and  100,000  and  a  third  to  cities  over  100,000.  The  three 
long  enactments  are  identical.  Their  substance  is  that  the  city 
board  of  public  works  (appointed  by  tlie  mayor)  shall  have 
power  to  purchase  or  erect,  by  contract  or  otherwise,  and  oper- 
ate gas  works,  electric  light  works,  street  cars  and  other  lines 
for  the  conveyance  of  passengers  and  freight,  telegraph  and 
telephone  lines,  steam  and  power  houses  and  lines,  to  supply 
the  city  and  its  inhabitants,  or  to  purchase  and  hold  a  majority 
of  the  stock  of  corporations  organized  for  either  of  the  above 
purposes.  Also  to  contract  for  the  furnishing  of  gas,  steam  or 
electricity,  light  or  power  to  said  city  or  the  citizens  thereof, 
and  in  such  contract  fix  charges.  To  authorize  and  empower 
by  contract,  telegraph,  telephone,  electric  light,  gas,  steam, 
or  street  car  or  railroad  companies  to  use  any  street,  and  pre- 
scribe terms  and  conditions  of  such  use,  except  that  franchises 
are  not  to  be  for  longer  term  than  25  years  nor  for  a  less  re- 
turn than  2  per  cent,  of  the  gross  receipts.  The  exercise  of  all 
these  powers  is  subject  to  the  approval  of  the  city  council 
which  has  "exclusive  control  of  the  streets."  New  Jersey, 
Missouri,  Texas  and  Kentucky  also  have  provisions  giving 
municipal  authorities  "exclusive"  control  of  streets. 

In  KentucTcy,  2d  class  cities  (20,000  to  100,000  people) 
may  provide  lights,  by  themselves  or  others,  for  streets  and 


TO    POLITICIANS    AXD    MONOPOLISTS    MUST    CEASE.  449 

inhabitants;  3d  class  cities  (8,000  to  20,000  people)  may  pro- 
vide the  city  and  its  inhabitants  -with  water,  light,  heat,  power, 
and  telephone  service  by  conti'act  or  works  of  its  own;  4th 
class  cities  may  light  public  places  by  gas  or  otherwise;  and 
in  1st  class  cities  (over  100,000  i.  e.,  Louisville)  the  board  of 
public  works  has  exclusive  control  of  the  lighting  and  use  of 
streets.  The  Kentucky  constitution  of  1891  provides,  §163, 
that  "no  street  railway,  gas,  water,  steam  heating,  telephone 
or  electric  light  company  in  any  city  or  town"  shall  lay  its 
tracks,  pipes,  wires,  etc.,  without  consent  of  the  local  legisla- 
tive authority,  and  §164  declares  that  "no  county,  city,  to^vn, 
taxing  district  or  other  municipality  shall  be  authorized  or 
pennitted  to  grant  any  franchise  or  privilege  or  make  any  con- 
tract in  reference  thereto  for  a  term  exceeding  20  years.  Be- 
fore granting  such  franchise  or  privilege  for  a  term  of  years, 
such  municipality  shall  first,  after  due  advertisement,  receive 
bids  therefor  publicly,  and  award  the  same  to  the  highest  and 
best  bidder.  But  it  shall  have  the  right  to  reject  any  and  all 
bids.    This  section  shall  not  apply  to  a  trunk  railway." 

This  principle  of  sale  of  franchise  to  the  highest  bidder  is 
also  recognized  in  ]^ew  York,  Ohio,  Wisconsin,  Missouri, 
Louisiana  and  California.  In  all,  the  method  has  been  applied 
to  street  railway  franchises,  and  in  California,  "Wisconsin  and 
Kentucky  it  has  a  much  wider  application.  Generally  the  sale 
is  to  the  company  bidding  the  highest  percentage  of  gross 
receipts,  but  the  bid  may  be  for  so  much  cash  down,  as  in  iSTew 
Orleans,  or  the  franchise  may  be  sold  to  the  company  agreeing 
to  serve  on  the  lowest  fare,  as  in  the  Ohio  provision  (relating 
to  2d  class  cities,  i.  e.,  Cleveland).  'New  Orleans  has  sold 
street  railway  franchises  for  cash  at  various  times  since  1879 
when  she  first  advertised  for  sealed  proposals.  Chap.  370  of 
Wisconsin's  laws  of  1897,  provides  for  publication  of  full 
specifications,  rates,  etc.,  and  advertisement  for  bids,  before 
any  city  or  village  can  gi-ant  a  franchise  tOi  establish  and  oper- 
ate a  street  railway,  gas  or  electric  plant,  or  water  works  or 
telephone  system  or  other  franchise  involving  the  use  of  the 
streets.  Chap.  361  pro^^des  for  the  submission  of  water  and 
lighting  grants  to  the  voters  at  the  polls,  and  requires  such 
submission  if  20  per  cent,  of  the  voters  petition  for  it. 

29 


450  MUXICIPAL  LIBERTY. 

In  California,  by  the  laws  of  1897,  "every  franchise  or 
privilege  to  erect  or  lay  telegraph  or  telephone  wires  or  eon- 
Btruct  or  operate  street  railways  on  any  public  street  or  liig-h- 
way,  to  lay  gas  or  water  pipes,  erect  poles  or  wires  for  trans- 
mitting electric  power,  or  light,  or  to  exercise  any  other  privi- 
lege whatever  hereafter  proposed  to  be  granted  by  the  board 
of  supervisors,  trustees,  county  commissioners  or  other  govern- 
ing body  of  any  city,  county  or  town  (excepting  steam  rail- 
roads, telegraph  lines,  and  renewals  of  franchises  for  piers, 
chutes  and  wharves)  shall  be  granted  on  the  following  con- 
ditions," viz:  the  application  must  be  advertised  for  10  days, 
with  a  statement  that  bids  of  so  much  per  cent,  (not  less  than 
3  per  cent.)  of  gross  receipts  will  be  entertained.  The  bids 
must  be  opened  in  open  session  and  the  franchise  or  privilege 
must  be  awarded  to  the  highest  bidder.  The  gain  to  the 
people  from  such  notice  and  sale  is  a  matter  of  much  interest, 
as  is  also  the  exception  clause. 

By  a  Missouri  statute  of  1895,  cities,  towns  and  villages 
are  to  sell  all  franchises  for  electric  light,  gas,  water  or  transit 
to  the  bidder  offering  the  highest  percentage  of  gross  receipts. 

In  New  York  state,  since  Jan.  1,  1875,  the  legislature  has 
been  under  constitutional  prohibition  in  respect  to  special 
legislation  granting  the  right  to  lay  down  railroad  tracks,  or 
confer  exclusive  privilege,  franchise  or  immunity,  and  has  not 
been  able  even  under  general  law  to  give  street  railway  com- 
panies a  right  to  construct  and  operate  roads  in  the  streets  of 
cities  and  towns,  the  consent  of  the  local  authorities  being  re- 
quired for  this  by  the  constitutional  amendment  of  Nov.  3, 
1874;  in  force  Jan.  1,  1875.  In  1884,  the  legislature  gave 
any  incorporated  city  or  village  the  right  to  sell  street  railway 
franchises  at  auction.  The  law  did  not  require  such  sale.  It 
was  merely  optional,  and  the  New  York  Board  of  Alderman 
took  advantage  of  this  fact  to  give  the  Broadway  Surface  Rail- 
road Company  the  right  to  operate  a  road  from  Union  Square 
to  South  Ferry,  exacting  nothing  but  the  3  per  cent,  of  gross 
receipts  (5  per  cent,  after  the  first  five  years)  which  was  the 
minimimi  allowed  by  the  law.  The  Cable  Railway  Company 
had  offered  $1,000,000  cash  in  addition  to   the   statute   per- 


LOCAL  GOVEKNMENT  BY  THE  LOCAL  PEOPLE.      451 

centages,  but  the  Broadway  Surface  people  bribed  aldermen 
at  the  rate  of  $20,000  each  and  secured  the  franchise  at  a 
cost  of  $500,000  for  bribes,  lobby  expenses,  etc.^ — half  a 
million  went  to  a  few  for  corruption,  in  place  of  a  million  to 
the  public  for  an  honest  franchise.  Almost  all  the  aldermen 
and  officers  of  the  Broadway  Company  were  indicted,  and  a 
few  convicted,  and  public  indignation  over  the  transaction  led 
to  the  Cantor  Act  of  1886,  which  provided  that  all  incorpor- 
ated cities  and  towns  must  sell  their  street  railway  franchises 
at  auction  (except  in  case  of  companies  already  organized  in 
municipalities  of  less  than  40,000  people).  The  public  sale 
of  street  railway  franchises  was  now  obligatory  instead  of 
optional.  But  as  public  sentiment  and  attention  lapsed,  cor- 
.  porate  interests  made  themselves  felt,  and  in  1890,  the  auction 
plan  was  restricted  to  cities  above  90,000  inhabitants.  In 
1892  the  Cantor  plan  was  further  eliminated  from  the  law  so 
that  it  ceased  to  exist  except  as  to  the  single  city  of  New  York, 
and  now  the  charter  of  Greater  New  York  leaves  it  in  doubt 
whether  the  auction  principle  has  not  been  banished  even 
from  that  city.  The  charter  says  that  "nothing  in  this  act 
shall  repeal  or  affect  the  existing  general  laws  of  the  state  in 
respect  to  street'  surface  railroads,"  but  §77  looks  the  other 
way  and  §§73  and  74  (see  below)  quite  clearly  indicate  an 
intent  to  substitute  full  discretion  and  piihlicity  for  the  obliga- 
tory auction  plan.  It  would  seem,  therefore,  that  at  present 
cities  and  towns  in  New  York  may  sell  street  railway  fran- 
chises at  auction  if  they  wish,  but  are  not  obliged  to. 

Several  remarkable  sales  have  occurred.  In  1887,  a 
premium  of  26.3  per  cent,  of  the  gross  receipts  was  bid  for  the 
28th  and  29th  Street  franchise,  and  35  per  cent,  for  the  Ful- 
ton Street  line  in  New  York.  The  latter  agreement  was  com- 
promised after  6  years  by  the  Sinking  Fund  Commissioners 
for  5  &  1/8  per  cent.,  as  the  company  claimed  that  itwas  losing 
money,  and  the  28th  and  29th  Street  crosstown  line  was  not 
operated  till  the  Commissioners  agreed  to  let  the  company  off 
for  half  of  1  per  cent,  above  the  3  per  cent,  statute  minimum. 
In  1895,  the  Third  Avenue  Extension  was  sold  for  $250,000 


0)  N.  T.  Senate  Doc.  79,  1886,  Report  of  Road  Com.  on  Broadway  S.  R.  Co. 


452  THE    CITY    FOE    THE    PEOPLE. 

cash  and  a  premium  of  38-|  j>er  cent.,  making,^  with  the  sta- 
tute minimum,  41-|  per  cent,  each  year  for  the  first  five  and 
43^  per  cent,  each  year  afterward  besides  the  $50  car  tax.  In 
the  same  year  The  People's  Traction  Company  and  its  com- 
petitors carried  the  bidding  into  the  clouds  for  the  capture  of 
a  short  route  important  to  the  People's  Company  as  a  connect- 
ing link  between  its  system  and  a  prospective  line  outside  the 
city  limits.  At  the  end  of  the  day's  bidding,  the  People's 
Company  had  offered  6975  per  cent.,  or  about  70  times  the 
entire  gross  receipts.  The  next  day  the  People's  Co.  and  one 
of  its  rivals  were  ready  to  go  on  bidding,  but  a  third  company 
got  out  an  injunction  on  the  sale.  The  case  went  into  the 
couils,  and  the  franchise  was  awarded  to  the  People's  Co.  for 
100  per  cent.,  but  an  appeal  has  been  taken.  It  is  said  that  the 
People's  Co.  could  afford  to  pay  many  times  the  receipts  of  the 
short  line  rather  than  lose  the  link  in  its  contemplated  system. 
And  it  is  also  said  that  the  company  could  arrange  to  make  no 
charge  for  transfer  over  the  short  route  so  that  the  gross  re- 
ceipts would  be  nothing  and  the  city  would  get  nothing  how- 
ever high  the  bids  might  run,  since  6975  per  cent,  or  10  mil- 
lions per  cent,  of  nothing  is  still  nothing. 

The  charter  of  Greater  'New  York  provides  (§16)  that  the 
municipal  assembly  may  grant  street  railway  franchises,  and 
establish,  maintain  and  regulate  ferries.  By  §71  the  rights  of 
the  city  in  and  to  its  water  front,  ferries,  wharf  property,  land 
under  water,  public  landings,  wharves,  docks,  streets,  avenues, 
parks  and  other  public  places  are  hereby  declared  to  be  in- 
alienable. By  §73,  no  franchise  or  right  to  use  the  streets 
shall  be  granted  by  the  municipal  assembly  for  more  than  25 
years,  but  the  grant  may,  at  the  city's  option,  contain  a  pro- 
vision for  renewals  (at  fair  revaluations)  not  exceeding  25 
years  in  the  aggregate.  The  grant  may  provide  that,  at  the 
end  of  the  term,  the  whole  property  of  the  grantee  shall  be- 
come the  property  of  the  city  without  further  compensation, 
or  it  may  provide  for  a  valuation  and  payment  of  that  valua- 
tion.   If  the  property  becomes  public   without   money   pay- 


D  This  Bale  was  annulled  on  the  ground  that  the  cash  bonus  was  beyond 
the  law,  and  that  the  extension  Included  two  routes.  Beckman  v.  Third  Ave. 
B.  R.  Co..  153  N.  Y.,  144. 


HOME   RULE   FOR   OUR   CITIES.  453 

ment,  the  city  may  operate  it,  or  lease  it  f  r  a  term  not  exceed- 
ing 20  years.  If  the  city  tak^  the  property  by  payment  it 
must  operate  it  for  at  least  5  years,  after  which  it  may  con- 
tinue to  operate  it  or  may  lease  it  for  limited  periods  in  the 
same  manner  as  it  does  its  docks  and  ferries.  By  §74,  the  full 
terms  of  every  proposed  grant  of  franchise  or  right  to  use 
the  streets  must  be  published  in  the  City  Record  for  20  days 
before  the  grant  is  made  and  at  least  twice  in  2  daily  news- 
papers, must  be  approved  by  the  board  of  estimate  and  appor- 
tionment, must  receive  a  3/4  vote  by  ayes  and  noes  in  each 
branch  of  the  assembly  and  the  approval  of  the  mayor.  A 
5/6  vote  of  each  branch  is  necessary  to  pass  a  franchise  over 
the  mayor's  veto,  and  ^  least  30  days  must  intervene  between 
the  introduction  of  any  franchise  granting  ordinance  and  its 
final  passage. 

The  iSTew  York  Charter  is  complexly  careful  or  carefully 
complex,  and  yet  it  does  not  adopt  the  most  important  of  all 
checks  upon  corrupt  or  injudicious  franchise  grants,  the  in- 
itiative and  referendum,  which  we  have  found  in  the  new 
freehold  charter  of  San  Francisco,  and  in  a  less  complete  form, 
in  the  laws  of  Wisconsin,  Michigan,  Massachusetts,  Florida, 
South  Carolina,  Colorado,  Washington,  Pennsylvania,  and 
Iowa.     Other  examples  will  occur  as  we  proceed. 

LOCAL  POWERS  OF  CONSENT,  GRANT,  &C. 

The  reader  has  doubtless  noted,  that  as  I  predicted,  we  have 
drifted  from  powers  of  ownership  to  powers  of  grant.  The 
laws  often  deal  with  the  two  in  the  same  paragraph,  and  they 
are  in  reality  merely  complementary  portions  of  the  right  of 
local  self  government  in  respect  to  local  franchises.  We  have 
covered  the  entire  body  of  statute  law,  and  find  that  there  is 
but  one  state  in  the  Uniofn  (Louisiana)  that  has  no  general 
legislation  requiring  local  consent  for  street  railways,  water, 
gas,  electric  light,  telegraph,  telephone  and  other  street  ser- 
vices, or  empowering  municipalities  to  grant  such  franchises.* 
Delaware,  Maryland  and  Nevada  have  almost  nothing:,  but 

m  Perhaps  the  Louisiana  law  of  1896  empowering  municipalities  to  make 
their  own  charters  should  be  considered  as  an  indirect  contribution  under 
this  head. 


454  THE   BONDAGE   OF   CITIES 

still  there  is  a  glimmer  of  light  even  in  Delaware,  it  being 
enacted  that  a  street  railway  shall  not  use  a  county  bridge  or 
road  without  consent  of  the  county  levy  court  elected  by  the 
citizens  of  the  county — a  mere  scintilla  of  local  self  govern- 
ment in  respect  to  franchises,  but  enough  to  save  Delaware's 
general  laws  from  Egyptian  darkness.  Maryland  requires 
consent  of  municipal  authorities  for  water  works,  and  l^evada 
authorizes  cities  and  towns  to  grant  gas  and  water  privileges. 

From  these  minimum  recognitions  of  local  right  we  pass  by 
a  series  of  gradations  thru  the  meagre  measures  of  Alabama, 
North  Carolina,  Georgia,  Arkansas  and  New  York  up  to  the 
larger  provisions  of  Massachusetts,  South  Dakota,  Pennsyl- 
vania, Ohio,  Illinois,  Colorado  and  Montana,  and  the  sweeping 
laws  and  constitutional  safeguards  of  Indiana,  Iowa,  AVis- 
consin,  Minnesota,  Missouri,  Kansas,  California,  Kentucky, 
Tennessee,  Rhode  Island,  Utah,  AVyoming,  Washington, 
South  Carolina  and  Florida. 

One  of  the  commonest  recognitions  of  local  right  to  control 
street  services  is  a  provision  requiring  street  railways  to  get 
local  consent  to  construct  their  tracks  and  subjecting  their 
locations  to  municipal  control.  In  16  states  {California, 
"Wyoming,  Utah,  Montana,  Kentucky,  Alabama,  North  Da- 
kota, Kansas,  IOWA,  Missouri,  Minnesota,  Wisconsin, 
Indiana,  Ohio,  New  York,  Rhode  Island)  there  are  effettive 
provisions  relating  to  the  grant  of  street  railway  rights  and 
franchises  by  municipalities.  The  states  in  italics  provide  for 
sale  of  the  franchise,  and  Iowa  requires  a  referenda  i.  Thirty- 
five  states  expressly  require  local  consent,  and  generally  it  is 
a  necessity,  there  being  no  appeal  from  the  local  decision.  In 
13  states  (New  York,  West  Virginia,  Illinois,  Missouri, 
Nebraska,  South  Dakota,  South  Carolina,  Georgia,  Alabama, 
Kentucky,  Idaho,  Colorado,  and  Wyoming)  a  provision  re- 
quiring street  railways  in  cities  and  towns  to  get  the  consent 
of  the  local  authorities  has  been  put  in  the  constitution. 

A  constitutional  clause  of  this  kind  is  of  course  bed-rock, 
not  liable  to  be  overturned  by  legislative  action  or  appeal  to 
state  commission  or  court — a  .bit  of  real  municipal  sovereignty. 
In    Kentucky,    as    we    have. seen,    ihe    provision    requir- 


TO    POLITICIANS    AND    MONOPOLISTS    MUST    CEASE.  455 

ing  local  consent  includes  steam-heating,  gas,  water,  street 
railway,  telephone,  and  electric  light  in  cities  and  towns,  and 
in  every  case  the  municipality  must  sell  the  franchise  to 
the  highest  bidder  for  a  term  not  over  20  years.  In 
South  Carolina  also,  consent  of  the  municipal  authorities 
is  necessary  by  the  constitution  not  only  for  street  railways, 
but  for  any  railroad  track,  gas  or  water  pipes,  telegraph,  tele- 
phone or  electric  light  wires.  In  Wyoming,  the  constitutional 
clause  covers  the  telegraph,  telephone  and  electric  light,  and 
in  South  Dakota  it  covers  the  telegraph  and  telephone. 

Twenty-six  states  make  local  consent  necessary  for  gas  (con- 
stitutional provision  in  Kentucky  and  South  Carolina,  statute 
elsewhere),  and  15  of  these  states  with  14  others  confer  upon 
local  authorities  the  right  to  grant  gas  privileges.  A  right  to 
grant  must  be  distinguished  from  a  requirement  for  local  con- 
sent. The  latter  clearly  indicates  a  policy  of  local  control,  but 
accords  no  right  of  initiation;  while  authority  to  grant  gives 
power  of  initiation,  but  unless  the  authority  is  exclusive  it 
affords  no  certainty  of  control.  A  mere  power  to  grant  does 
not  exclude  the  idea  of  independent  grants  by  the  legislature 
directly ;  it  is  on  its  face  only  a  concurrent  power.  A  require- 
ment of  local  consent  is  on  its  face  a  veto  power  and  may  be 
more  valuable  than  a  right  to  grant  unless  it  is  exclusive,  in 
which  case  it  includes  the  local  consent  idea,  and  is  a  creative 
and  a  veto  power  in  one. 

Twenty-one  states  require  local  consent  for  electric  light 
(constitutional  provision  in  South  Carolina,  Kentucky  and 
"Wyoming);  10  of  the  21  and  14  others  confer  the  right  of 
grant.  Eighteen  states  recognize  by  general  law  the  principle 
of  local  consent  in  respect  to  telegraph  (Kentucky,  South 
Carolina,  South  Dakota  and  Wyoming  in  the  constitution); 
5  of  the  18  and  8  others  accord  to  some  or  all  municipalities 
the  right  to  grant  telegi'aph  privileges.  With  the  telephone 
it  is  local  consent  in  17  states  (same  4  in  constitution);  6  of 
the  17  and  10  others,  grant.     (See  Appendix  II,  U.) 

These  summaries  afford  some  idea  of  the  almost  universal 
recognition  of  the  right  of  local  self  government  in  respect 
lo  streets  and  franchises.     The  field  of  this  recognition  is  o^ 


456  MUNICIPAL  LIBERTY. 

course  much  broader  than  this  discussion.  We  have  not  at- 
tempted to  deal  with  municipal  regulation  of  local  services — 
a  topic  of  enormous  girth.  The  lowest  forms  of  power  that 
might  fall  within  the  lines  of  local  consent  and  right  of  grant 
are  what  may  be  called  the  right  of  designation  (which  is 
really  a  regulative  power)  and  the  right  of  consultation.  An 
example  of  the  first  is  the  local  right  to  designate  locations  for 
railway  tracks  or  tel^raph  posts  without  the  right  to  refuse 
all  locations.  (See  below.)  An  example  of  the  second  is  the 
right  of  selectmen  to  grant  or  revoke  licenses  for  telegraph, 
telephone  or  electric  light  poles  and  wires,  subject  to  appeal 
to  the  Superior  Court,  as  in  New  Hampshire. 

The  highest  form  of  authority  is  a  sweeping  statute,  or  bet- 
ter still  a  constitutional  provision,  giving  complete  and  ex- 
clusive powers  of  grant  and  revocation,  purchase,  erection, 
ownership  and  operation  to  every  municipality,  subject  to  the 
initiative  and  referendum,  and  possibly,  in  some  cases,  to  the 
consent  of  a  majority  of  the  property  owners  chiefly  affected. 
The  principle  of  the  initiative  in  respect  to  these  franchises  is 
recognized  in  the  general  legislation  of  three  states  (Wiscon- 
sin, Michigan  and  J^ebraska),  and  the  referendum  in  eleven 
(Colorado,  Florida,  Iowa,  Massachusetts,  Michigan,  Minne- 
sota, Nebraska,  Pennsylvania,  South  Carolina,  Washington 
and  Wisconsin).  In  most  cases  these  principles  are  only  parti- 
ally applied,  as  follows: 

Colorado,  gas,  electric  light  and  water. 

Florida,  gas,  electric  light. 

Iowa,  gas,  water,  electric  light  and  power,  telegraph,  tele- 
phone and  street  railways. 

Massachusetts,  gas  and  electric  works. 

Michigan,  gas,  electric  or  other  light. 

Minnesota,  gas,  electric  light,  street  railway,  water,  tele- 
phone, heat  and  power. 

Pennsylvania,  3d  class  cities,  gas,  electric  light,  water. 

South  Carolina,  gas,  electric  light,  water. 

Washington,  gas,  electric  6r  other  means  of  light,  heat, 
power,  water,  cable,  electric  or  other  railways. 

Wisconsin,  gas,  electric  light,  water. 


LOCAL  GOVEBNIMENT  BY  THE  LOCAL  PEOPLE.       457 

l^ebraska,  municipal  initiative  and  referendum  covering  all 
contracts,  grants,  franchises  and  ordinances  of  every 
sort  (law  of  1897),  but  the  percentage  of  voters  re- 
quired to  demand  the  referendum  is  high. 

South  Dakota,  general  state  and  municipal  initiative  and 
referendum  (amendment  to  constitution,  passed 
legislature,  1896,  adopted  by  the  people  in  ITov., 
1898,  by  a  large  majority). 

We  have  included  water  where  it  occurred  in  connection 
vnth  the  franchises  specially  discussed,  but  have  not  searched 
specially  for  referendum  provisions  relating  to  water  works, 
or  possibly  the  list  would  be  somewhat  longer. 

The  consent  of  property  owners  is  required  by  general  laws 
as  follows: 

Connecticut  (see  below)  electric  light,  telegraph,  telephone, 

Illinois,  gas,  electric  light,  L  roads. 

Kansas,  cities  over  40,000,  street  railways. 

Missouri,  street  railways. 

Korth  Dakota,  street  railways. 

'New  York,  (see  below)  street  railways. 

Sometimes  the  ownere  of  more  than  half'the  frontage  must 
assent  (as  in  Illinois,  j^orth  Dakota,  etc.,  see  below);  some- 
times the  owners  of  half  or  two-thirds  of  the  value  (see  New 
York  below);  sometimes  a  majority  of  the  persons  owning  pro- 
perty on  the  line  (see  Kansas  below). 

In  Connecticut  and  ISTew  Hampshire,  the  local  authorities 
have  exclusive  dwection  of  the  places  of  tracks. 

In  Connecticut,  no  telegraph  or  telephone  or  electric  light 
comi^any,  or  company  distributing  electricity  by  wires  or 
similar  conductors,  or  using  wires  or  conductors  for  any  pur- 
pose, can  place  them  in  the  streets  or  highways  without  con- 
sent of  the  adjoining  proprietors  or  of  two  county  commis- 
&ionn'S  (appointed  by  the  General  Assembly).  Subject  to 
this  and  to  appeal  to  the  superior  court  (appointed  by  the 
Governor  and  Legislature),  the  council  of  a  city  and  selectmen 
of  a  town  have  full  cmitrol  of  the  location,  re-location  or  re- 
moval of  the  aforesaid  ^vires  and  conductors.  In  J^ew  Hamp- 
shire, appeal  lies  to  the  supreme  court  from  the  decision  of 


458  THE  CITY  FOR  THE  PEOPLE. 

selectmen  respecting  telegraph  and  telephone  privileges.  In 
Maine,  the  local  consent  to  street  railways  provided  for  by  the 
Laws  of  1895,  p.  81,  is  subject  to  appeal  from  the  municipal 
officers  to  the  supreme  court.  The  state  lets  the  municipality 
go  out  of  doors  and  walk  around  a  bit,  but  keeps  a  pretty  big 
string  tied  to  it;  except  the  right  to  build  or  buy  light  works, 
it  has  really  nothing  but  rights  of  consultation,  designation 
and  regulation — no  power  of  veto,  little  power  of  construction, 
very  little  real  sovereignty. 

Several  of  the  sweeping  provisions  above  mentioned  have 
already  been  noted  while  speaking  of  municipal  ownership 
(see  paragraphs  about  Indiana,  Iowa,  Wisconsin,  Missouri, 
California,  South  Carolina  and  Kentucky  a  few  pages  back). 

The  Minnesota  Statutes  (1894)  §2592,  provide  that  no  cor- 
poration shall  establish  gas,  electric  light,  heat,  transportation, 
or  other  improvement  except  on  obtaining  a  franchise  from 
the  city  or  village  council,  and  making  just  compensation,  and 
at  the  end  of  each  and  every  franchise  period  of  five  years  the 
council  may,  on  a  two^thirds  vote  of  the  electors  of  the  city  or 
village,  buy  at  eminent  domain  value  and  own  and  operate 
the  gas,  electric  light,  street  railway,  water,  telephone,  heat  or 
power  works.  That  is  something  worth  having  in  the  way  of 
local  self  government.  Take  out  the  five  year  limitation,  ex- 
tend the  referendum  to  the  granting  of  franchises,  add  the 
initiative  on  a  5  per  cent,  petition,  authorize  cities  to  build  at 
the  start,  and  put  the  whole  thing  in  the  constitution,  beyond 
the  reach  of  legislative  interfei*ence,  and  municipal  freedom 
and  sovereignty  would  be  established  in  respect  to  the  most 
important  local  services  of  a  monopolistic  character. 

In  Kansas,  by  the  laws  of  '97,  any  municipality  may  grant 
gas,  electric  light,  water,  heat  or  power  privileges  for  a  term 
not  exceeding  20  years,  and  it  may  be  terminated  in  10  years. 
Forty  days  notice  of  application  for  a  franchise  or  renewal 
must  be  published,  and  the  municipality  must  reserve  rents 
for  the  use  of  streets.  Provision  is  made  for  filing  items  of 
construction  cost,  income  and  outgo  by  the  companies,  the 
items  to  be  open  to  public  inspection.  In  1st  class  cities  (those 
of  more  than  15,000  inhabitants)  the  mayor  and  council  may 


HOME   EULE   FOR   OUR   CITIES.  459 

grant  rigtits  of  way  for  telegi'aplis,  telephones  and  electric 
light  works;  may  grant  street  rights  for  laying  gas,  water  and 
^eam  pipes  and  conduits  for  electric  light  wires;  provide  for 
and  regulate  and  grant  railroad  and  street  railway  rights  in 
streets,  but  cannot  give  an  exclusive  right;  and  may  grant  per- 
mits to  mine  coal.  No  city  of  more  than  40,000  people  can 
grant  street  railway  rights  Avithout  the  assent  of  a  majority 
of  the  persons  owning  property  on  the  line. 

Tennessee  requires  local  consent  for  water,  gas,  and  street 
railways  and  provides  that  all  municipalities  may  grant  privi- 
leges in  the  streets.     Florida  requires  local  consent  for  tele- 
graph and  telephone;  authorizes  cities  and    towns   to   grant 
water,  gas  and  electric  light  privileges;  and  provides  that  fran- 
chises  to   use   the   streets  for  a  public  use  shall  be  granted 
only  by  the  mayor  and  council.     Utah  requires  local  consent 
fcr  street  railways,  telegraphs  and  telephones,    and   provides 
tltat  city  councils  may  grant  franchises  for  water,  gas,  electric 
light,  street  railways  and  wires  in  streets,  and  may  permit  or 
prohibit  railroad  tracks.    In  Wyoming,  the  constitution  makes 
local  consent  necessary  for  street  railways,    telegraph,    tele- 
phone and  electric  light,  and  by  statute  local   consent  is   re- 
quired for  gas,  and  any  city  or  town  may  grant  gas,  or  electric 
light  privileges,  and  street  railway  franchises  are  not  to  ex- 
ceed 10  years  on  reasonable  conditions.     In   addition   to   the 
sweeping  power  of  grant  stated  on  p.  444,  the  Iowa  statutes 
provide  that  a  city  or  town  may  authorize  or  forbid  street  rail- 
way or  any  railroad  construction  in  the  streets.     In  Missouri 
also,  besides  the  constitutional  necessity  of  local  consent  for 
street  railways,  and  the  broad  statute  requiring  cities,  towns 
and  villages  to  sell  water,  gas,  electric  light  and  transit  fran- 
chises to  the  highest  bidder,  there  is  a  statute  relating  to  cities 
of  the  3d  class  (3,000  to  30,000)    which   provides   that   the 
council  shall  have  exclusive  power  to    grant    street   railway 
franchises  with  the  assent  of  property  holders  along  the  route. 
Rhode  Island  provides  that  a  city  or  town  may  grant  "rights 
and  franchises  in,  over  or  under  highways,"  for  water,  gas, 
electric  light,  heat  or  power,  street  railways,  and  telephones. 
The  franchise  granted  may  be  exclusive  for  a  term  not  exceed- 


460  THE   BONDAGE   OF   CITIES 

ing  25  years.  With,  the  exception  of  California  and  Missouri, 
the  great  states  containing  the  giant  cities  have  not  taken  a 
very  advanced  position  in  respect  to  municipal  control  of 
franchisee.  The  Constitution  of  New  York,  Art.  3,  §18, 
makes  consent  of  the  local  authorities  necessary  to  the  con- 
struction or  operation  of  a  street  railway  in  a  city  or  town. 
The  consent  of  the  owners  of  at  least  half  the  property  (that  is, 
half  in  value)  abutting  on  the  route  is  also  required,  or  else 
the  assent  of  three  commissioners  appointed  by  the  Appellate 
Division  of  the  Supreme  Court,  which  assent,  when  confirmed 
by  the  court,  will  answer  instead  of  the  consent  of  the  property 
owners,  but  nothing  will  take  the  place  of  the  consent  of  the 
local  authorities.  Under  this  constitution,  the  right  to  con- 
struct and  operate  a  road  in  the  streets  of  a  municipality  can 
only  be  obtained  from  the  local  authorities  and  on  such  terms 
as  they  choose  to  impose.  (People  v.  O'Brien,  111  IT.Y.,  1.)  The 
legislature  can  authorize  and  regulate  the  organization  of 
street  railway  companies,  but  only  the  city  or  town  can  give 
those  companies  the  right  to  build  and  operate  in  their  streets. 
This  is  a  little  bit  of  i"eal  sovereignty.  By  statute,  the  consent 
of  the  owners  of  two-thirds  of  the  abutting  property  is  neces-  • 
sary  to  constitute  owners'  assent  to  a  street  railway  in  a  town, 
owners  of  half  value  will  do  in  a  city.  (1896  vol.  I,  p.  777.) 
A  gas  or  electric  company  must  get  municipal  consent  to  use 
the  streets. 

The  Illinois  constitution  requires  local  consent  for  street 
railways.  By  statute,  local  consent  is  necessary  also  for  tele- 
graph, and  telephone  wires  and  railroad  tracks.  No  L  road  can 
be  built  except  by  permission  of  th.e  council  or  trustees  on 
petition  of  the  property  owners  on  the  route.  No  city  council 
or  president  and  trustees  of  a  village  or  incorporated  town  can 
grant  a  franchise  or  right  to  lay  gas  pipes  or  wires  for  electric 
light  except  on  petition  of  land  owners  representing  more  than 
half  the  frontage  on  the  streets,  alleys,  etc.,  to  be  used.  (Laws 
of  1897,  p.  100.    See  also  Rev.  Stats.,  1895  and  1898.) 

In  Pennsylvania,  local  consent  is  necessary  for  street  rail- 
ways, gas,  electric  light,  lieat  and  power  and  for  telegi*apli 
poles  and  wires. 


TO    POLITICIAIfS    AND    MONOPOLISTS    MUST    CEASE.  461 

In  Massaclmsetts,  the  aldermen  of  a  city  and  selectmen  of 
a  toA\m  may,  after  a  hearing,  grant  or  refuse  locations  for  street 
railways.  Local  consent  is  also  necessary  for  gas  and  electric 
light.  In  the  case  of  telegraph  and  telephone  companies  with 
state  franchises  the  local  authorities  may  designate  (but  can- 
not refuse)  locations  for  posts,  etc.,  and  may  make  reasonable 
regulations  subject  to  appeal  to  state  courts.  Aside  from  this, 
the  selectmen  of  a  town  may  grant  telegraph  and  telephone 
franchises  to  individuals  or  companies  and  control  them  en- 
tirely.   (Pub.  Stat  c.  27,  §§45,  48.)     §45  reads  as  follows: 

"The  selectmen,  upon  such  terms  and  conditions  as  they 
may  prescribe,  and  subject  to  the  provisions  of  chapter  109, 
as  far  as  applicable,  may  authorize  any  person  to  construct  a 
line  of  electric  telegraph  for  private  use  upon  and  along  the 
public  ways  of  the  town.  Upon  the  erection  of  such  line,  the 
posts  and  structures  thereof  mthin  such  ways  shall  become  the 
property  of  the  town,  and  the  selectmen  may  regulate  and  con- 
trol the  same,  and  may  at  any  time  require  alterations  to  be 
made  by  the  parties  using  the  same  in  the  location  or  erection 
thereof,  and  may  order  the  removal  thereof,  having  first  given 
such  parties  notice  and  an  opportunity  to  be  heard.  The  town 
may  at  any  time  attach  wires  for  its  own  use  to  such  posts  and 
structures  and  the  selectmen  may  permit  other  persons  to  attach 
wires  for  their  private  use  thereto  or  to  posts  and  structures 
established  by  the  town,  and  may  prescribe  such  terms  and 
conditions  therefor  as  they  deem  reasonable." 

A  similar  law  exists  in  Vennont. 

Xote  the  clause  making  the  telegraph  jx)sts  and  structures 
municipal  property  immediately  upon  erection.  Why  should 
not  the  same  principle  be  applied  to  every  local  service  that 
builds  its  works  in  the  streets?  Allow  a  reasonable  franchise 
tenn,  but  put  the  title  to  the  property  in  the  municipality 
either  at  the  start  or  at  the  expiration  of  the  franchise  period, 
without  further  compensation  than  that  involved  in  the  fran- 
chise grant  for  the  said  term. 

A  great  deal  more  space  could  be  devoted  to  these  matters, 
bi;t  we  will  content  ourselves  with  the  following  summary  in 
tabular  form,  which  shows  at  a  glance  the  principal  provisions 
relating  to  local  consent  and  powers  of  grant. 


462 


MUNICIPAL  LIBERTY. 


TABLE  III. 


Me 

N.  H.. 


Vt 

Mass. 
R.  I... 

Conn. 
N.  Y. 


N.J 

Pa. 

Del 

Md. 

W.Va.. 


Ohio. 
Ind... 


Iowa.. 

Kans.. 
Neb... 


Ky 

Mont.. 
Idaho . 
Colo.... 


St.  Ry. 


1.  c.  a. 
I.e. 

1.  e.  a. 
I.e. 
g- 
I.e. 

1.  c.  C. 
1.  c.  o. 
g.b. 

I.e. 

I.e. 


•" 1 

Mich 

Wise I 

Minn I 

Mo -I 


1.  e.  C. 
g.b. 
I.e. 

..Ic. 

LKds 
1.  e.  &  o. 

I.e. 


Gas 


I.e. 
I.e. 


I.e. 
g- 


I.e. 


I.e. 
I.e. 


I.e. 
I^c. 


g- 

I.e. 
g.  o. 


8.  Dak 

N.  Dak I 

Va 

N.  Car 

8.  Car 

Qa 

Fla 

Ala 

Miss 

La 

Texas 

Ark 

Tenn \ 


1.  c.'c. 
g.b. 
o. 

I.e. 

g.R. 

1.  e. 

g.  1st  el. 

o.  40,0ii0 

1.  e.  C. 

1.  e.  C. 
I.e. 


1.  c.  C. 
1.  c.  C. 


1.  e.  f. 


Le. 

,«e. 
1. 1'c. 


Utah I 

NeT 

Wyo { 

Ore 

Wash 

Gal..  I 


1.  c.  C. 

1.  c.  C. 
I.e. 
g- 


1.  c.  C. 

K'- 
g- 

I.e. 
■g.'bV 


n.e. 

1.  e. 

g.  b.  R. 

1.  e. 

g- 

g.b. 


g.R. 
I.  c. 
g- 


I.e. 
l.e. 

l.^e. 

I.e. 

1.  e.  C. 

1. 

g- 


fi.e. 
I    g- 

l^e. 

g- 

I.  e. 
Ik-R. 


Elect.     Teleg.  |  Teleph.    Water       Rds 


I.e. 

1.  e. 
l.e. 

1.  e.  o. 
a. 
I.e. 


1.  e.  a.  I  1.  e.  a. 
g-      I     .g- 


I.e. 


g- 

g- 
g- 

I^e. 
g.b. 


l.c. 

A 

s- 
g- 

g.  0. 


I.e. 
g- 

g.R. 
1.  c. 
g- 

g.b. 

g.R. 
l.c. 
g- 


g- 

I.e. 
Lc. 


l.c. 

g^d. 

,  g- 
1.  c.  o.      1.  e.  o. 


r  l.c. 
g.  d. 


1.  c. 
1.  c. 


I.e. 


l.^e. 


1.  e. 
g- 


g.R. 


g.  Ist  cl 


I.e. 
1.  c.  C. 


1.  c.  C. 
l.c. 


I.  c. 
1.  e.  C. 


l.c. 
g- 


I.e. 


1.  e. 


l.^c. 


l.c. 


{ 


l.c. 
l.c. 

1%. 


g.R. 


g.  let  cl. 


1.  e.  C. 
l.c. 

l^e. 

1.  c.  C. 


l.c. 
g- 


1.I.-C. 
l^e. 


I.e. 
g.R. 


g- 


1.  c.  C. 

g- 

g- 
g.  1.  c. 


g.b. 


I.  e^'c. 
l^c. 


g- 
1.  e  C. 

1%. 


I.e. 
"i.'c'.' 


1.  o.  C.     1.  c.  C 


I.e. 


1.  c. 
g- 


g.(3d'el.);g.(3d'cl.) 


g.  t>. 


l.c. 


g.R. 
I.e. 

g- 

g.b. 


g.  K. 

l.c. 

g- 


1.  e.  C. 

g- 


g- 
l.c. 


I.e. 

g. 

1.  e.  C. 


l.\ 


g.R. 


I.e. 


g.  exe. 
1st  el. 


l.'^e. 

L.  1.  e. 

&o. 


l.c. 
g- 


Heat   I  Power 


l.c. 


g- 
g- 

g.  Ist  cl. 
g- 

l.^e. 
g.b. 


l^c. 


I.e. 


l.c. 


l.c. 


l.c. 

g- 


i.c«;c. 


l.c. 

g- 


g.R. 
g- 


g.b. 


See  explanation  on  next  page.    Dots  are  run  across  blank  spaces  to  carry 
the  eye  where  there  Is  any  further  entry  on  the  same  line. 


LOCAL  GOVEKXJCENT  BY  THE   LOCAL   PEOPLE. 

In  this  table  1.  c.  means  local  consent,  1.  c.  o.  or  o.  alone  means 
consent  of  owners  of  property  along  the  line  of  railway,  etc 

d,  means  right  to  designate  locations, 

a,  means  appeal  to  court  or  commissioners, 

g",  means  local  power  to  grant, 

g.  b.  means  sale  or  grant  to  highest  bidder. 

R,  means  referendum  necessary. 

L,  means  elevated  road, 

C,  means  by  constitutional  provision. 
A  power  of  grant,  if  exclusive,  is  of  course  equivalent  to  requir- 
ing local  consent,  altho  the  laws  of  the  state  may  contain  no  specific 
provision  as  to  local  consent. 

^Municipalities  that  have  been  given  control  of  their  streets  may 
grant  street  railway  and  other  rights  in  them.  (Thompson's  Law 
of  Electricity,  §26.) 

The  legislative  tendency  to  scatter  provisions  relating  to  a  given 
topic  thruout  big  volumes  of  statutes,  putting  some  in  solitary  con- 
finement in  secluded  spots,  and  tucking  others  cosily  under  the 
wings  of  statutes  apparently  belonging  to  an  entirely  different 
species,  together  with  the  very  imperfect  indexing  that  character- 
izes many  of  our  statute  books,  has  made  it  very  difficult  for  the 
writer  and  his  assistants  to  be  absolutely  sure  that  all  the  provis- 
ions relating  to  local  consent  for  street  franchises,  etc.,  have  been 
captured.  If  any  reader  notes  an  omission  and  will  send  to  the 
author  or  publisher  a  reference  to  the  omitted  statute,  the  favor 
will  be  deeply  appreciated. 

A  municipal  right  arising  from  statute  may,  of  course,  at 
any  time,  be  altered  or  repealed.  Theoretically,  therefore,  no 
number  of  such  rights  can  constitute  any  real  municipal  sov- 
ereignty or  assured  power  of  self  government,  such  as  state 
and  nation  enjoy  in  respect  to  their  particular  affairs,  and  such 
as  cities  and  to"\vns  should  enjoy  in  respect  to  their  local  busi- 
ness concerns.  The  practical  fact  accords  with  the  theors'  to 
a  considerable  extent.  jSTew  laws  and  old  ones  not  much  used 
are  easily  changed  if  corporate  interests  require  it.  It  is  not 
necessary  to  repeal.  A  little  insignificant  looking  amendment 
that  may  pass  without  attracting  any  general  attention  can 
tiike  the  life  all  out  of  a  law.  When,  however,  a  law  confer- 
ring important  privileges  has  grown  into  the  life  of  the  people 
and  has  come  to  be  regarded  as  part  of  their  natural  rights, 
it  is  apt  to  be  so  jealously  guarded,  that  it  takes  on  something 
of  the  stability  of  a  constitutional  provision,  tho  it  cannot 
attain  quite  the  same  vigor  and  certainty  until  we  have  the  ref  - 


464  THE  CITY  FOR  THE  PEOPLE. 

erendiim,  for  tlie  legislature  can  act  counter  to  the  people's 
interest  and  vnsh  if  the  motive  be  sufficient,  no  matter  how 
powerful  the  protest  may  be. 

The  statutes  contain  many  laws  affecting  municipal  rights 
which  fall  outside  the  scope  of  Table  II.  Some  of  these  are 
very  interesting.  For  example,  the  Montana  laws  of  1897 
provide  that  cities  and  towns  may  establish  free  employment 
offices,  regulate  and  prohibit  the  wearing  of  hats  and  bonnets 
at  theatres  or  public  places  of  amusement,  provide  for  planting 
trees,  etc.  In  Maine,  any  town  may  raise  money  to  propagate 
fish,  and  I  am  told  that  a  number  of  towns  have  "from 
ancient  times"  municipalized  the  catching  of  a  variety  of  shad. 
Cities  may  buy  and  keep  hay  scales.  This  privilege  is  ac- 
corded municipalities  by  general  law  in  a  number  of  states. 
Also  the  right  to  establish  standard  weights  and  measures. 
By  the  Vermont  statutes  of  1896,  any  city  or  incorporated 
town  can  vote  money  for  free  musical  entertainments,  and  in 
New  Hamj^hire  any  city  or  town  may  provide  coasting  and 
skating  places.  Pretty  soon  we  may  have  general  laws  em- 
powering cities  and  towns  to  purchase  bicycle  pumps  and 
fasten  one  to  every  mail-box  post,  or  fix  them  at  other  con- 
venient intervals,  and  provide  free  lunches  for  bicycle  parties 
on  condition  that  the  women  do  not  wear  skirts  less  than  2-| 
feet  in  length ;  but  what  we  really  want  is  municipal  freedom 
in  the  full  sense,  by  constitutional  enactment  granting  the  in- 
itiative and  referendum,  and  not  statutes  granting  pri^dleges 
in  comparatively  trivial  affairs. 

THE  AWKWARD  SQUAD  AND  THE  HONOR  LIST. 

Considering  the  whole  range  of  legislative  and  constitu- 
tional provisions  in  favor  of  municipal  liberty, 

DELAWARE  AND  MARYLAND  , 

Take  their  places  at  the  tail  of  the  class.  They  seem  strongly 
inclined  to  shirk  general  legislation  favorable  to  mimicipal 
rights.  They  are  almost  total  abstainers  from  the  performance 
of  their  duties  in  this  regard. 


HOME  EULE  FOK  OUB  CITIES.  465 

Yirginia,  North  Carolina,  Alabama,  Arkansas  and  Nevada 
are  only  a  little  f  urtlier  advanced,  and 

THE  NEW  ENGLAiro  GEOUP 

flfl  a  wliole  lias  not  very  mneli  to  be  proud  of.  Neither  baa 
New  York,  and  Louisiana  would  surely  have  a  place  at  the  end 
of  the  procession  were  it  not  for  the  law  of  1896  in  relation  to 
home  made  charters. 

Turning  to  the  head  of  the  column,  let  us  note  the  states 
in  the  front  ranks  of  progress  toward  municipal  liberty.  Con- 
sidering the  volume  and  value  and  the  universality  of  the 
rights  accorded  to  municipalities,  and  taking  into  account  the 
attitude  of  the  courts  on  common  law  principles,  the  use  of 
constitutional  safeguards,  and  the  initiative  and  referendum, 
we  may  perhaps  be  justified  in  placing  on  the  roll  of  honor  the 
names  of  the  following  states: 

IVniSTNESOTA,  CALIFOEINIA,  WASHINGTON,  MISSOURI, 

SOUTH     CAEOLINA,    KENTUCKY,    WISCONSIN,    MICHIGAN, 

INDIANA,  IOWA,  KANSAS,  NEBEASKA,  COLOEADO  AND  UTAH. 

But  even  in  the  best  states  the  law  is  very  impt-fect.  Frag- 
mentary legislation,  unconscionable  repetition  and  miserable 
indexing  characterize  the  bulk  of  our  statutes,  and  make  the 
study  of  statute  law  a  soul-exasperating  business.  Massive 
enactments  loaded  with  ponderous  verbosity  and  repeated 
almost  or  quite  verbatim  at  intervals  thru  the  statutes  imder 
each  division  of  municipalities  and  perhaps  various  other  heads, 
together  with  shreds  of  legislation  touching  the  same  topics, 
scattered  thru  thousands  of  pages,  tied  up  with  other  bundles 
with  which  they  may  be  related  in  some  way,  nestling  in  some 
proviso,  or  paragraph,  or  section  of  a  big  chapter  whose  head- 
ing may  not  lead  you  to  examine  it  for  the  subject  you  have 
in  hand  and  whose  molecular  constitution  is  not  correctly  and 
completely  roistered  in  the  index — these  things  and  ambigu- 
ous wordings,  conflicting  decisions  and  multitudinous  diver- 
gences in  the  laws  and  customs  and  charters  of  the  various 
states  make  it  almost  impossible  to  ascertain  what  the  law  is. 
And  then  the  terrible  waste  of  time  and  space  and  printer's 
ink.    Rhode  Island  is  not  very  large,  but  her  legislative  acts, 

30 


466  THE   BONDAGE   OF   CITIES 

resolutions  and  reports  come  out  each  year  in  a  volume  as  bif^ 
as  a  young  dictionary.  The  Massachusetts  Public  Statutes, 
compiled  in  1882  make  a  big-paged  book  of  1,400  pages;  the 
supplement  to  these  Public  Statutes  for  1882  to  1888  is  a 
volume  of  1,500  pages;  the  supplement  for  1889  to  1895  is 
an  enormous  volume  of  1,700  pages; — thi-ee  big  volumes  with 
4,600  oceanic  pages.  In  addition  to  all  this  the  legisla- 
ture is  manufacturing  a  fat  blue  book  every  year — and 
every  one  is  conclusively  presumed  to  know  the  law.  The 
contrast  between  the  efficiency  of  our  watch  factories,  water 
works,  fire  departments,  post  offi^ce  and  navy,  and  the  ineffici- 
ency of  our  legislative  factories  is  awful.  We  have  already 
spoken  (p.  402)  of  Xew  Jersey's  delicate  creations  in  the  statute 
line,  occupying  over  4,000  pages  and  five  million  words.  The 
city  acts  alone  fill  360  big  pages  ^\H[tli  the  customany  repeti- 
tions as  to  elections,  corporate  powers,  duties  of  officers,  etc. 
Besides  all  this,  there  are  40  big  pages  on  towns,  and  then  we 
have  30  blanket  pages  on  oysters  and  clams,  which  are  not 
more  indigestible  than  these  statutes,  altho  the  legislature  does 
not  put  that  conclusion  in  the  book. 

One  is  tempted  to  say:  "Thi\>w  the  statutes  away  and  begin 
all  over  and  make  the  law  simple  and  concise  so  that  any  one 
can  find  it  and  understand  it  when  he  finds  it."  For  all  local 
services  and  franchises  involving  the  use  of  streets,  let  us  have 
one  little  paragraph  according  full  powers  of  construction, 
purchase,  maintenance  and  operation  of  works  and  systems,  to 
supply  the  municipality  (city,  town  or  village)  and  its  inhabi- 
tants with  water,  gas,  electric  or  other  light,  heat,  power,  street 
railways  or  other  transit  facilities,  telegraph,  telephone,  tele- 
lectroscope  or  any  other  local  service  requiring  a  special  use 
of  the  streets,  or  rights  of  way  and  confening  exclusive  powers 
of  grant  and  control  upon  municipalities  in  respect  to  such 
franchises  and  services.  A  few  such  clauses  carefully  worded 
would  cover  the  whole  field  of  distinctively  municipal  busi- 
ness, including  markets,  ferries,  wharves,  harbors,  parks, 
baths,  lodging  houses,  etc.  Add  a  clause  conferring  the  right 
to  do  anything  not  forbidden  by  valid  law  of  state  or  nation. 
Put  all  these  clauses  in  one  small  section  of  the  constitution. 


TO    POLITICIANS    AND    MONOPOLISTS    MUST    CEASE.  467 

with  another  section  providing  for  the  initiative  and  refer- 
endum and  recall,  another  for  the  merit  system  of  civil  sei-vice, 
and  another  for  proportional  representation — including  the 
women — then  give  municipalities,  subject  to  these  provisions^ 
the  right  to  make  their  own  charters  (on  legislative  approval 
as  to  portions  that  go  beyond  the  said  provisions),  and  you 
have  municipal  liberty  and  a  simplified  law,  so  far  as  it  is  pos- 
sible to  get  them  in  a  state  which  by  necessity  places  the  final 
appeal  upon  the  laVs  interpretation  in  a  supreme  court,  a 
condition  which  might  at  times  weaken,  but  on  the  whole 
would  be  far  more  apt  to  strengthen  the  proposed  constitu- 
tional guaranties.  If,  after  our  states  have  done  some  think- 
ing on  these  lines,  they  will  join  in  a  great  convention  that 
may  lead  to  the  adoption  of  simple  uniform  provisions  on  these 
and  other  fundamental  questions,  the  future  will  be  filled  with 
the  hope  that  legislation  may  some  day  become  a  science. 

CONCLUSIONS. 

In  going  over  the  laws  and  constitutions  of  these  forty-five 
states  from  early  times  to  the  present  year,  a  few  conclusions 
of  special  breadth  and  moment  have  forced  themselves  upon 
my  attention : 

First:  There  is  a  powerful  trend  towards  careful  definition, 
regulation  and  limitation  of  l^islative  power. 

Second:  There  has  been  in  recent  yeai"s  a  tremendous  and 
ever  accelerating  movement  toward  legislation  favorable  to 
public  ownership  and  operation  of  local  utilities,  particularly 
those  that  involve  any  special  or  privileged  use  of  the  streets. 

Third:  There  has  been  an  equally  emphatic  movement 
toward  a  fuller  recognition  of  the  principle  of  local  consent, 
and  the  right  of  the  people  to  be  consulted  about  important 
measures  and  vote  directly  upon  them,  and  the  correlative 
right  to  initiate  legislation  if  they  so  desire. 

Fourth :  The  local  right  to  grant  local  franchises,  elect  local 
officers  and  manage  local  property,  and  the  right  of  munici- 
palities to  frame  their  own  charters  have  also  received  recogni- 
tion. 

Such  are  some  of  the  principal  streams  that  make  up  the 


468  THE  CITY  FOR  THE  PEOPLE. 

current  of  enactaiient  that  is  moving  toward  municipal  liberty 
and  independence  in  respect  to  local  affairs.  And  yet  it  must 
be  admitted  that  no  real  home  rule  has  been  established  be- 
yond the  reach  of  legislative  interference.  Legislatures  still 
have  power  to  alter  or  abolish  charters,  and  may  practically 
annul  even  freehold  charters,  for  they  are  all  expressly  sub- 
ject)  by  constitutional  proviso,  to  the  general  laws  of  the  state. 
We  have  as  yet  no  setting  apart  of  a  local  field  from  which 
state  legislation  shall  be  excluded,  as  national  legislation  is  ex- 
cluded from  state  interests.  Some  of  our  states  have  made  a 
splendid  beginning,  but  the  end  is  not  yet. 


Chapter  IY. 
THE  MERIT  SYSTEM  OF  CIVIL  SERVICE. 

That  the  guide  in  filling  public  places  by  appointment  or 
promotion  should  be  merit,  determined  by  impartial  tests  of 
fitness  for  the  work  to  be  done,  and  that  tenure  should  be  se- 
cure during  good  behavior  and  efficient  service  are  proposi- 
tions too  plain  to  need  argument  except  for  those  who  regard 
public  office  as  a  species  of  private  property,  to  be  wrestled 
for  and  used  for  the  personal  advantage  of  the  winner. 

If  public  employees  were  only  appointed  for  merit  after 
examination  and  trial  during  a  reasonable  period  of  probation, 
under  the  supervision  of  an  intelligent  non-partisan  commis- 
sion; if  heads  of  departments  and  superior  officers  in  general 
were  taken,  not  from  outsiders,  but  as  far  as  practicable  out  of 
the  rank  next  below  in  the  same  department,  and  promotion 
depended  on  merit  alone;  if  appointmeaaitswere  always  for  life 
or  good  behavior;  if  every  appointment,  promotion  and  dis- 
charge were  subject  to  review  in  open  court  at  the  suit  of  an 
injured  applicant  or  employee;  in  other  words,  if  the  public 
business  were  conducted  on  sound  business  principles,  partisan 
politics  would  receive  a  deathblow,  bosses  would  lose  their 
power  because  their  control  of  the  offices  would  be  gone — the 
temptation  to  manufacture  a  lot  of  needless  positions,  with 
beavy  salaries  and  little  to  do,  with  which  to  reward  the  faith- 
ful, would  vanish;  party  assessments  would  not  be  paid,  jus- 
tice, economy  and  efficiency  would  have  a  chance,  and  the 
people's  servants  would  attend  to  the  people's  business  instead 
of  working  to  carry  elections  to  keep  their  places. 

The  need  of  a  change  from  the  spoils  system  to  the  merit 
system  is  abundantly  proved  by  the  facts  recited  in  preceding 
chapters  and  haa  been  emphasized  several  times  already  in 
this  book,  but  a  brief  discussion  of  the  nature  and  results  of 
civil  ser\ace  ref  oann  in  a  chapter  of  its  own  seems  necessary  to 

469 


470  THE  CITY  FOR  THE  PEOPLE. 

throw  the  subject  into  the  strong  relief  its  importance  de- 
mands. 

The  evils  of  the  prevalent  plan  of  treating  public  oflBces  as 
private  property  or  party  spoils,  are  only  too  well  knovs^n  to  every 
one  acquainted  with  governmental  affairs  especially  in  our  larger 
cities.  Large  numbers  of  men  spend  their  lives  seeking  office,  not 
for  the  public  good,  but  for  their  private  emolument.  Election 
trickery,  "political  pull,"  party  organization,  ring-building,  gang- 
construction,  and  the  formation  of  personal  constituencies  of  every 
sort,  occupy  their  minds  to  the  exclusion  of  the  public  good.  These 
men  who  make  a  business  of  capturing  and  keeping  the  offices, 
acquire  a  knowledge  of  political  methods  and  possibilities,  and 
possess  a  degree  of  unscrupulousness,  that  give  them  a  great  ad- 
vantage over  the  ordinary  citizen  with  the  average  conscience  and 
the  average  knowledge  of  jK^litics.  They  gather  about  them  masses 
of  personal  adherents  who  will  vote  for  them  regardless  of  the 
issues  at  stake.  They  pack  primaries  and  conventions;  spend 
money  freely  and  promise  fat  offices  to  their  constituents.  When 
they  win  power,  they  reward  their  most  active  supporters  with 
lucrative  positions  or  boodle  contracts.  If  the  salaries  are  too  low, 
they  have  them  raised.  If  the  offices  are  too  few,  they  create 
new  ones.  Their  appointees  are  not  selected  because  they  are  fitted 
to  do  the  work  well,  but  because  they  can  be  depended  on  to  help 
re-elect  the  appodnter  and  his  party  or  clique.  They  are  not  ex- 
pected to  serve  the  public  but  their  official  creators.  Such  men 
and  methods  are  happily  by  no  means  in  universal  control  even 
in  our  most  imperfect  cities,  but  wherever  they  have  gained  the 
mastery,  inefficiency  and  extravagance  have  been  the  results.  It 
has  been  estimated  that  in  the  various  cdty  departments  where 
these  methods  have  prevailed  in  New  York,  Philadelphia,  Chicago 
and  other  cities,  the  public  has  had  to  pay  from  10  to  200  per 
cent  more  than  the  service  rendered  would  have  cost  if  the  work 
had  been  done  by  a  reasonable  quota  of  men  well  fitted  for  it 
and  devoting  themselves  to  the  public  busiiness  instead  of  party 
or  personal  politics. 

Great  as  are  the  financial  evils  of  private  officialism,  however,  they 
are  insignificant  compared  to  the  political  and  moral  evils.  The 
making  of  politics  attractive  and  lucrative  to  some  of  the  worst 
elements  in  society;  the  control  of  large  masses  of  public  business 
by  the  unscrupulous  instead  of  the  conscientious;  the  disgust  of 
good  men  with  political  affairs  which  often  seem  to  them  to  be 
controlled  by  evil  forces  beyond  their  reach;  the  debasement  of 
government  and  lowering  of  the  ideals  of  youth;  are  of  infinitely 
more  consequence  than  the  money  loss,  great  as  it  doubtless  is. 
To  banish  these  evils  is  of  vital  importance,  but  by  no  means  easy, 
because  the  great  political  organizations  are  largely  based  in  fact 
upon  the  spoils  idea,  and,  whatever  they  say  in  their  platforms, 
they  are  apt  to  resist  its  destruction  in  practice  as  a  man  resists 


THE  MEEIT  SYSTEM  OF  CIVIL  SERVICE.  471 

the  destruction  of  that  upon  which  his  life  and  success  depena. 
There  is  hope,  however,  for  Chicago  and  San  Francisco  have  adopted 
the  Merit  Sj'stem  (Chicago  by  50,000  majority  on  a  referendum  vote, 
and  San  Francisco  in  her  new  charter  also  adopted  by  a  referendum) ; 
the  movement  is  growing  in  various  states  and  in  the  national 
service;  and  it  is  so  clearly  in  the  interests  of  the  people  as  a 
whole  that  it  is  sure  to  come  with  the  growth  of  civic  enlighten- 
ment and  political  common  sense.  The  growth  of  public  owner- 
ship will  force  civil  service  reform.  And  direct  legislation,  by 
weakening  partisanship  and  putting  the  power  of  reform  directly 
in  the  hands  of  the  people,  ^vill  hasten  the  movement. 

The  Merit  System  in  its  turn  will  help  to  abolish  partisanship. 
So  long  as  large  numbers  of  men  hold  office  for  a  settled  term, 
those  in  office  will  organize  to  carrj'  the  next  election  so  as  to 
keep  their  offices,  and  those  who  wish  to  be  in  office  but  are  not, 
will  organize  to  carry  the  election  to  get  their  innings.  The 
ins  and  the  outs  use  every  possible  argument  and  persuasion  to 
win  voters  to  their  side  in  the  contest,  and  political  parties  and 
campaigns  degenerate  into  squabbles  of  two  sets  of  office-seekers. 
Nothing  would  do  more  to  rid  our  cities  and  states  of  the  w^astes 
and  demoralizations  of  partisan  politics  than  the  abolition  of  the 
term  system. 

Civil  service  reform  means  simply  that  appointments  and  pro- 
motions shall  be  governed  by  merit  instead  of  political  influence, 
party  fealty,  relationship  or  personal  interest  of  the  appointing 
officer,  and  that  offices  shall  be  held  during  good  behavior  and 
efficiency  instead  of  being  held  for  a  set  term  or  at  the  whim  of 
a  superior. 

The  economic  value  of  such  a  change  is  a  matter  of  record.  In 
the  Brooklyn  Navy  Yard  according  to  the  statement  of  Command- 
ant Erwin,  the  cost  of  building  warships  was  reduced  25  per  cent 
by  the  civil  service  rules  the  first  year  they  went  into  effect  (1891). 
In  a  single  department  at  Washington  (the  office  of  the  Commis- 
sioner of  Immigration),  $76,526  a  year  were  saved  by  the  abolition 
of  useless  positions  when  the  civil  service  rules  were  applied.^ 
Department  heads  say  that  it  takes  a  new  clerk  6  months  to 
attain  the  efficiency  of  an  old  employe,  and  for  the  last  6  months 
of  his  term,  the  spoils  system  officeholder  devotes  his  thought  and 
his  energy  largely  to  politics  to  the  serious  injury  of  the  business 
of  his  office. 

The  subjection  of  large  numbers  of  employes  to  dismissal  at  the 
arbitrary  will  of  a  public  officer  is  even  more  objectionable  than 
the  term  system.  It  is  simple  common  sense  and  justice  that 
merit   should   determine   appointments   and   promotions,   and   that 


1  Hon.  Carroll  D.  Wright,  who  had  charge  of  the  last  Census  Bureau,  esti- 
mates that  $2,000,000  and  more  than  a  year's  time  would  have  been  saved  if 
the  Census  force  had  been  brought  into  the  classified  service.  He  adds:  "I 
do  not  hesitate  to  say  that  one-third  of  the'  imount  expended  under  my  ad- 
ministration was  absolutely  wasted,  and  wasted  principally  on  account  of 
the  fact  that  the  office  was  not  under  Civil  Service  rules." 


472  THE  CITY'  FOR  THE  PEOPLE. 

employes  should  not  be  dismissed  except  for  cause.  Merit  should 
be  ascertained  by  impartial  methods,  and  employes  dismissed  for 
alleged  cause  should  have  a  right  of  appeal  to  the  courts  that 
the  cause  may  be  judicially  ascertained.  Aside  from  the  economdc 
waste  of  needless  changes  among  the  employes,  it  is  unjust  to 
deprive  an  honest,  efficient  worker  of  the  position  and  opportunity 
on  w^hich  he  and  his  family  depend  for  their  daily  bread, — quite 
as  unjust  as  to  take  from  him  arbitrarily  any  other  right,  prop- 
erty or  possession  of  equivalent  value  to  him. 

Some  points  are  well  put  in  a  leaflet  issued  by  the  Civil  Service 
Association  and  the  Good  Government  League  of  Phila.,  as  follows: 
Under  the  Spoils  System  the  Head  of  a  Department  instead  of 
being  free  to  exercise  his  own  judgment,  is  practically  forced  to 
select  those  who  have  the  most  political  influence,  and  to  pay 
but  little  if  any  regard  to  their  ability  or  fitness.  Under  the  Merit 
System  the  appointing  officer  is  not  only  enabled  but  obliged  to 
select  for  appointment  or  promotion  those  who  will  give  the  public 
the  best  obtainable  service.  Under  the  Spoils  System  each  ap- 
pointment makes  more  enemies  than  friends.  Under  the  Merit 
Sj^stem  no  unsuccessful  applicant  can  complain  of  anything  but 
his  own  deficiencies.  Under  the  Spoils  System  the  offices  are  almost 
monopolized  by  men  of  small  capacity  and  few^  scruples,  and  the 
most  desirable  class  of  employees  are  unwilling  to  apply.  Under 
the  Merit  System  the  examinations  are  open  to  every  citizen,  and 
the  best  are  eager  to  compete  because  their  employment,  retention 
and  promotion  are  made  to  depend  solely  upon  their  merit  and 
fitness,  and  because  the  work  is  honorable,  the  pay  is  certain,  and 
the  opportunities  for  advancenaent  are  many.  The  Public  should 
always  be  able  to  secure  the  most  desirable  applicants,  but  the 
plan  of  selecting  employees  for  any  other  reasons  than  merit  and 
fitness  for  the  duties  to  be  performed,  is  ruinous  to  any  business, 
and  there  is  no  reason  why  the  public  interests  should  be  sub- 
jected to  a  system  which  is  so  utterly  absurd  and  unbusinesslike, 
and  so  prolific  in  all  kinds  of  corruption  and  bad  government. 

The  Si)oils  System  converts  the  offices  which  the  people  pay 
for  into  bribes  and  rewards  for  the  use  of  corrupt  and  demoralizing 
methods  by  unscrupulous  men.  Under  the  Merit  System  the  public 
offices  can  only  be  secured  or  retained  by  superior  efficiency  and 
proved  integrity. 

Under  the  Spoils  System  elected  officials  must  devote  themselves 
to  the  peddling  of  offices  and  the  division  of  patronage.  Under  the 
Merit  System  they  can  give  their  time  and  energies  to  the  legisla- 
tive or  executive  duties  for  which  they  have  been  chosen  and  by 
which  they  can  best  serve  and  secure  the  gratitude  and  esteem 
of  their  constituents. 

Under  the  Spoils  System  a  public  emploj'ee  is  the  political  ser- 
vant or  henchman  of  those  who  have  secured  his  appointment. 
Under  the  Merit  System  he  is  an  American  freeman,  and  can  be 
honest  and  faithful  to  his  public  duties  without  fear  of  punishment 
or  dismissal. 


PROPORTIONAL  REPRESENTATION.  473 

The  most  diflRcult  question  is  that  of  method.  Competitive  ex- 
aminations under  the  supervision  of  non-partisan  commissioners, 
probationary  service,  promotion  on  the  basis  of  ability  and  devo- 
tion as  manifested  by  quality  and  quantity  of  service,  and  the  right 
of  appeal  to  judicial  decision  in  case  of  unjust  discharge,  appear 
to  be  the  most  important  points. 

The  government  of  Massachusetts,  the  Federal  Government  and 
some  of  our  cities  have  made  considerable  progress  in  the  right 
direction,  but  there  are  still  large  classes  of  public  emplo3'es  who 
have  not  been  brought  within  the  ^Merit  System,  and  the  regula- 
tions are  by  no  means  perfect,  espec'ially  in  respect  to  promotion 
right  of  appeal,  retirement,  pensions   and   relief. 

Aside  from  the  Federal  navy  yards,  perhaps  the  most  effective 
rules  are  those  adopted  in  Chicago,  and  in  the  new  charter  of  San 
Francisco  (see  Chap.  Ill,  p.  420).  The  Detroit  electric  plant  is  a 
good  example  of  the  results  of  adhering  to  the  Merit  System  and 
excluding  the  spoils  system  (see  chap.  I,  sec.  XVII).  The  reader 
who  wishes  to  go  more  deeply  into  this  subject  should  send  for  the 
reports  of  the  state  and  national  commissioners,  get  copies  of  the 
various  laws  enacted  and  proposed,  write  to  the  men  who  are  de- 
voting themselves  specially  to  the  movement,  gather  the  pamphlets 
and  addresses  issued  by  the  civil  service  associations  in  Boston, 
New  York,  Philadelphia  and  other  cities  and  considt  the  articles  that 
appear  from  time  to  time  on  the  subject  in  the  leading  reviews.' 


*  In  Boston,  R.  H.  Dana,  Morefleld  Storey,  and  Edwin  D.  Mead  are  lead- 
ers in  this  movement,  also  Pres.  Capen,  of  Tufts,  in  New  York,  Carl  Schurz, 
and  Geo.  McAneuy,  the  secretary  of  the  association  there;  in  Chicago,  Edwin 
Burritt  Smith  and  John  W.  Ely;  and  In  Philadelphia,  Herbert  Welsh  (Pres.), 
Henry  C.  Lea  (\.  Pres.),  and  R.  Francis  "Wood  (Sec),  Charles  Richardson 
and  Clinton  Rogers  Woodruff  of  the  executive  committee, — the  last  being 
also  President  of  the  National  Municipal  League,  member  of  the  Pennsyl- 
vania Legislature  and  author  of  the  civil  service  bill  introduced  into  the  last 
session,  which  would  be  given  here  if  it  did  not  take  so  much  room. 

The  student  should  not  fail  to  get  the  reports  of  the  U.  S.  Civil  Service 
Commission  on  which  the  Hon.  Theodore  Roosevelt  did  such  efficient  work 
some  years  ago.  He  would  do  well  to  visit  the  Brooklyn  Navy  Yard  or  one 
of  the  other  Federal  yards,  to  talk  with  the  men  and  study  the  workings 
of  the  system,  and  by  all  means  write  to  the  Secretary  of  the  Navj-  for  a 
copy  of  the  Navy  rules. 

Civil  service  laws  or  correlated  laws  should  not  fail  to  provide  for  death 
benefits  in  case  of  meritorious  employes,  aid  in  case  of  sickness  or  disability 
and  retirement  on  pension  in  case  of  incapacity  after  long  and  faithful 
service.  This  principle  is  recognized  in  this  country  and  is  broadly  applied 
in  England.  Mayor  Quincy  of  Boston,  and  his  successor  Mayor  Hart,  strongly 
advocate  this  measure  for  all  city  employes.  Mayor  Quincy  says  it  is  valid, 
simply  as  a  business  proposition,  even  aside  from  humanitarian  considerations. 
Heads  of  departments  do  not  like  to  discharge  old  employes  when  they  be- 
come unable  to  do  a  good  days  work.  Superintendent  Bell  of  the  Street  De- 
partment, Boston,  says  that  90  per  cent  of  the  workers  stay  on  year  after 
year  in  spite  of  changes  at  City  Hall;  25  per  cent  of  the  force  are  old  men, 
many  of  whom  should  be  retired  if  full  efficiency  in  the  department  is  to  be 
attained.  If  a  pension  bill  were  passed  tliis  could  be  done.  One-half  the  fund 
for  pension  disability  paymts,  etc.,  might  be  raised  b.v  taxatn  and  the  other 
half  taken  from  the  wages  of  emplo.ves— 2  to  3%  per  cent  of  wages  being  suffi- 
cient according  to  the  experience  of  Liverpool,  Birmingham  and  other  cities. 
The  increased  efficiency  of  the  departments  would  more  than  repay  the  city 
for  its  share  of  the  paymts.  Mayor  Quincy  thinks,  and  relief  of  the  workers 
from  subscriptn  calls  on  deaths,  accidents,  etc.,  would  go  far  toward  balanc- 
ing the  slight  detentions  from  wages.  Our  Mass.  civil  service  law  provides 
for  the  Incoming  of  the  workers  but  not  for  their  outgoing.  This  measure 
would  complete  the  civil  service  law.  Federated  labor  in  Boston  seems  to  be 
a  unit  In  favor  of  the  plan. 


Chapter  V. 

PEOPORTIO^TAL  REPRESENTATION. 

The  initiative  and  referendum  will  put  the  vital  control 
of  legislation  in  the  hands  of  the  people;  but  emergency 
measures  will  in  practice  be  left  to  representatives  as  a  rule, 
and  many  other  laws  will  be  initiated  and  formed,  and  some 
will  be  decided  upon  in  representative  bodies.  Besides  adopt- 
ing direct  legislation,  therefore,  it  is  necessary  to  secure  pro^ 
portional  representation  or  representation  of  each,  class  in  the 
community  in  proportion  to  its  size,  in  order  that  the  deliber- 
ating and  voting  in  legislative  bodies  upon  emergency  meas- 
ures (and  other  bills  that  may  be  passed  or  voted  down  in 
decisions  of  councils  and  legislatures  that  we  allowed  toi  stand) 
shall  be  as  fair  a  substitute  as  possible  for  the  deliberating 
and  voting  that  would  take  place  if  the  whole  community 
considered  the  question  directly  in  a  giant  town  meeting,  or 
a  series  of  small  town  meetings  in  all  the  wards  or  districts. 
Direct  legislation  presents  serious  or  lasting  misrepresentation 
in  the  final  adoption  or  rejection  of  laws;  proportional  repre- 
sentation eliminates  one  source  of  error  in  the  delegate  system 
arising  from  the  non-representation  of  considerable  masses 
of  voters  under  the  district  plan,  and  so  is  an  aid  in  preventing 
serious  or  lasting  misrepresentation  in  the  deliberations  and 
votings  of  legislative  bodies  whether  the  deliberations  and 
votings  are  preliminary  or  final,  advisory  or  conclusive.  Direct 
legislation  secures  due  weight  to  every  class  and  interest  in 
the  decision  of  questions  brought  before  tihe  people  at  the 
polls;  proportional  representation  tends  to  secure  due  weight 
to  every  class  and  interest  in  the  decisions  of  legislative  bodies, 
and  in  forming  their  advisory,  amendatory,  educative,  repres- 
sive or  other  preliminary  action  in  reference  to  questions  that 
go  to  the  referendum.  Direct  legislation  and  proportional 
representation  supplement  each  othei-;  each  can  accomplish 

474 


PROPORTIONAL  REPRESENTATION.  475 

much  without  the  other,  but  they  belong  together,  and  can 
do  their  best  work  only  in  double  harness  as  we  find  them  in 
Switzerland,  Direct  legislation  alone  leaves  the  advisoiy 
and  emergency  action  of  legislators  and  councilmen  very  im- 
perfectly representative,  and  proportional  representation  alone 
leaves  the  legislators  and  councilmen  subject  to  the  tempta- 
tions that  beset  them  now  and  the  errors  of  judgment  that 
warp  their  decisions  from  the  people's  will.  Of  the  two  meas- 
ures, direct  legislation  is,  of  course,  vastly  the  more  important, 
but  every  friend  of  democracy  and  good  government  ought 
to  support  proportional  repi-esentation  also,  for  it  is  a  corollary 
from  the  same  fundamental  principles  of  justice  and  common 
sense  that  prove  the  case  for  direct  legislation. 

The  Legislature  of  a  State  is  called  a  representative  bodj-.  If 
the  citizens  of  a  State  were  few  in  number  and  close  together  they 
would  meet  in  person  to  deliberate  upon  public  affairs  and  pass 
such  laws  as  they  deemed  necessary.  But  when  they  number  mil- 
lions and  live  far  apart,  they  cannot  meet  in  this  way,  and  they 
have  to  select  a  few  persons  to  meet  in  their  place  and  deliberate 
and  legislate  for  them,  just  as  the  stockholders  of  a  corporation 
choose  a  board  of  directors  to  manage  the  business  for  all  con- 
cerned. In  early  times,  the  laws  were  made  in  the  way  first  men- 
tioned, and  the  local  laws  of  many  townships  are  still  enacted  di- 
rectly by  the  citizens  assembled  in  town  meeting.  This  method 
is  a  very  just  and  perfect  one,  for  every  citizen  has  a  right  to  pre- 
sent his  ideas  to  his  fellow  voters,  and  no  law  is  passed  without 
giving  a  full  opportunity  for  hearing  to  those  who  may  object  to  it. 

When  the  increasing  size  of  the  State  or  city  compels  the  people 
to  resort  to  the  representative  system,  they  are  not  always  careful 
to  guard  the  new  plan  against  injustice.  If  there  are  200  Republi- 
cans, 180  Democrats  and  20  populists  in  a  certain  town,  the  ideas 
and  interests  of  the  three  classes  will  have  a  relative  strength  of 
two,  eighteen  and  twenty  in  the  town  meeting.  If  there  are  200.000 
Republican  voters  in  a  certain  State,  and  180,000  Democratic  voters 
and  20,000  Populists,  the  relative  strength  of  the  parties  in  the 
Legislature  should  be  two,  eighteen  and  twenty,  or  one,  nine  and 
ten,  or  some  multiple  of  these  numbers.  If  not,  the  Legislature 
does  not  truly  represent  the  people.  If,  for  example,  the  legisla- 
tors are  all  Republicans,  the  Legislature  clearlj-  does  not  correctly 
represent  the  State,  for  the  State  is  only  half  Republican,  the  other 
half  being  Democratic  and  Populistic.  In  order  that  anj^  legisla- 
tive body  may  be  really  representative,  the  relative  voting  strength 
of  each  class  and  interest  in  the  electing  community  must  be  re- 
produced in  that  body,  otherwise  the  deliberating  and  voting  in 
the  legislative  bodj'  can  have  little  chance  of  being  a  fair  substi- 


476  THE  CITY  FOR  THE  PEOPLE. 

tute  for  the  deliberating  and  voting  which  would  take  place  if  the 
said  classes  and  interests  could  come  together  and  legislate  for 
themselves  directly,  as  in  early  days. 

There  are  two  methods  of  electing  representatives;  the  one  is 
called  the  "District  System"  and  the  other  the  "Proportional  Sys- 
tem." The  former  divides  the  State,  or  city,  or  nation,  into  as 
many  districts  as  there  are  representatives  to  be  chosen,  and  then 
the  people  in  each  district  elect  one  representative.  The  other 
plan  divides  the  number  of  votes  in  the  State,  or  nation,  or  city, 
by  the  number  of  representatives  to  be  chosen,  and  takes  the  quo- 
tient as  the  number  of  ballots  that  will  elect  one  representative, 
no  matter  whether  the  citizens  casting  those  ballots  live  close 
together  or  are  scattered  all  over  the  State.  By  this  plan,  if  there 
were  400,000  voters  in  a  State  and  200  representatives,  2000  votes 
would  elect  a  representative;  any  2000  voters  who  chose  to  unite 
on  the  same  man  could  elect  him,  whether  those  voters  w^ere  lo- 
cated in  a  single  town  or  district  or  were  scattered  from  one  end 
of  the  State  to  the  other;  2000  Prohibitionists  or  Populists  could 
elect  a  representative,  altho  there  might  be  only  a  few  such  voters 
in  any  one  part  of  the  State.  By  the  direct  plan,  on  the  contrary, 
the  Prohibition  Party,  or  People's  Party,  or  any  small  party  could 
not  elect  a  representative  unless  it  had  a  majority  in  some  par- 
ticular district. 

Of  course,  the  party  in  power  favors  the  District  System,  becavise 
it  enables  it  to  crowd  out  the  others.  It  can  divide  up  the  State 
so  that  its  own  voters  shall  have  a  majority  in  all  or  almost  all  the 
districts.  Sometimes  this  is  carried  so  far  that  half  the  citizens 
of  the  Commonwealth  are  practically  disfranchised.  For  example, 
in  Alabama  (1892)  138,000  Democrats  elected  nine  Congressmen,  and 
94,000  Populists  and  Kepublicans  elected  none.  In  North  Carolina, 
133,000  Democrats  got  eight  Congressmen,  and  145,000  Republicans 
and  Populists  only  one.  In  Indiana,  under  a  Democratic  gerrj- 
mander,  259,000  Democratic  votes  elected  11  Congressmen,  while 
253,000  Itepublican  votes  elected  only  2.  At  the  next  Congressional 
election  (1894),  284,447  Republicans  elected  the  whole  13  Congress- 
men, and  238,281  Democrats  elected  none.  New  Jersey,  Massachu- 
setts, and  many  other  states  besides  those  abofe  mentioned,  have 
used  this  Gerrymandering  process,  as  it  is  called,  from  the  name 
of  the  man  who  invented  it.*     In  a  Republican  State  the  process 


1  Continuing  witli  1892,  219,215  Republicans  in  Iowa  elected  10  Congress- 
men, or  1  to  21,921  votes,  while  the  whole  201,923  Democratic  votes  only 
elected  1  Congressman.  In  Kentucky  the  Democrats  got  10  Congressmen 
with  174,360  votes,  or  1  Congressman  for  every  17,436  votes,  while  th?  Re- 
publicans with  122,308  votes  got  but  1  Congressman.  In  Maryland  113,931 
Democrats  got  all  the  6  Congressmen,  or  1  to  19,000  votes,  while  91,762  Re- 

fmblican  votes  failed  to  secure  a  representative.  In  Maine  65,637  Repub- 
Icans  got  all  4  Congressmen,  or  1  to  16,400  votes,  while  55,778  Democrats  got 
none.  In  the  whole  election  12,032,203  votes  were  cast,  and  5,531,965  of  them 
had  no  representative  In  Congress.  A  majority  of  a  quorum,  or  26  per  cent. 
of  the  members,  representing  13  per  cent,  of  the  voters,  can  make  a  law,  so 
that  in  a  country  supposed  to  be  governed  by  the  majority  we  And  minority 
rule  as  an  organized  system,  the  representatives  of  about  %  of  the  voters 
being  able  to  make  laws  for  the  other  %. 

General  Garfield  said  in  the  House  of  Representatives  in  1870,  "In  my 
Judgment  it  is  the  weak  point  in  the  theory  of  representative  government. 


PKOPORTIOXAL  REPRESENTATION.  •  477 

consists  in  ascertaining  the  location  of  Republican  and  Democratic 
voters,  the  strength  and  color  of  the  vote  in  every  locality,  and 
then  mapping  out  the  districts  so  that  there  shall  be  a  majority 
of  Eepublicans  in  every  district,  or  if  that  is  not  possible,  at  least 
the  bulk  of  opposing  parties  can  be  put  by  itself  in  a  few  districts 
and  the  Republican  force  spread  out  over  many  districts,  with 
a  majority  in  each. 

If  there  are  200,000  Republican  voters  in  the  State,  180,000  Demo- 
crats and  200  districts,  it  is  clear  that  the  Republicans  can  carry 
every  district  if  they  can  arrange  the  districts  so  that  there  shall 
be  about  1000  Republicans  and  900  Democrats  in  each  locality.  If 
this  is  not  possible,  the  next  best  move,  in  the  politician's  sense, 
is  to  mark  off  the  localities  that  are  almost  wholly  Democratic. 
A  district  with  1800  Democrats  and  only  100  Republicans  uses  up 
a  lot  of  Democratic  ammunition  in  order  to  hit  the  mark  once. 
If  there  are  30  such  districts  the  Democrats  have  to  waste  54,000 
votes  in  antagonizing  and  overcoming  3000  Republican  votes,  leav- 
ing- the  Democrats  only  126,000  votes  against  197,000  Republicans 
in  the  other  170  districts,  so  that  the  Republicans  have  an  average 
of  1160  against  750  in  the  rest  of  the  State,  and  can  arrange  the 
battle  quite  easily. 

Gerrymandering  politicians  do  not  confine  themselves  to  divi- 
sions which  keep  the  total  vote  of  each  district  at  its  true  level. 
They  often  call  a  large  body  of  the  opposition  a  district,  and  a 
small  body  of  their  own  party  also  a  district.  A  Democratic  town 
of  11,000  people  may  be  marked  off  as  one  district  and  allowed 
to  elect  one  representative,  while  a  Republican  region  of  42,000 
people  will  also  be  constituted  a  district,  and  allowed  to  elect  one 
representative.*  By  such  methods  one  Democratic  vote  may  be 
made  to  count  as  much  as  four  or  five  or  more  Republican  votes, 
and  vice  versa.  In  Iowa,  w^ith  a  little  over  half  the  votes,  w^e  have 
seen    the    Republicans    elect    all    but  1  of    11   Congressmen.     In 


as  now  organized  and  administered,  that  a  large  part  of  the  people  are 
permanently  disfranchised.  There  are  about  10,000  Democratic  voters  in  my 
district,  and  they  have  been  voting  there  for  the  last  40  years  without  any 
more  hope  of  having  a  representative  on  this  floor,  than  of  having  one  in  the 
Commons  of  Great  Britain." 

Equal  suffrage  is  a  clear  deduction  from  the  principle  of  proportional  rep- 
resentation—every class  in  the  community  of  full  age,  good  character,  sound 
discretion  and  civic  interest,  should  be  represented  in  proportion  to  its  size. 
Twenty-six  states  have  recognized  this  in  part  by  giving  women  the  school 
suffrage,  and  four  states  by  according  them  equal  suffrage  on  the  same  terms 
as  men.  The  development  of  this  subject,  however,  lies  outside  the  lines 
laid  down  for  this  book. 

•  The  figures  given  in  the  text  are  not  imaginary,  but  are  taken  from 
the  actual  facts  of  the  New  Jersey  Gerrymander  of  1891-2,  already  referred 
to  In  chapter  I.  Judge  Gasklll,  of  Mount  Holly,  who  was  President  of  the 
State  Republican  League,  had  large  colored  maps  made  of  the  Gerrymander 
and  posted  them  all  over  the  State.  The  tortuous  lines  of  the  district  divi- 
sions, running  regardless  of  justice  or  geometry,  even  leaping  into  the 
middle  of  another  district  to  take  out  a  dangerous  town,  and  the  enormous 
difference  between  the  little  Democratic  districts  and  the  large  areas 
marked  off  for  Republican  districts  startled  the  citizens  of  New  Jersey  when 
brought  clearly  before  their  eyes  in  maps  3  by  4  feet  in  size,  carefully 
drawn  and  printed  In  brilliant  colors.  It  was  one  of  the  best  plans  ever 
adopted  for  the  rapid  education  of  the  voters,  and  it  was  one  of  the 
chief  causes  of  overturning  the  Democratic  ring,  and  making  New  Jersey 
a  Republican  State,  and  better,  a  reasonably  well-governed  State. 


478  •  THE   CITY    FOR    THE    PEOPLE. 

Maine,  not  many  years  ago,  with  53  per  cent,  of  the  voters,  they 
elected  every  Congressman.  In  Kentucky,  the  case  was  reversed, 
and  the  Democrats,  with  56  per  cent,  of  the  votes,  elected  all  but 
1  out  of  10  Congressmen — a  Democrat  in  Kentucky  weighed  as 
much  as  7  Kepublicans.  In  Iowa  a  Democrat  w^eighed  only  one- 
ninth  as  much  as  a  Republican,  and  in  Maine  a  Democrat  weighed 
nothing  at  all.  It  may  help  the  eye  if  we  vary  the  form  of  pre- 
sentation by  tabulating  some  of  the  facts. 

MASSACHUSETTS,   1894. 

Vote.                 Repres.  in  Leg.  Repres.  In  Cong. 

Sen.        House.  Sen.         House. 

Republicans    189,000               36             195  2               13 

Democrats    124,000                4              46  0                0 

One  Democratic  State  Senator  to  31,000  Democratic  votes,  and 
one  Republican  State  Senator  to  5200  Republican  votes.  A  Re- 
publican counts  for  six  Democrats  in  the  State  Senate,  and  in  the 
National  Government  the  Democrats  don't  count  at  all.  On  the 
whole,  a  Republican  in  Massachusetts  has  more  than  ten  times 
as  much  representation  and  influence  in  legislation  as  a  Democrat. 
A  proportional  division  would  give  the  Democrats  15  State  Sena- 
tors, 96  State  Representatives,  1  United  States  Senator  and  5  mem- 
bers of  the  House. 

NEW  YORK,  1895. 

Vote.  Repres.  in  Leg.         Repres.  in  Cong. 

Sen.        House.  Sen.        House. 

Republicans    600,000               35             103                 0               28 

Democrats    510,000              14              47                2                6 

Prohibitionists    25,000 ) 

Labor  Party   21,000  I              10                 0                 0 

People's  Party 7,000  J 

PENNSYLVANIA,   1895. 

Vote.  Repres.  in  Leg.  Repres.  in  Cong. 

Sen.        House.  Sen.        House. 

Republicans    456,000  43  174  2  27 

Democrats    282,000  6  29  0  1 

The  Democrats,  with  more  than  a  third  of  the  voters,  have  only 
one-twelfth  of  the  total  representation  (one-seventh  in  the  State 
Senate,  one-sixth  in  the  State  House,  none  in  the  United  States 
Senate,  one  twenty-eighth  in  the  United  States  House,  equals  one- 
twelfth  of  the  entire  representation,  counting  each  of  the  four 
legislative  bodies  as  an  equal  unit  in  the  government). 

PENNSYLVANLA.,   1896. 

Representation  in 
Vote  for  Pres.       State  Sen.     House.      Congress. 

Republicans 728,300  44  171  27 

Democrats    433,228  6  33  3 

Prohibitionists    19,274 

Others    13,553 

Total 1,194,355 

1  seat  in  Congress  to  each  39,811  votes  of  the  total  ballot. 

Republicans  got    1  seat  in  Congress  to  each    27,000  of  their  vote. 
Democrats      got    1  '*  "  144,000  " 


PEOPORTIOXAL  REPRESENTATION.  479 

A  fair  division  of  seats  in  Congress  would  have  given  the  Re- 
publicans 18,  instead  of  27;  the  Democrats  11,  instead  of  3,  and  the 
Prohibitionists  1,  instead  of  none. 

ITEW   YORK,    1896-7. 

Representation  In 
Vote  for  Pres.       State  Sen.     House.      Congress. 

Republicans 819,838  35  114  29 

Democrats    551,369  14  35  5 

Scattering  50,000 

1  N.  T.  Republican  in  Congress    to  each     27,000  Rep.  votes  in  tlie  State. 
1  N.  Y.  Democrat  "  100,000  Dem.  votes 

With  over  one-third  of  the  votes  the  Democrats  have  one-sixth 
of  the  representation  or  54  of  the  232  seats  in  Legislature  and  Con- 
gress. With  60  per  cent  of  the  votes  the  Republicans  have  nearly 
80  p>er  cent  of  the  members;  in  the  Legislature,  1  Republican  mem- 
ber to  5,400  votes  and  1  Democratic  member  to  11,000  votes;  in 
Congress,  1  IXew  York  Republican  to  27,000  votes  and  1  Democrat 
to  110,000  votes. 

GEORGIA,    1896-7. 

Representation  in 
Vote  for  Pres.      Vote  for  Gov.     Leg.      Congress. 

Republicans    60,091  4  0 

Democrats   94,232  121,049  179  11 

Populists   96,888  36  0 

With  less  than  60  per  cent  of  the  votes  the  Democrats  had  over 
80  per  cent  of  the  legislators  and  100  per  cent  of  the  Congressmen. 

GEORGIA,   1898-9. 

Representation  in 
State  Vote.         State  Sen.     House.     Congress. 

Populists   51,580  0  5  0 

Democrats    118,557  43  170  11 

In  the  State  Senate  the  Democrats  have  1  representative  to  each 
3,000  Democratic  voters,  while  the  Populists  have  51,580  votes  and 
no  representatives.  As  the  total  vote  shows  about  4,000  votes  to 
each  seat  in  the  Senate,  a  fair  apportionment  would  give  the 
Populists  13  Senators  and  the  Democrats  30.  In  the  House  the 
Democrats  have  1  representative  to  700  votes  and  the  Populists 
1  to  10,300  votes.  In  Congress  the  Georgia  Democrats  have  1  mem- 
ber to  each  11,000  votes,  while  the  Populists  have  no  representa- 
tives to  51,580  votes. 

IOWA,  1898-9.  f"" 

Representation  In 

State  Vote.  State  Sen.     House.     Congress. 

Republicans    236,524  38  62  11 

Fusionists   173,000  12  38  0 

1  la.  Republican  in  Congress  to  eacli    22,400    Rep.  votes  In  the  State. 

0  la.  Fuslonist  173,000     Fusion  rotes  " 

Here  the  case  is  reversed:  the  Republicans  have  1  representative 
in  the  National  Senate  and  House  to  each  22,400  votes,  while  the 
Democrats  and  Populists  have  173,000  and  no  representation  in 
Congress. 

KANSAS,    1898-9. 

Representation  In 
State  Vote.     '    State  Sen.     House.     Congress. 

Republicans    149,853  12  90  7 

Fusionists 133,983  28  32  1 

1  Kansas  Republican  in  Congress  to  each     21.000  Rep.  votes  In  the  State. 
1  Kansas  Fuslonist  "  133,983  Fusion  votes  " 


480  THE  CITY  FOB  THE  PEOPLE. 

The  State  Senate  was  a  holdover  from  a  preceding  election,  but 

the  House  shows  1  Kepublican  to  about  1,600  votes  and  1  Fusionist 

to  about  4,000.    And  in  Ck)ngress  the  Kansas  Eepublicans  have  1 

representative  to  21,000,  while  the  Dentiocrats  and  Populists  have 

1  to  133,983  votes. 

VIEGINIA,   1897-8. 

Representation  in 
State  Vote.         State  Sen.     House.     Congress. 

Democrats 109,655  35  95  10 

Eepublicans 56,840  4  4  0 

1  Va.  Democrat  In  Congress  to  each  10,960  Dem.  votes  In  the  State. 

0  Va.  Republican  "  to  56,840  Rep.  votes  " 

The  Eepublicans  with  over  one-third  of  the  votes  have  less  than 

one-sixteenth  of  the  State  representation  and  no  representation  in 

Congress;  34  per  cent  of  the  total  vote  and  a  trifle  over  5  per  cent 

of  the  seats. 

WISCONSIN,  1898-9. 

Representation  In 
State  Vote.         State  Sen.     House.     Congress.  , 

Eepublicans    173,137  31  81  10 

Democrats   135,353  2  19  0 

1  Wis.  Republican  In  Congress  to  each  17,314  Rep.  votes  in  the  State. 

0  Wis.  Democrat  "  to  135,353  Dem.  votes  " 

The  Democrats  have  over  40  per  cent  of  the  votes  but  less  than 
20  per  cent  of  the  representation. 

OHIO,  1898-9. 

Representation  in 
State  Vote.         State  Sen.     House.     Congress. 

Democrats    347,074  18  47  6 

Eepublicans   408,213  17  62  15 

The  Eepublicans  have  1  man  in  Ck)ngress  to  each  27,000  votes,  and 
the  Democrats  1  to  57,000.  A  fair  division  would  give  the  Demo- 
crats 10  and  the  Eepublicans  11. 

MICHIGAN,    1898-9. 

Representation  in 

State  Vote.         State  Sen.  House.     Congress. 

Eepublicans    210,721                26  81                12 

Democrats    139,307                  0  0                  0 

S.  M.  D 30,729                  6  19                  0 

Scattering 14,000 

1  Mich.  Republican  in  Congress  to  each  18,000 Rep  votes  in  the  State. 

0  Mich.  Democrat  "  to  139,300Dem.  votes 

The  Eepublicans  with  54  per  cent  of  the  votes  have  all  the  Con- 
gressmen; 1  national  representative  to  each  18,000  votes,  and  184,- 
000  Democratic  and  other  votes  vnth  no  representative  in  the 
National  House  or  Senate.  With  proportional  representation  the 
Eepublicans  of  Michigan  would  have  but  7  places  in  Congfress, 
instead  of  12. 

PEITNSYLVANIA,   1898-9. 

Representation  in 
State  Vote.         State  Sen.     House.     Congress. 

Democrats    358,300  13  71  10 

Eepublicans    476,206  37  127  20 

Pro.  &  Pop.  Fusionists 127,804  0  6  0 

1  Pa.  Republican  In  Congress  to  each  23,800  Rep.  votes  In  the  State. 
1  Pa.  Democrat  "  35,800  Dem.  votes  " 

0  Pa.  Fusionist  "  127,800  Fusion  votes  " 


PROPORTIONAL  REPRESENTATION.  481 

With  less  than  half  the  votes  the  Eepublicans  have  two-thirds 
of  the  representation,  while  the  Fusionists  with  13  per  cent  of  the 
votes  have  only  about  2  per  cent  of  the  representation;  1  Penn- 
sylvania Kepublicau  in  Congress  to  each  23,300  votes,  1  Democrat 
to  35,800  votes,  and  no  Fnsionist  to  127,800  votes. 

MASSACHUSETTS,   1898-9. 

Iloprespntatlon  in 
State  Vote.         State  Sen.     House.     Congress. 

Eepublicans    191,146  33  165  10 

Democrats    107,760  7  65  3 

1  Mass.  Republican  in  Congress  to  eacli  19,114  Rep.  votes  in  the  State. 

1  Mass.  Democrat  "  36,000  Dem.  votes 

1  Mass.  Repuljlican  in  the  State  Sen.  to  each  5.800  Rep.  votes  in  the  State. 

1  Mass.  Democrat  "  "  15,400Dem.  votes  " 

With  over  one-third  of  the  votes  the  Democrats  have  about  on&- 
sixth  of  the  representation  in  the  State  Senate  and  one-fourth  of 
the  Congressional  representation;  1  Republican  in  the  State  Senate 
to  5,800  votes  and  1  Democrat  to  15,400  votes. 

The   trouble   exists   in   respect  to   City   Councils   and   Boards   of 

Alderman   as  well  as  Legislatures   and  Congresses.     In  1892,   with 

59  per  cent  of  the   votes,   Tammany   elected  every   one   of  the   30 

Aldermen.     Even  with   a  minority   of   the   votes  it  has   been   able 

to   elect   21.     In   1897,   with    48    per   cent   of   the   votes,    Tammany 

elected   86  per  cent  of    the    Borough   Council   of    Manhattan   and 

Bronx   (New  York  proper).  Councllmen 

One       should  have 
Vote  for  Councilmen    Council-  been 

Mavor.  Elected.       man  to    apportioned. 

Tammany    143,666  31  4,630  votes            17 

Citizens  Union    77,210  4  19,300       "                  9 

Eepublicans    55,834  1  55,834       "                  7 

Jeffersonian  Dems 13,076  0  2 

Socialists   9,796  0  1 

Scattering  1,357  0  0 

Total  vote 300,939 

or  8,360  votes  to  each  seat  in  Council. 

Here  the  Eepublicans  elected  only  1  Councilman  Avith  55,834  votes, 
while  Tammany  elected  1  Councilman  for  every  4,630  Tammany 
votes. 

Wherever  the  student  may  be,  if  he  will  compare  the  composi- 
tion of  the  vote  at  any  election  with  the  membership  of  Legislature 
or  Council  resulting  from  that  vote,  he  will  discover  a  condition 
of  things  similar  to  that  above  described.  The  composition  of  the 
Legislature  is  not  like  the  composition  of  the  vote.  The  Legisla- 
ture does  not  represent  the  people,  it  misrepresents  them — it  over- 
represents  some  classes  and  under-represents  others.  The  weaker 
parties  are  crowded  out.  Xew  ideas  have  little  chance.  The  doors 
of  debate  are  closed  against  them.  Progress  is  retarded.  Injustice 
is  done.  Government  of  the  people,  by  the  people  and  for  the  peo- 
ple is  transformed  into  government  of  the  people  by  a  class  and 
for  a  class. 

Several  reforms  are  neceSsary  to  overcome  the  injustice  and 
perversion  of  governmental  functions  that  have  followed  the 
31 


482  THE  CITY  FOR  THE  PEOPLE. 

change  from  direct  government  by  the  assembled  people  to  rep- 
sentative  government  so  called.  One  of  these  reforms  is  Propor- 
tional Representation,  as  already  explained,  and  is  the  only  method 
by  which  a  legislative  body  can  be  made  to  represent  truly  the 
people  who  elect  it.^  Under  this  system,  if  there  is  one  representa/- 
tive  to  each  2000  voters  in  the  State,  2000  voters  can  unite  on  a 
man  to  represent  their  views,  and  can  elect  him.  There  can  be  no 
portioning  off  into  districts,  with  a  majority  of  opposing  votes  in 
every  district  to  leave  our  2000  voters  in  a  hopeless  minority-  in 
each  locality,  as  is  continually  the  case  in  every  State  and  city  to- 
day. Under  Proportional  Representation,  the  Republicans  can  have 
one  representative  for  every  2000  votes  the3'  possess,  and  the  Demo- 
crats, Populists,  Prohibitionists,  Social  Democrats — every  class  and 
shade  of  interest  and  opinion — may  also  have  just  as  many  repre- 
sentatives as  it  has  multiples  of  2000  votes.  Every  class  will  enter 
into  the  Legislature  in  substantially  the  same  proportion  that  it 
enters  into  society.  The  Legislature  will  become  a  miniature  of 
the  State — a  political  photograph  true  to  the  life,  instead  of  a 
grievous  caricature,  as  it  is  at  present. 

The  justice  of  the  proportional  plan  appeals  very  strongly  to 
every  honest  man  as  soon  as  he  knows  the  facts.  States  and  cities 
are  so  big  and  complex  that  we  do  not  stop  to  cipher  out  their 
operations  verj  carefully,  and  this  negligence  of  the  people  gives 


'  For  a  detailed  discussion  of  the  methods  by  which  the  principle  of  pro- 
portional representation  may  be  put  in  practice,  see  the  book  on  Proportional 
Representation,  by  Professor  John  R.  Commons,  President  of  the  National 
League  for  Securing  Proportional  Representation.  See  also  Direct  Legisla- 
tion Record,  Vol.  VI.,  p.  47.  where  a  detailed  account  Is  given  of  the  actual 
use  of  proportional  representation  in  electing  the  Committee  on  Resolutions 
at  the  Buffalo  Conference.  A  brief  description  of  an  actual  case  (except  as 
to  the  names  by  which  the  candidates  were  called)  may  make  the  method 
clear  to  those  unacquainted  with  the  system.  Suppose  a  city  council  of  12 
members  Is  to  be  elected.  Each  voter  writes  on  his  ballot  the  names  of  12 
candidates  In  the  order  of  his  preference,  or  he  places  numoers  from  1  to  12 
in  the  order  of  preference,  in  front  of  the  names  ho  chooses  on  a  printed  list 
of  candidates.  Suppose  1800  votes  are  cast.  Dividing  1800  by  12  the  number 
to  be  elected  we  find  that  150  votes  will  elect  a  councilman.  The  ballots 
are  sorted  into  piles  according  to  the  first  choice  names  and  the  piles  ar- 
ranged In  order  according  to  the  number  of  votes  in  each  pile.  Treatem  and 
Pulleni  and  Buyem  have  210,  195  and  167  votes  respectively,  and  Popular 
Confidence  has  300.  so  60.  45,  17  and  150  votes  are  taken  from  their  piles  to 
be  distributed  to  the  other  piles,  each  ballot  being  given  to  the  first  candi- 
date in  the  order  of  preference  named  on  it  who  is  in  need  of  a  vote.  Then 
we  go  to  the  foot  of  the  twenty  piles  (or  whatever  the  number  of  candidates 
voted  for  may  be)  and  find  3  candidates  with  only  1  first  choice  vote  each; 
these  are  declared  out  of  the  count  and  their  ballots  distributed  as  above. 
Next  we  find,  at  the  bottom  of  the  line,  2  candidates  with  3  votes  each,  and 
these  are  declared  out  and  their  ballots  distributed.  Then  the  lowest  can- 
didate Is  found  to  have  15  votes  and  these  are  distributed.  So  we  continue 
going  up  the  list,  redistributing  at  every  step  the  ballots  in  the  smallest  pile 
until  only  12  piles  remain,  when  the  candidates  to  whom  those  piles  belong 
are  declared  elected. 

Another  plan,  where  there  are  distinctly  marked  parties  with  party 
tickets  In  the  field,  is  to  distribute  the  representation  among  the  parties  in 
proportion  to  the  vote  of  each.  If  there  are  20  councUmen  to  be  elected  and 
the  Republicans  cast  one-half  the  votes  they  would  have  10  seats  in  council 
to  be  filled  by  the  10  Republican  candidates  polling  the  highest  votes.  If 
the  total  vote  were  50,000.  the  unit  of  representation,  or  number  of  votes 
entitled  to  one  representative,  would  be  50.000  divided  by  20  (the  number  of 
seats),  or  2,500,  and  each  party  would  have  its  many  representatives  as  it  has 
"units."  If  there  are  remainders,  the  odd  seats  go  to  the  largest  remainders 
(in  the  order  of  their  size)  till  all  the  seats  are  distributed. 

In  its  ethics  and  its  political  effects  the  plan  of  expressing  first  and  sec- 
ond choice,  etc.,  and  giving  the  seats  to  'the  individual  candidates  having 
the  requisite  "unit"  number  of  votes  Is  far  preferable  to  the  division  of 
representation  on  party  lines. 


PREFERENTIAL  VOTING.  483 

the  rascals  their  chance.  If  50  men  had  some  business  they  could 
not  attend  to  in  person,  and  20  were  interested  to  have  it  managed 
one  way,  and  30  wanted  it  another,  and  they  agreed  to  choose  5 
men  to  manage  the  business  for  them,  every  one  would  see  at  once 
that  the  30  owners  should  elect  3  of  the  managers  and  the  20  own- 
ers the  other  two.  But  in  politics  the  30  would  be  apt  to  capture 
the  entire  5.  If  that  were  done  in  the  simple  case  we  just  put, 
the  20  owners,  defrauded  of  their  rights,  would  vigorously  rebel — 
they  w^ould  see  that  it  was  just  the  same  as  if  every  member  of  a 
board  of  arbitration  was  chosen  by  one  party  to  the  controversy; 
but  in  politics  the  thing  is  so  big  and  misty,  for  lack  of  careful 
thought  on  our  part,  that  we  allow  our  rights  to  be  trampled  upon 
with  impunity,  and  in  Republican  States,  hundreds  of  thousands 
of  Democrats  and  Populists  pay  taxes  w^ithout  representation,  and 
vice  versa  in  Democratic  States,  and  never  dream  that  they  are  sub- 
mitting quietly  to  far  greater  injustice  than  that  which  caused 
their  fathers  to  break  into  open  rebellion  in  1776.  No  rebellion  is 
needed  now,  but  only  a  little  discussion,  a  little  organization  and 
a  few  thoughtful  votes.* 


*  Illinois  has  provided  for  the  local  submission  to  the  people  of  the  ques- 
tion of  minority  representation  in  the  city  council  or  legislative  body  of 
the  city.  (111.  Rev.  Stats.,  1898.)  A  number  of  Swiss  cantons  have  pro- 
portional representation  in  full  operation  (see  p.  351)  and  Belgium  has  just 
adopted  the  system. 


Chapter    VI. 
PREFERENTIAL    VOTING 

OB 
EXECUTIVE  ELECTIONS  BY  MAJOKITIES  IN  PLACE  OF  PLURALITIES. 

While  we  seek  tlim  proportional  representation  to  make 
oiir  legislative  bodies  represent  the  whole  people  so  far  as 
possible,  we  should  adopt  the  majority  ballot  or  pi*eferential 
vote  (election  of  the  condidate  preferred  to  all  others  by  the 
majority  of  citizens  voting)  for  the  filling  of  sole  offices,  so 
that  oiir  executive  and  administrative  officers  may  also  repre- 
sent the  whole  people  so  far  as  possible.  Under  our  present 
system  of  district  and  plurality  voting,  executive  officers  may 
be,  and  frequently  are,  elected  by  a  minority  of  those  voting 
at  the  election,  and  legislative  bodies  may  represent  a  minority 
or  a  small  majority,  whereas  executive  officers  should  repre- 
sent a  majority,  and  legislative  bodies  shordd  represent,  sub- 
stantially the  whole  people.  The  latter  may  be  accomplished 
by  proportional  representation  so  far  as  the  election  of  per- 
sons can  accomplish  it,  and  the  former  object  may  be  attained 
by  effective  or  preferetitial  voting.  A  few  words  will  make 
the  matter  clear. 

When  three  or  more  candidates  stand  for  the  mayoralty  or 
other  sole  office,  a  plurality  elects;  whereby  it  frequently  happens 
that  the  successful  candidate  is  chosen  by  a  minority  of  the  citizens 
voting.  Mayor  Van  Wyck  elected  in  New  York  in  1897  had  only 
a  minority  of  the  votes  cast.  Theodore  Roosevelt  was  elected  Gov- 
ernor of  New  York  (1898)  by  a  minority  of  the  votes  cast.>  And 
the  same  was  true  of  Governor  Stone  elected  in  Pennsylvania  the 
same  year.  Here  is  the  list  of  the  Presidents  of  the  United  States 
who  were  elected  by  minorities: 


^  Good  men  may  be  elected  by  plurality  vote.  The  verv  same  men  who 
would  be  elected  by  majority  vote,  very  likely,  if  the  preferences  of  the 
people  were  fully  expressed.  In  another  class  of  cases  the  majority  choice 
might  be  inferior  to  the  plurality  choice.  But  in  a  larger  class  of  cases  the 
majority  choice  would  probably  be  superior.  The  man  chosen  by  the  majority 
would,  on  the  average,  be  more  likely  to  have  the  interests  of  the  whole 
people  at  heart  and  be  a  fair  representative  of  the  whole  community,  than 
the  man  chosen  by  a  minority.  Whatever  the  result  in  any  particular  case, 
If  we  are  to  have  government  by  the  people  we  must  register  the  choice  of 
the  majority.  ■'ft-  e. 

484 


PBEFEBENTTAL  VOTING.  485 

Polk,  1844.  Hayes,  1876. 

Taylor,  1848.  Garfield,  1880. 

Buchanan,  1856.  Cleveland,  1884  and  1892. 

Lincoln,  1860.  Harrison,  1888, 

Lincoln  had  less  than  40%  of  the  popular  vote  in  1860.  The  de- 
tails of  two  or  three  cases  will  show  how  the  plurality  rule  works 
toward  such  results. 

Vote  for  President,  1892. 

Rep.  Dem.  Pop.  Pro.         Plurality. 

Wisconsin   170,790         177,335  9,909         13,132         6,544  I> 

Ohio  405,187         404,115         14,850         26,012         1,072  R 

Nebraska 87,213  24,943         83,134  4,902        4,079  R 

Here  were  23,000  Populist  and  Prohibition  voters  in  Wisconsin, 
40.000  in  Ohio,  and  88,000  in  Nebraska,  who  were  substantially  dis- 
franchised since  they  had  no  voice  in  deciding  the  vital  isssue 
between  the  Republican  and  Democratic  candidates.  In  order  to 
express  their  deepest  convictions  they  had  to  throw  away  their 
votes.  There  is  not  the  least  necessity  for  this  injustice,  nor  the 
smallest  justification  for  minority  rule  thru  executives  chosen  by 
pluralities  below  the  majority  line. 

I  have  no  complete  list  of  Gubernatorial  elections,  but  upon  the 
partial  lists  at  hand  I  find  the  following  cases  of 

Election  of  Governor  by  a  Minority  of  the  Votes  Cast. 

Illinois,  1888.  Nevada,   1898. 

Iowa,    1891.  New  York,  1898. 

Kansas,   1882,  1890.  North  Carolina,   1896. 

Massachusetts,  1892.  Ohio,  '85,  '87,  '89,  '91. 

Michigan,  '78,  '82,  '84,  '90.  Pennsylvania,  1898. 

Minnesota,    '86,    '90,    '92.  Rhode  Island,  '90,  '91,  '93. 

Nebraska,  1894.  Tennessee,  '92,  '94. 

In  Kansas,  1890,  the  Governor-elect  had  less  than  40  per  cent  of 

the  votes  cast.    In  Nebraska,  1898,  the  vote  stood: 

Rep.  Dem.  Pop.  Silver.  Plurality. 

3,548  2,060  813  3,570  22   S 

The  Silver  candidate,  with  only  about  37  per  cent  of  the  votes 
cast  was  elected  Governor  on  a  plurality  of  22,  but  1,425  short  of 
half  the  votes  cast.  One  or  two  thousand  majority  might  really 
have  preferred  one  of  the  other  candidates  to  the  Silver  man  if 
the  choice  had  been  narrowed  to  two  men,  so  that  each  voter  could 
express  himself  on  the  real  issue,  or  if  the  candidates  had  been 
grouped  in  couplets  and  every  voter  had  stated  his  choice  in  each 
couplet.  This  in  effect  is  what  Preferential  Voting  accomplishes, 
not  by  actually  dividing  the  candidates  into  couplets  so  as  to  pair 
each  candidate  with  every  other,  but  by  asking  each  voter  to 
designate  his  second  choice  as  well  as  his  first  choice,  thus  ascer- 
taining the  preferences  of  the  citizens  and  giving  the  election  to 
the  candidate  who  is  preferred  to  the  other  candidate  by  the  majority 
of  the  voters. 

Suppose  Richard  Croker,  Theodore  Rposevelt,  and  Henry  George 
are  running  for  Mayor  of  New  York,  and  the  vote  stands,  Croker, 
120,000;  Roosevelt,  100,000,  and  George,  80,000;  by  the  plurality  rule 


486  THE  CITY  FOk  rSE  PEOPLE. 

Croker  would  be  elected,  and  yet  very  likely  all  or  nearly  all  the 
Georg-e  men  would  prefer  Eoosevelt  to  Croker,  and  all  or  nearly 
all  the  Roosevelt  men  would  prefer  Georg-e  to  Croker,  the  real 
majority  sentiment  of  the  community  being  against  Croker,  even 
to  putting  him  third  on  the  list  instead  of  first,  and  his  election 
being  due  simply  to  the  division  of  his  opponents  and  the  plurality 
rule  which  practically  disfranchises  a  large  part  of  the  citizens 
by  preventing  any  expression  of  their  wishes  as  to  part  of  the 
issues  at  stake.  The  80,000  George  men  were  allowed  t6  express 
themselves  on  the  issue  George  v.  Eoosevelt,  and  on  the  issue, 
George  v.  Croker,  but  on  the  issue  Croker  v.  Eoosevelt  they  had 
no  opportunity  to  state  their  decision,— they  had  no  voice  in  deter- 
mining the  election  as  between  Eoosevelt  and  Croker.  The  120,000 
Croker  men  had  nothing  to  say  on  the  issue  George  v.  Eoosevelt. 
And  the  100,000  Eoosevelt  men  were  disfranchised  so  far  as  the 
choice  between  Croker  and  George  is  concerned.  They  were  al 
lowed  to  express  themselves  on  the  issue  Eoosevelt  v.  George  and 
on  the  issue  Eoosevelt  v.  Croker,  but  not  on  the  issue  George  v. 
Croker. 

There  are  three  ways  of  overcoming  the  difficulty.  (1).  A  second 
election  may  be  held  in  which  only  the  two  candidates  standing 
highest  in  the  first  election  are  voted  for  again.  (2).  Second,  third, 
etc.,  elections  may  be  held  without  restriction  as  to  candidates 
until  some  one  receives  a  majority  of  the  votes  cast.  (3).  Each 
voter  in  the  first  election  may  express  his  first  choice  and  his 
second  choice,  and  the  candidate  who  is  preferred  above  all  others 
by  the  majority  of  voters  will  be  elected.  The  first  method  is  often 
used  in  meetings  where  the  voters  are  assembled  and  can  wait 
the  result  of  the  first  ballot.  It  would  be  too  expensive  in  a  city 
or  state  election,  and  is  very  imperfect  anyway,  since  the  third 
or  fourth  candidate  on  the  list  of  the  first  choice  votes,  may  be 
preferred  by  the  majority  to  any  of  the  candidates  preceding  him 
on  the  list.  The  second  method  is  used  in  nominating  conventions, 
but  could  not  be  used  in  state  or  municipal  elections  because  of 
the  time  and  expense  it  involves.  The  third  method,  however, 
solves  the  problem  for  general  elections.  It  is  very  simple  when 
once  understood,  and  is  inexpensive  and  effective. 

Suppose  it  were  applied  in  the  Croker,  George,  Eoosevelt  case 
above  suggested,  with  the  following  vote: 

Preferential  Vote  for  Mayor  of  New  York. 
A  number  of 

voters  equal  to  65,000         55,000     |         95,000  5,000         )         80,000 

write  or  mark 

as  their 
1st  choice Croker,    Croker     |     Eoosevelt,  Eoosevelt     |     George, 

2d  choice ..  Eoosevelt,  George  j  George,  Croker  |  Eoosevelt 
The  ballots  which  name  Eoosevelt  before  or  to  the  exclusion  of 
Croker  (100,000  Eoosevelt  firsts  and  80,000  George  firsts  with  Eoose- 
velt second)  are  counted  as  so  many  preferences  for  Eoosevelt  above 
Croker.    And  the  ballots  which  name  Eoosevelt  before  or  to  the 


THE  ELECTRIC  BALLOT.  487 

exclusion  of  George  (100,000  Koosevelt  firsts  and  65,000  Croker  firsts 
with  Eoosevelt  second)  are  preferences  for  Roosevelt  above  George. 
Taking  each  couplet  or  possible  combination  of  two  candidates 
and  working  out  the  majority  preferences'  we  have: 

175,000  voters  prefer  George  to  Croker. 

180,000  voters  prefer  Koosevelt  to  Croker. 

165,000  voters  prefer  Roosevelt  to  George. 
Roosevelt  is  preferred  to  either  of  the  other  candidates,  and  ip 
elected  by  30,000  majority  over  George,  and  60,000  majority  over 
Croker,  instead  of  Croker's  ■  being  elected  by  20,000  plurality,  as 
would  be  the  case  under  present  methods.  If  there  were  four  can- 
didates instead  of  three,  each  voter  should  state  his  third  choice  as 
well  as  his  first  choice  and  second  choice.  I  have  found  the  system 
very  simple  in  practice  and  its  justice  appeals  to  every  fair  mind. 
Those  who  believe  in  proportional  representation  should  push  for 
preferential  voting  also,  for  it  is  based  on  the  same  principle,^  and 
accomplishes  the  same  purpose  in  reference  to  the  election  of  sher- 
iffs, mayors,  governors  and  other  executive  or  administration  offi- 
cers, that  is  accomplished  by  proix)rtional  representation  in  re- 
spect to  the  election  of  legislative  officers,  or  members-at-large  of 
boards  and  commissions,  i.  e.,  it  makes  the  election  of  officers  con- 
form to  the  principle  of  representing  the  icliole  people  so  far  as 
possible. 

^  In  smnining  up  the  preferences  only  the  results  that  represent  majority 
preferences  are  put  in  the  list  from  which  the  final  result  fs  deduced.  For 
example,  120.000  ballots  put  Croker  first,  and  5,000  ballots  put  Roosevelt 
first  and  Crolcer  second,  so  that  125,000  voters  prefer  Crolier  to  George,  but 
as  this  is  less  than  a  majority  we  do  not  put  it  in  the  list  of  effective  prefer- 
ences. The  total  vote  being  300,000,  and  only  125,000  preferring  Crolser  to 
George,  we  should  find  the  remainder,  175,000,  preferring  George  to  Crolser, 
which  is  the  case,  80,000  placing  George  first,  and  95,000  Roosevelt  first  and 
George  second.     This  being  a  majority  preference  we  place  it  in  our  list. 

^  It  is  the  correlative  also  of  direct  legislation  in  respect  to  one  of  the 
most  important  uses  of  the  referendum.  Direct  legislation  enables  the  voter 
to  express  himself  clearly  on  each  measure  issue,  and  the  preferential  ballot 
enables  him  to  express  himself  distinctly  on  each  candidate  issue. 


Ohaptee  Vii. 
THE  AUTOMATIC  BALLOT, 

OB 
VOTING  AND  COUNTING  BY  MACHINERY. 

The  hopes  of  America  cluster  about  th©  ballot  box.  All 
the  great  movements  discussed  in  preceding  chapters  are  based 
on  the  ballot.  To  secure  the  best  means  of  recording  the 
popular  will  is  a  matter  of  the  utmost  moment,  and  in  this 
connection  the  recent  invention  of  voting  machines,  in  which 
the  vote  is  automatically  recorded  beyond  the  reach  or  knowl- 
edge of  tampering  officials  or  unscrupulous  politicians,  offers 
an  improvement  worthy  the  careful  attention  of  all  honest 
and  progressive  citizens,  particularly  municipal  officei-s  en- 
trusted with  the  execution  of  the  ballot  laws,  state  legislators 
who  make  those  la^vs,  and  others  specially  related  to  the  con- 
duct of  elections. 

A  secret  ballot  is  very  essential  to  honest  and  independent  voting. 
It  prevents  the  briber  from  knowing -v^hether  or  no  the  purchased 
voter  does  as  he  was  bidden.  The  employer  cannot  tell  how  his 
workmen  vote,  and  so  their  positions  are  safe.  It  was  thought 
that  the  Australian  ballot  would  meet  this  w^ant,  and  to  a  consid- 
erable extent  it  does.  It  is,  however,  by  no  means  fraud-proof. 
Scheming  men  have  found  a  way  to  make  it  their  ally,  instead  of 
their  foe.  They  obtain  a  blank  ballot  from  a  corruptible  officer,  or 
one  of  the  ring,  when  he  goes  in  to  vote,  puts  the  ballot  in  his 
pocket,  and  votes  something  else.  Then  they  mark  the  ballot,  and 
give  it  to  No.  1  purchased  voter;  he  conceals  it,  goes  into  the 
booth,  puts  the  blank  that  is  given  him  into  his  pocket,  votes  the 
marked  ballot,  and  returns  with  the  blank,  as  the  condition  of 
getting  his  vote  money;  this  blank  is  marked  for  the  next  pur- 
chased vote,  and  so  on  all  day. 

There  is  a  method,  however,  which  overcomes  this  and  several 
other  defects  of  the  present  system— I  mean  the  ballot  by  elec- 
tricity, or  by  automatic  voting  machines,  wrhich  have  been  tried  in 
a  number  of  places  with  splendid  success.  The  voter  goes  alone 
into  a  closed  booth;  the  names  of  the  candidates  are  on  the  wall, 
the  ticket  of  each  party  being  on  a  special  color,  so  that  a  voter 
can  tell  the  candidates,  even  if  he  cannot  read  their  names.  After 
the  name  of  each  candidate  is  a  button,  which,  if  pushed,  records 
one  vote  for  that  candidate,  and  locks  itself,  and  all  the  buttons 

4H8 


THE  ELECTKIC  BALLOT.  489 

of  other  candidates  for  the  same  office.  When  the  voter  comes  out 
of  the  exit  door,  the  entrance  door  and  all  the  buttons  are  released, 
and  the  booth  is  readj^  for  the  next  voter.  The  votes  are  counted 
by  electric  machinerj-,  and  as  soon  as  the  polls  are  closed  the  un- 
biased electric  count,  protected  from  tampering  hands  by  netted 
wire,  is  disclosed  to  the  public. 

This  sj^stem  puts  an  absolute  stop  to  ballot  stuffing  and  Ifox  steal- 
ing and  false  counting.  It  checkmates  bribery  by  its  perfect  se- 
crecy-— no  marked  ballot,  no  going  into  the  booth  with  a  voter, 
no  telling  whether  the  voter  did  as  he  agreed  to  or  not — he  may 
have  taken  the  monej-  and  voted  his  own  opinion  after  all — a  very 
discouraging  outlook  for  tue  buyer.  The  electric  ballot  is  cheap 
after  the  jfirst  cost,  securing  a  marked  economy  over  our  present 
methods  bj-  lessening  the  number  of  voting  booths  and  election 
judges,  saving  in  printing,  etc.  It  is  rapid  and  accurate,  and  can 
be  adapted  to  preferential  voting,  proportional  representation  and 
the  referendum.  It  does  not  prevent  repeating,  however,  nor  the 
nomination  of  bad  men,  nor  will  it  pull  the  apathetic  citizens  of 
the  wealthy  districts  to  their  duty  at  the  polls.  Increased  weight  of 
public  business,  thorough  civic  education,  lively  good-government 
clubs  and  nominations  by  direct  referendum  vote  of  the  people  are 
the  medicines  needed  to  cure  those  diseases.  The  ballot  machine 
will  not  do  everything,  but  it  has  nevertheless  a  most  useful  part 
to  perform  in  the  purification  and  simplification  of  elections. 

Several   states   have    already-   authorized  the    use  of    automatic 

ballot  machines. 

Massachusetts,  Chap.  465,  Laws  of  1893;  Chap.  498,  1896. 

New  York,  c.  764,  1894;  c.  73,  1895;  c.  168  and  c.  340,  1898;  c.  466.  1899. 

Connecticut,  c.  263  and  c.  335,  1895.    (See  also  p.  712,  Laws  of  1895.) 

Michigan,  c.  97,  Complied  Laws  1897. 

Indiana,  c.  155,  1899.     (See  also  Chap.  151,  1895.) 

Minnesota,  c.  315.  1899. 

Nebraska,  c.  28,  1899.    (Action  by  authorities  or  on  10  per  cent,  initiative.) 

Ohio,   p.   277,   1899.    (Referendum   adoption   of   machines   necessary.) 

The  Massachusetts  laws  authorize  the  use  of  the  "McTanunany" 
voting  machine.^  Connecticut  has  authorized  "Myers"  and  "McTam- 
niany."  The  other  states  named  permit  the  use  of  any  reliable 
voting  machine.  The  most  important  test  yet  made  of  voting  by 
machinery,  so  far  as  I  know,  wha  the  one  which  occurred  at  Roch- 
ester, X.  Y.,  Xov.  8,  1898.  The  experiment  w^as  a  great  success, 
and  established  bejond  doubt  the  perfect  practicability,  and  im- 
mense utility  of  the  automatic  balllot.- 


^  The  Massachusetts  law  of  1896  provided  for  the  purchase  by  the  State 
of  McTammany  machines  to  be  supplied  to  cities  and  towns  by  the  Secretary 
of  the  Commonwealth,  on  request  of  the  board  of  aldermen  or  selectmen. 
From  the  Secretary's  office  1  learn  that  the  McTammany  machines  were 
tried  in  Worcester,  but  did  not  prove  satisfactory. 

The  first  law  in  Massachusetts  only  authorized  the  use  of  the  automatic 
ballot  for  the  election  of  town  officers.  The  later  law  included  all  officers. 
And  the  Connecticut  law  includes  all  public  officers  and  all  propositions  to  be 
voted  upon.  This  is  much  the  better  form  as  it  makes  the  law  broad  enuf 
to  cover  the  use  of  the  automatic  ballot  for  referendum  voting. 

-  At  the  elections  in  Rochester,  73  "Standard"  voting  machines  were  used. 
The  "Standard"  operates  even  more  simply  and  conveniently  than  the 
machine  described  in  the  text.  Levers  or  handles  are  used  instead  of  electric 
buttons  and  the  votes  are  not  recorded  or  fixed  until  the  voter's  exit,  so  that 
changes  may  be  made  and  mistakes  rectified  up  to  the  moment  of  leaving  the 
booth.     The  citizen  who  wishes  to  vote  "straight"  can  vote  his  whole  ticket 


490  THE  CITY  FOB  THE  PEOPLE. 

by  moving  a  single  lever.  Or  he  may  vote  for  individuals  here  or  there  on 
two  or  more  of  the  tickets  by  moving  the  handles  opposite  the  names  of  the 
candidates  he  selects.  Arrangements  are  also  made  for  voting  for  persons 
not  named  on  any  of  the  tickets,  a  column  of  openings  being  provided  each 
covered  by  a  steel  slide,  which,  when  pushed  back,  locks  the  corresponding 
office  line,  and  permits  the  voter  to  write  the  name  of  any  person  he  chooses 
on  a  roll  of  paper. 

The  New  York  State  Commission  on  Voting  Machines  (consisting  of  P.  F. 
Dodge,  President  of  the  Mergenthaler  Linotype  Co.,  Robert  H.  Thurston, 
Professor  of  Mechanical  Engineering,  Cornell  University,  and  H.  B.  Parsons, 
Mechanical  Engineer,  New  York)  reported  January  10,  1898,  that  the  Stand- 
ard Machine  was  accurate  and  effective,  safe,  strong,  reliable  and  rapid. 
One  machine  will  register,  under  reasonable  cooditions,  the  votes  of  600 
voters  within  election  hours. 

Neither  the  writer  nor  the  publisher  have  the  slightest  pecuniary  interest 
in  the  Standard.  We  speak  of  it  so  fully  simply  because  it  was  the  machine 
used  at  Rochester  In  the  most  important  test  of  voting  machines  yet  made, 
so  far  as  we  know.  In  i-eference  to  the  use  of  these  machines  in  Rochester, 
Hon.  Geo.  E.  Warner,  Mayor  of  the  city,  writes: 

Mayor's  Office,  Rochester,  N.  Y.,  Nov.  15,  1898. 

In  the  light  of  the  experience  had  in  the  recent  election  in  Rochester, 
and  from  the  unqualified  approval  of  all  the  city  and  election  officials,  and 
the  general  satisfaction  expressed  by  men  of  all  i)arties,  from  the  leaders  to 
the  humblest  voter,  I  cannot  see  that  anything  is  wanting  to  constitute  a 
perfect  voting  machine. 

It  stood  the  test  without  a  hitch  of  any  character.  It  would  seem  the 
long-sought  perfection  in  a  voting  system  has  at  last  been  found,  and  I 
doubt  not  its  adoption  will  become  general  in  the  very  near  future. 

Its  opponents  in  the  city  all  seem  to  be  converted,  and  the  verdict  is 
unanimous. 

The  following  items  from  Rochester  papers  immediately  after  the  elec- 
tion throw  additional  light  on  the  subject: 

Rocfiester  Democrat  and  Chronicle. — Voting  by  machinery  is  unquestionably 
a  vast  improvement  upon  any  of  the  methods  heretofore  employed,  aside 
from  the  celerity  and  accuracy  with  which  the  results  are  made  known,  the 
ease  with  which  the  vote  is  registered  must  commend  itself  to  every  citizen. 

Rochester  will  get  out  of  the  election  much  cheaper  than  the  other  cities 
of  the  State  by  reason  of  the  use  of  the  ballot  machines.  They  will  save  the 
city  about  $5,000  annually. 

Rochester  Post  Express.— The  Standard  Voting  Machine  was  used  In  the 
city  yesterday  and  the  result  was  a  triumph  for  the  new  method.  Returns 
were  received  so  promptly  that  The  Post  Express  extra  issued  before  7 
o'clock  gave  the  full  vote  of  the  city.  The  total  vote  in  the  city  was  known 
at  6  o'clock,  the  polls  having  closed  but  one  hour  before. 

Union  and  Advertiser.— The  Standard  ballot  machines  worked  perfectly. 
In  no  other  city  in  the  country  was  the  result  known  as  early  as  in 
Rochester. 

Rochester  Herald. — Messengers  on  bicycles  carried  the  returns  to  head- 
quarters. The  first  came  at  5:06,  Just  6  minutes  after  the  polls  closed,  and 
the  last  came  at  5:37.  The  exact  figures  of  the  city  vote  were  announced  3 
hours  earlier  than  usual.     *     • 

The  Rochester  record  of  complete  returns  for  73  districts  in  37  minutes 
Is  indeed  a  revelation.  (If  we  had  municipal  telephones  the  result  would  be 
known  In  10  or  15  minutes  in  a  city  like  Rochester.  F.  P.)  There  were  no 
errors  In-  the  election,  no  breaks  in  the  machines,  no  delays  in  the  voting, 
and  no  voters  disfranchised. 

In  respect  to  the  last  point,  it  may  be  noted  that  according  to  the  returns 
given  by  the  New  York  Secretary  of  State,  122,080  defective  ballots  were 
thrown  out  of  the  election  of  1897. 

With  the  voting  machines  there  is  no  such  thing  as  a  defective  ballot; 
no  throwing  out  of  votes;  no  miscount,  no  fraudulent  returns.  The  auto- 
matic count  Is  there  in  full  view  of  the  public  as  soon  as  the  voting  is  done. 
No  tell-tale  marks  or  heavy  print  reveals  the  attitude  of  the  voter.  No 
ballot  box  officials  can  tell  how  the  citizen  votes.  The  machine  affords  each 
voter  an  opportunity  to  vote  in  absolute  secrecy;  to  vote  rapidly,  and  in  the 
most  convenient  way  possible;  to  vote  a  straight  party  ticket,  by  operating 
one  knob  which  moves  all  the  Indicators  on  that  ticket;  to  vote  as  he  may 
choose  from  candidates  from  any  party,  or  for  persons  not  named  on  any 
ticket;  and  to  examine  the  ticket  he  has  voted  and  make  any  changes  he 
desires,  until  he  Is  satisfied  with  his  choice,  before  registering  it  and  leaving 
the  booth.  The  register  of  the  total  vote  is  In  full  view  thruout  the  election 
BO  there  can  be  no  stuffling  the  ballot  by  ringing  up  votes  before  the  polls 
are  opened. 

Buffalo  has  bought  108  Standard  voting  machines  and  will  use  them  in 
November,  1899.  Wm.  E.  Corcoran,  Deputy  City  Clerk  of  Buffalo,  writes 
that  "For  several  years  the  City  of  Buffalo  has  been  discussing  the  advisa- 
bility of  conducting  its  elections  by  the  use  of  machines,  but  it  was  not  until 
this  year  that  the  project  took  definite  shape.  After  a  most  thorough  and 
comprehensive  examination  into  the  merits  of  the  different  voting  machines, 
the  saving  that  could  be  accomplished  by  their  introduction,  and  the  accuracy 
with  which  the  returns  could  be  filed,  it  was  finally  decided  to  purchase  108 
of  the   Standard  voting  machines.     By  buying  these  machines  the  number 


THE   EXPEKIENCE   OF   EXGLAJfD.  491 

of  voting  precincts  In  the  City  were  cut  down  from  155  to  108,  resulting  in  a 
saving  of  four  inspectors  of  election,  two  poll  clerks  and  two  ballot  clerks 
in  each  of  the  47  election  districts,  and  the  saving  of  two  ballot  clerks  in  the 
remaining  108  districts.  This,  with  the  saving  on  the  printing  of  ballots 
and  other  incidental  expenses,  will  result  in  a  saving  to  the  City  of  Buffalo 
of  about  $20,000.  The  machines  cost  $55,000,  and,  thru  an  arrangement 
with  the  manufacturers,  they  are  paid  for  out  of  the  saving  made,  one-fourth 
to  be  paid  each  year;  the  first  payment  to  be  made  in  cash,  interest  bearing 
warrants  being  issued  for  the  balance  of  the  payments;  these  to  be  taken  up 
each  year  from  the  appropriation  made  for  election  expenses.  Thus,  within 
about  three  years  the  City  will  own  all  of  the  machines  and,  at  the  same 
time,  the  expenses  of  elections  will  be  materially  reduced.  After  the 
machines  are  paid  for  there  will  be  an  annual  saving  of  over  $20,000  in  the 
expenses  of  conducting  elections. 

"One  of  the  machines  has  been  on  exhibition  in  the  oflSce  of  the  City 
Clerk  for  several  weeks,  and  in  that  time  over  3,000  people — all  strangers  to 
the  machine— have  operated  it  and  studied  it.  some  of  them  giving  it  very 
severe  usage,  but  up  to  the  present  time  the  machine  has  not  failed  to 
operate  properly.  Every  one  who  has  examined  the  machine  is  enthusiastic 
over  it,  because  of  its  simplicity,  the  freedom  of  the  voter  from  losing  his 
vote  or  spoiling  his  ballot,  and  the  rapidity  with  which  the  returns  can  be 
filed  after  the  close  of  the  election." 

A  note  from  the  Typographical  Journal  has  just  come  to  hand  (Nov. 
1899)  to  the  effect  that  the  voting  for  officers  this  year  in  Typographical 
Union,  No.  1.,  was  conducted  on  a  Turner  voting  machine,  which  proved  a 
great  success.  The  largest  vote  that  was  ever  known  to  be  polled  in  the 
history  of  No.  1  was  cast.  The  result  was  known  five  minutes  after  the 
polls  closed.  The  machine  does  its  own  counting;  makes  its  own  tally 
sheets.    It   eliminates  all   possibility   of  fraud. 


Chapter  VIII. 

THE  BEST  MEA]S:S  OF  OVEKOOMIIS^G  POLITICAL 
CORRUPTION 

THE     EXPERIEKCE     OF     ENGLAND. 

In  order  to  overcome,  we  must  understand  the  nature  of  that 
which  is  to  be  overcome.  In  the  old  story  of  Sampson,  as  soon  as 
the  Philistines  found  out  that  the  lenglih  of  their  enemy's  hair 
was  the  source  of  his  strength,  they  easily  overcame  him;  and 
when  afterward,  in  his  blindness  and  captivity  he  succeeded  in 
getting  his  arms  about  the  pillars  that  supported  the  temple  of 
iniquity,  he  brought  it  in  ruins  to  the  ground.  We  may  imitate 
his  example  in  respect  to  the  temple  of  fraud,  only  I  hope  the 
people  who  pull  it  down  will  not  be  buried  in  the  ruins. 

Let  us  investigate  the  nature  and  causes  of  political  corruption. 
In  the  early  days,  when  the  people  met  together  and  made  the 
laws  directly,  and  elected  men  well  known  to  them  all,  to  enforce 
those  laws,  and  kept  the  strict  and  continuous  watch  of  their 
officers  that  is  possible  in  a  little  town,  corruption  was  almost, 
or  quite  unknown.  But  when  the  Commonwealth  grew  too  large 
for  such  methods,  and  representatives  were  sent  to  a  distant  city 
to  enact  the  laws,  and  most  of  the  officers  commissioned  to  admin- 
ister the  law  were  not  personally  known  to  their  constituents- 
many  of  them  being  appointed  and  not  elected — when  large  en- 
terprises were  to  be  undertaken  by  the  public,  heavy  contracts  to 
be  awarded,  rich  franchises  to  be  bestowed,  innumerable  offices 
to  be  filled — then  fraud  began  to  grow.  It  would  be  hard  to  buy 
up  the  whole  people  to  vote  against  their  own  interests,  but  it 
is  easy  to  go  to  a  few  men  away  off  in  a  legislative  chamber  out 
of  the  reach  of  the  people,  and  buy  up  some  of  them  to  vote,  not 
against  their  own  interests,  in  a  worldly  sense,  but  merely  against 
the  people's  interests.  So  corrupt  legislation  crept  in  through 
the  gap  that  was  made  by  removing  legislation  from  the  bodj'  of 
the  citizens  to  a  few  representatives  comparatively  safe  from  popu- 
lar surveillance  so  long  as  the  people  do  not  possess  the  power  of 
reading  the  minds  of  their  legislators,  but  have  to  be  content  with 
reading  their  speeches. 

The  increasing  size  of  the  community  makes  it  easier  also  to 
corrupt  the  administration  of  the  law.  In  a  small  town  every 
one  knows  what  is  being  done,  and  a  hue  and  cry  is  raised  at 
once  if  it  bears  a  suspicious  look.  But,  in  a  large  city,  or  in  a 
State,  the  very  distances  and  the  enormous  mass  and  intricacy  of 
the  public  business  discourage  and  defeat  the  watching  of  it.    The 

492 


THE  EXPERIENCE  OF  ENGLAND.  493 

president  of  a  great  corporation  can  take  the  mayor  or  an  alder- 
man to  dinner  at  some  puff  hotel — they  may  have  a  good  talk, 
and  five  or  ten  thousand  dollars  may  pass,  and  no  one  know  it  but 
the  two  concerned.  And  with  a  few  repetitions  of  such  ceremonies 
it  may  be  possible  that  the  board  of  aldermen  will  see  'that  the 
improvement  of  the  city  requires  the  giving  of  a  new  privilege  to 
the  great  corporation.  A  builder  of  roads  may  have  a  few  similar 
interviews  in  person,  or  through  his  fast  friends,  or  paid  agents, 
and  get  a  fine  contract  for  paving  the  streets  at  double  the  worth 
of  the  sort  of  work  he  puts  in.  Officers  of  law^  may  make  some 
money  in  other  ways  than  taking  bribes  for  franchises,  or  going 
shares  in  the  unjust  profits  of  public  contracts.  They  may  sell 
the  appointments  they  control  to  the  highest  bidder,  or  fill  the 
places  with  men  who  will  turn  over  part  of  their  revenue  to  the 
appointer,  or  they  may  levy  a  tax  on  violators  of  the  law  for  im- 
munity from  arrest  and  prosecution,  or  pursue  the  innocent  with 
false  charges,  and  compel  them  to  pay  for  a  cessation  of  the  an- 
noyance. 

It  may  happen  that  honest  legislators  are  elected  and  honest 
officers  appointed.  The  bribers,  contractors  and  blackmailers  are 
baffled,  but  only  for  a  moment.  "If  the  people  are  going  to  put 
such  men  as  this  in  ofiice,  we  must  carry  the  elections  ourselves, 
that's  all."  In  general,  the  wicked  do  not  need  a  blockade  in  order 
to  turn  their  attention  to  the  capture  of  the  ballot  box.  The  value 
of  the  legislative  and  administrative  power  in  facilitating  their 
business,  giving  them  contracts,  franchises,  fat  offices  and  oppor- 
tunities of  plunder,  is  too  apparent  to  leave  them  long  in  doubt 
as  to  the  advisability  of  combining  to  carry  the  elections  in  their 
own  interests.  So  they  cook  up  the  nominations,  capture  the  prim- 
aries, bribe  voters,  hire  repeaters,  stuff  ballot  boxes  and  count  by 
an  arithmetic  of  their  own  invention,  of  peculiar  flexibility  and 
adaptation  to  the  needs  of  the  case  in  hand.  So  the  "ring,"  or 
gang  of  robbers  succeeds  in  seating  its  own  creatures  on  legislative 
cushions  and  aldermanic  chairs,  and  the  government  becomes  a 
private  enterprise  in  which  the  rascals  squeeze  the  public — a  sj's- 
tematic  scheme  to  transfer  as  large  an  amount  as  possible  of  the 
people's  wealth  to  the  coffers  of  the  ring  and  its  friends.  If  there 
are  not  enough  offices  to  acconamodate  the  said  friends,  new  offices 
are  easih'  made.  If  the  salaries  are  not  large  enough,  they  are 
easily  made  larger.  It  is  astonishing  how  easy  it  is  to  do  what 
one  wants  to  do  when  one  has  the  absolute  power  of  government 
over  a  wealthy  people,  too  ignorant,  or  apathetic  to  audit  the  plans 
of  their  rulers. 

Open  your  ej'es  and  glance  at  a  few  of  the  pustules,  carbuncles 
and  cancers  that  adOrn  the  body  politic.  Go  to  Chicago  and  find 
the  board  of  aldermen  giving  away  franchises  worth  five  millions 
a  j-ear  for  personal  considerations  running  from  one  or  two  hun- 
dreds to  $25,000  a  vot-e.  Go  to  Philadelphia  and  hear  the  statement 
of  a  lormer  political  boss,  that  only  three  members  of  the  Select 
Ck>uncil  refused  the  $.5,000  fee  offered  bv  the  Reading  road  when  it 


494  THE  CITY  FOB  THE  PEOPLE. 

was  struggling  to  overcome  the  opposition  of  the  Pennsylvania 
road  to  its  terminal  on  Market  street,  and  remember  his  added 
remark,  that  he  was  not  one  of  the  three.  Go  through  the  South 
and  look  at  the  delicate  system  of  stealing  and  stuffing  ballot 
boxes,  counting  by  poetic  license,  shooting  objectors  and  reform- 
ers, etc. — look,  but  don't  make  too  many  remarks,  or  you  may 
acquire  wings  prematurely.  It  is  a  crime  to  express  your  thoughts 
in  Georgia,  Mississippi  and  Alabama,  unless  they  agree  with  the 
ideas  of  those  in  control,  but  it  is  a  very  virtuous  action  to  whip 
or  shoot  a  black  man  if  he  votes  the  wrong  ticket,  and  to  send 
in  140,000  Democratic  votes  from  a  district  where  there  are  not 
over  30,000  voters,  all  told,  is  not  only  a  highly  meritorious  and 
public  spirited  act,  but  one  that  strongly  partakes  of  the  miracu- 
lous powers  of  olden  times,  which  some  skeptical  people  have  en- 
deavored to  make  us  believe  exist  no  more.  Come  North  again, 
and  go  to  Washington,  and  see  how  the  Sugar  Trust  makes  our 
laws;  read  the  long  records  of  election  frauds,  purchased  seats, 
Credit  Mobilier  scandals.  Star  Route  frauds,  subsidy  steals  and 
railroad  robberies  of  well  toward  200  millions  of  acres  of  public 
land  and  many  millions  of  money.  Then  visit  Harrisburg,  and 
find  that  the  Pennsj-lvania  Eailroad  Company  knows  just  how  to 
press  the  button  to  make  the  Pennsylvania  Legislature  dance  any 
jig  that  suits  the  railroad  fancy.  It  defies  the  constitution  of  the 
State,  but  the  legislature  remains  in  a  kneeling  posture,  and  even 
the  Supreme  Court  is  said  by  a  prominent  legal  writer  to  be  com- 
pletely under  its  infiiience.  Move  on  to  Jersey  City  and  investigate 
its  records.  You  will  imagine,  at  first,  that  you  have  returned  to 
the  bosom  of  the  South.  But  3'ou  will  note  after  a  little  that  you 
can  speak  without  danger  of  cold  lead.  The  science  of  voting,  how- 
ever, has  been  cultivated  almost  as  successfully  in  Jersey  City  as 
in  any  part  of  Dixie.  A  ward  politician,  in  control  of  an  assembly 
district,  doctored  the  returns  and  put  his  party  in  power.  The 
fashion  spread,  and  the  Abbett  ring  became  the  absolute  masters 
of  city  and  State.  An  alliance  was  made  with  the  infamous 
gambling  dens  of  Guttenburg  and  Gloucester,  and  as  we  have  seen, 
the  State  was  gerrymandered  in  the  hope  of  securing  perpetual 
power.  Great  masses  of  Republican  voters  were  mapped  in  a  single 
district,  so  as  to  have  but  one  representative,  while  small  bodies  of 
Democratic  voters  were  constituted  separate  districts,  so  as  to 
give  a  Democratic  voter  more  than  four  times  the  weight  of  a  Re- 
publican; innumerable  new  bureaus  and  superfluous  offices  of  all 
sorts  were  created  for  the  ringsters,  public  expenditure  and  tax- 
ation rose  alarmingly.  In  1892,  sixty-five  enactments  were  passed 
providing  for  new  and  needless  offices  that  involved  the  appoint- 
ment of  2624  persons,  and  swelled  the  salary  list  of  the  State  over 
a  quarter  of  a  million.  The  second  year  of  Abbettism  the  expendi- 
ture was  $916,339  in  excess  of  former  figures — over  60  per  cent  ad- 
dition to  the  State  expenses — nearly  a  million  a  year  transferred 
from  the  people  to  the  ring.  Jersey  City  suffered  the  most.  The 
local  government  was  all  in  the  hands  of  the  ballot  stuffing  ring. 


THE  EXPERIENCE  OF  ENGLAND.  495 

Hid  the  robbery  was  enormous.  Taxation  intensified  accordingly, 
and  property  declined  in  value  in  proportion.  Prices  of  real  estate 
fell  more  than  50  per  cent,  in  two  or  three  years.  "The  Bacot 
House,"  I  quote  from  the  New  York  Tribune  of  April  7,  1892, 
"which  cost  $23,000,  brought  only  $8.  JOO.  The  Vredenberger  House, 
which  cost  $25,000,  was  sold  for  $8100,  and  the  Davy  Mansion, 
which  cost  $40,000,  was  disposed  of  for  $17,000.  These  are  only 
specimens;  they  are  classed  among  the  finest  properties  in  the 
city." 

At  first,  ballot  box  stuffing  was  a  fine  art,  and  was  carefully 
done.  Then  it  became  a  recognized  profession,  highly  rewarded, 
and  after  a  time  it  became  so  common  that  no  art  was  employed; 
it  was  simply  unskilled  labor,  and  the  rough  hands  boasted  of 
their  work  in  public  places.  Then  a  reaction  came.  The  Grand 
Jury  indicted  some  of  them.  It  was  proved  that  the  voting  lists 
contained  thousands  of  bogus  names;  that  locksmiths  had  been 
employed  to  pick  the  locks  of  ballot  boxes;  that  numbers  of  small 
ballots  had  been  voted  inside  the  larger  ones;  that  other  ballots 
had  been  milled  and  stamped  in  a  private  machine,  and  voted  in 
handfuls.  Some  of  the  stuffers  were  sentenced — many  of  the  worst 
ones  were,  by  some  powerful  infiuenee,  saved  from  prosecution, 
and  even  the  sentenced  men  were  carefully  provided  for  by  their 
warm  friends  and  allies  in  power.  Every  one  of  the  rogues,  and 
the  lawyers  who  defended  them,  received  an  appointment,  and 
some  of  the  sentenced  stuffers  were  continued  as  officers  in  control 
of  elections.  But  a  change  has  come.  The  Coal  Combine  legisla- 
tion of  1892  (undoubtedly  bought  through  both  Houses  at  heavy 
cost),  and  the  infamous  laws  of  1893,  protecting  certain  forms  of 
gambling  in  the  interests  of  the  Gloucester  race  track  syndicate, 
and  the  posting  of  the  Gerrymander  maps  all  over  the  State,  roused 
the  people,  and  they  threw  off  the  yoke  of  their  oppressors. 

Take  a  trip  across  the  river  to  New  York,  and  turn  the  pages  of 
a  few  of  her  massive  investigations  and  judicial  records  of  fraud 
and  corruption;  learn  from  the  treasurer's  testimony  how  the 
New  York  Central  spent  $200,000  a  year  to  get  legislation  it  wanted; 
and  examine  Jay  Gould's  evidence  that  the  Erie  expended  more 
than  a  million  in  a  single  year  to  control  legislation.  Watch  the 
movements  of  the  Oil  Trust,  as  it  buys  judgeships,  senatorships, 
cabinet  positions  even,  and  bends  the  National  Government,  State 
Legislatures  ana  a  score  of  railroads  to  act  its  will.  Read  the 
fearful  records  of  the  Lexow  Investigation,  proving  the  police  foroe 
to  have  been  corrupt  from  top  to  bottom — an  organized  body  of 
brigands,  systematicallj'  protecting  criminals  and  breakers  of  the 
law  for  the  sake  of  robbing  them  of  the  profits  of  their  unlawful 
pursuits.  To  the  government  of  New  York  a  law  seemed  merely 
an  opportunity  for  personal  aggrandisement  thru  the  pressure  it 
put  upon  some  corporation  or  class  of  citizens,  who  could  be  made 
to  yield  blackmail  and  immunity  moiiey.  True,  the  people  have 
risen  against  the  ring.  But  will  their  virtuous  indignation  last' 
I  hope  so,  but  history  is  not  encouraging.     It  was  not  so  very  long 


496  THE  CITY  FOR  THE  PEOPLE. 

ago  that  this  same  oity  of  Xew  York,  after  being  systematically 
robhed  of  tens  of  millions  during-  a  period  of  five  or  six  years, 
rose  in  rebellion  and  dethroned  the  Tweed  Ring,  and  then  went 
home  to  let  Tammany  mature  a  new  plan  to  capture  the  public 
pocket — a  task  it  speedily  accomplished.  The  people  become 
aroused  to  adequate  exertion  onlj'  when  things  become  utterly 
unendurable,  and  then  let  their  ptablic  spirit  go  to  sleep  until  the 
rogues  once  more  sui-pass  the  bounds  of  possible  endurance.  This 
spasmodic,  geyserlike  virtue  will  never  do — we  must  have  a  steady 
Niagara  to  wash  out  the  filth  from  our  public  life  and  keep  it  out. 

Leave  the  city  and  travel  through  the  State  about  the  time  of 
election;  you  will  find  the  Avorkers  of  both  parties  busily  engaged 
in  raising  funds  and  studying  voters  preparatory  to  buying  the 
election.  A  careful  record  of  purchasable  voters  is  kept,  with  the 
price  of  each.  In  some  parts  of  Ncav  York  these  purchasable  voters 
outnumber  the  membership  of  either  party.  In  many  localities 
20  to  35  per  cent,  of  the  voters  can  be  and  have  been  boiight.  In 
one  township  not  more  than  30  out  of  400  votes  are  incorruptible; 
in  another  place  not  one  of  the  200  voters  is  proof  against  money. 
Sometimes  40  or  50  voters  are  sold  in  a  lump  by  one  leadei*.  Prices 
ordinarily  run  from  $2  to  $5  a  head,  but  in  close  years  competition 
sometimes  puts  the  figures  up  to  $8,  $10  or  even  $20,  and  there  is 
an  account  of  a  good  (?)  church  deacon  and  his  son  who  sold  their 
votes  for  $40  each  to  the  manager  of  their  own  party,  who  wished 
to  keep  them  from  deserting  to  the  enemy.  Similar  facts  come  to 
us  from  Vermont,  Rhode  Island,  New  Jersey,  Michigan  and  other 
States.  It  is  said  that  such  methods  prevail  to  a  greater  or  less 
extent  in  all  the  Northern  and  Western  States;  they  are  not  neces- 
sary in  the  South,  for  much  quicker  and  moi'e  reliable  methods 
have  been  discovered  there. ^ 

The  funds  for  all  this  merchanting-  of  citizenship  are  obtained 
by  voluntary  contributions  and  by  assessments  upon  those  who 
hold  office,  from  policemen  up,  and  upon  those  who  wish  to  hold 
office.  In  New  York  city  a  candidate  for  mayor  is  assessed  $20,000, 
a  congressional  candidate  the  same,  an  alderman  about  $12,000, 
and  so  on — the  Avhole  of  the  asessments  upon  candidates  in  an 
average  year  amounting  to  about  $200,000.  The  assessments  upon 
office-holders,  together  with  contributions,  make  $200,000  more,  and 
the  total  expenses  of  election  in  the  city  run  up  to  $700,000;  in  a 
Presidential  year  much  more;  a  single  candidate  has  been  known 
to  spend  $190,000  in  one  election.  Millions  for  fraud  and  not  one 
cent  for  justice. 

Now,  let  us  return  to  Boston,  not  with  vanity  in  our  own  com- 
parative purity,  for  the  West  End  scandal,  the  Bay  State  Gas  vil- 
lainy, the  Fisher  land  fraud,  the  Beverly  Farms  bribery,  &c.,  are 
sufficient  to  remind  us  that  we  need  the  same  medicine  as  our 
sister  cities — not  in  elation  let  us  come  home,   but   in  shame   for 


*  The  facts  of  this  paragraph  and  the  following  one  are  taken  from 
Bryce  on  "The  American  Commonwealth,"  and  from  "Money  In  PolltiCB," 
by  Profesor  J.  "W.  Jenks,  of  Cornell,  in  the  Century,  Oct.,  1892,  p.  940. 


THE   EXPERIENCE   OF   EXGLAND.  497 

our  country,  and  in  st«m  determination  to  do  all  in  our  power  o 
purify  the  public  life  of  which  we  form  a  part.  How  can  it  be 
done? 

There  are  two  ways  of  overcoming  an  evil.  We  may  take  away 
the  inner  causes,  or  remove  the  external  conditions.  We  may  make 
a  man  sober  by  removing  the  appetite  for  liquor,  or  the  weakness 
that  leads  him  to  yield  to  that  appetite,  or  by  making  it  impos- 
sible for  him  to  get  liquor.  The  internal  causes  of  corruption  are 
ignorance,  partisanship,  selfishness  and  apathy.  It  is  our  duty 
to  do  all  we  can  to  banish  these  primal  authors  of  iniquity.  But 
it  is  a  long  task  of  education  and  development  to  do  this  com- 
pletely, and  meanwhile  a  part  of  the  work  of  overcoming  political 
corruption  may  be  directly  accomplished,  at  the  same  time  aiding 
the  educational  and  character  building  processes  by  changing  the 
external  conditions,  which  fall  into  two  classes,  first,  the  conditions 
which  create  or  intensify  the  motives  to  corruption,  viz.,  the  poverty 
of  the  people,  the  power  of  wealth  and  corporate  influence,  the 
chances  of  large  gains  by  disreputable  methods,  &c.,  and  second, 
the  conditions  which  afford  opportunities  for  corruption,  viz.,  the  sep- 
aration of  legislation  from  the  people,  the  system  of  arbitrary  ap- 
pointments and  removals,  the  contract  system,  the  imperfection 
of  our  election  machinery,  &c.  It  is  needful,  therefore,  that  we 
should  aim  to  educate  and  inform  the  people,  develop  their  patriot- 
ism and  public  spirit,  and  rouse  them  to  action;  that  we  should 
seek  to  raise  the  standard  of  living,  close  the  doors  to  degraded  im- 
migration,take  public  charge  of  the  great  monopolies,  adopt  a  better 
system  of  taxation  and  finance,  and  in  everj-  possible  way  endeavor 
to  aid  the  diffusion  of  wealth,  in  order  that  the  power  of  purchase 
and  the  temptation  to  be  bought  may  be  diminished;  that  we 
should  establish  direct  legislation,  proportional  representation  and 
woman  suffrage  to  close  the  door  against  legislative  fraud  and 
oppression,  and  secure  due  influence  in  our  politics  to  the  purest 
and  most  progressive  forces  in  the  community;  that  we  should 
adopt  a  solid  civil  service  reform  to  reduce  political  patronage  and 
spoils  to  the  lowest  possible  terms,  and  take  the  wind  out  of  the 
sails  of  partisanship;  that  we  should  abolish  the  contract  system, 
and  put  the  contractors'  profits  into  higher  wages  for  those  who 
do  the  work,  or  into  the  public  treasury — what  is  the  use  of  employ- 
ing a  board  of  public  works  simply  to  look  after  private  contract- 
ors— let  the  board  be  composed  of  experts,  and  employed  to  look 
after  the  work  directly,  so  as  to  save  the  contractors'  profits;'  that 


1  The  Hon.  Josiah  Quincy,  the  progressive  mayor  of  Boston,  who  has 
established  a  municipal  printing  plant,  free  public  baths  and  free  public 
lectures,  has  said  that  "The  city  should  perform  directly  for  itself  all  the 
work  which  it  is  practicable  to  so  perform  with  reasonable  economy,"  and 
again,  speaking  of  the  repairs  of  buildings  and  other  municipal  services, 
he  says:  "I  think  it  would  have  a  decidedly  beneficial  effect  upon  municipal 
politics  to  place  this  work  upon  a  basis  where  it  would  no  longer  be  com- 
peted for  by  a  large  number  of  contractors."     The  reasons  are  obvious. 

Mayor  Jones,  of  Toledo,  in  his  message  -of  October  24,  1898,  advocates 
complete  abandonment  of  the  contract  system.  The  document  Is  a  remark- 
able one.  It  urges  the  establishment  of  civil  service  reform  In  all  depart- 
ments, municipal  gas  and  electric  light  plants,  free  employment 
32 


498  THE  CITY  FOR  THE  PEOPLE. 

we  separate  local  and  national  elections,  so  that  confusion  of  issues 
may  cease;  enact  better  naturalization  laws  to  protect  the  suf- 
frage; adopt  the  automatic  ballot;  pass  an  efficient  corrupt  practices 
act.  and  organize  good  government  clubs,  that  shall  x>ersuade  good 
men  to  go  to  the  primaries,  make  wise  nominations,  watch  the  polls, 
stop  repeating,  bring  out  a  full  vote,  elect  reliable  officers,  so  far  as 
possible,  sustain  them  while  in  office  and  pursue  to  the  extent  of 
the  law  all  officers  who  disregard  their  duty. 

Some  of  these  measures  have  been  dealt  with  in  this  volume 
and  others  may  be  developed  hereafter.  The  remainder  of  this 
chapiter  will  be  devoted  to  a  brief  description  of  the  movement 
of  Jl.'iglish  political  history  in  the  last  hundred  years.  The  story 
is  condensed  from  the  histories  of  Judson  and  Mackenzie,  chiefly, 
and  it  contains  some  of  the  most  momentous  lessons  for  American 
statesinanshij)  that  are  to  be  found  in  the  history  of  mankind  or 
tlie  literature  of  the  world. 

I — ENGLAND   IN    1789. 

At  the  beginning  of  the  French  Revolution,  England  was  freer 
than  any  other  country  of  the  world.  She  had  her  Magna  C^harta, 
her  House  of  Commons  and  her  Bill  of  Eights;  there  was  no  serf- 
dom and  the  press  was  free.  Still,  England  was  very  far  from 
being  either  democratic  or  well  governed.  The  Crown  and  the 
I'eerage  were  hereditary,  and  even  the  House  of  Commons  was  not 
representative  of  the  people. 

1.  The  suffrage  was  very  limited,  there  being  a  high  property 
qualification. 

2.  The  distribution  of  representatives  w^as  very  faulty;  some 
of  the  districts,  with  a  small  population,  had  large  representation, 
and  some  with  large  population  had  little  representation. 

3.  Bribery  and  office  buying  were  very  prevalent,  w^hich  en- 
abled the  small  class  of  wealthy  landowners  to  control  the  House 
of  Commons,  so  that  England  was  ruled  by  a  landed  aristocracj'. 

In  the  17th  century  Cromwell  tried  to  make  Parliament  more 
truly  representative.  Toward  the  end  of  the  18th  century  Chatham 
and  his  great  son,  William  Pitt,  renewed  the  effort,  but  the  French 
Revnhitinn  drore  airai/  all  ideas  of  reform.  All  political  questions  were 
set  aside,  driven  out  of  mind  by  the  rush  of  the  war  tcith  France. 

II — THE    KEFORM    BII.L.    1332. 

The  war  closed  at  Waterloo  in  1815,  and  after  a  time  attention  re- 
turned to  the  political  questions  that  had  been  under  consideration 
before  the  war.  Matters  had  grown  worse  in  the  interval.  The 
Crown  had  not  reapportioned  the  parliamentary  districts  since 
1660.  On  the  one  hand,  districts,  or  boroughs,  had  been  depopu- 
lated, but  retained  their  ancient  representation  in  the  Commons; 
while  on  the  other  hand,  great  cities,  like  Manchester  and  Leeds, 
had  grown  up  without  any  representation.  In  1831  Birmingham, 
with  100,000  people,  had  no  representation  in  Parliament.  Leeds 
and  Sheffield,  each  with  fifty  thousand;  Paislej^  Stockport  and  a 
number  of  other  cities  with  from   ten  to  twenty  thousand   each. 


agencies,  play  grounds,  public  baths;  kindergartens  as  part  of  the  public 
school  system,  larger  appi'opriations  for  public  parks,  for  street  improve- 
ments and  for  music  in  the  parks,  the  sprinkling  of  the  streets  by  the  city 
itself  and  the  getting  out  of  the  directory  by  the  city  itself,  deprecates  any 
grant  or  extension  of  franchises  without  approval  of  the  people,  and  advo- 
cates municipal  home  rule  and  the  popular  referendum  on  all  ordinances. 


THE  EXPERIENCE  OF  ENGLAND.  499 

likewise  had  no  representative.  The  ten  southern  counties,  with 
three  and  one  quarter  million  population,  had  235  members,  while 
the  northern  counties,  with  three  and  one-half  million  population,^ 
had  only  6G  members.  Cornwall  had  one  member  to  each  7500  peo- 
ple, while  Lancashire  had  one  member  to  each  100,000.  Even  this, 
was  not  the  worst;  the  owners  of  the  land  in  depopulated  districts 
controlled  their  representatives,  sometimes  the  owner  sold  his  seat 
in  I'arliament.  The  regular  market  price  of  a  borough  returning 
two  members  was  $50,000.  Some  borough  owners  did  not  sell,  but 
used  their  influence.  A  man  who  owned  a  borough  could  usually 
command  a  peerage,  or  an  embassy  for  himself,  a  pension  for  his 
wife  or  an  appointment  for  his  son,  by  placing  one  of  the  seats  at 
the  disposal  of  the  Government. 

Some  boroughs  not  controlled  by  any  one  man  were  the  scenes 
of  gross  briber^-.  The  borough  of  Sudbury  advertised  itself  for 
sale  to  the  highest  bidder.  At  one  time  the  election  contest  in 
Northampton  cost  the  candidates  about  $150,000  each,  and  we 
read  of  as  much  as  a  million  dollars  being  spent  in  a  single  elec- 
tion. It  is  clear  that  Tammany  Hall  was  not  the  original  discov- 
erer of  political  corruption. 

After  the  NaiJoleonic  wars,  bill  after  bill  was  introduced  for  re- 
form, but  the  measures  were  stoutly  opposed  by  the  vested  inter- 
ests that  controlled  the  House.  The  two  or  three  hundred  rich 
men  who  owned  the  majority  of  the  Commons  did  not  propose  to 
give  up  their  property*.  Lord  Wellington,  the  prime  minister,  was 
a  strong  conservative;  he  thought  the  representative  system  just 
as  it  stood  the  masterpice  of  human  wisdom,  and  said,  "If  I  had 
to  make  it  over,  I  would  make  it  just  as  it  is,  with  all  its  repre- 
sented ruins  and  all  its  unrepresented  cities." 

In  1831  the  Reform  Party  (Whig)  was  successful.  A  reform  bill 
was  passed  hy  the  Commons,  but  promptly  rejected  by  the  Lords.  In 
March,  1832,  another  bill  passed  the  Commons;  the  Crown  had  a 
constitutional  right  to  create  new  peers,  and  the  ministry  now  in- 
formed the  Lords  that  the  King  was  readj'  to  create  enough  new 
liberal  Peers  to  swamp  the  Tory  majority,  so  the  Lords  yielded,  and 
the  Eeform  Bill  became  a  law  in  June,  1832.  It  reapportioned  the  rep- 
resentation, extended  the  suffrage  and  transferred  poicer  from  the 
tceaUhy  and  titled  to  the  great  middle  classes.  The  farm  laborers  and 
artisans,  however,  were  still  out  in  the  cold. 

Fiftj'-six  rotten  or  decayed  boroughs,  where  there  were  only  a 
few  inhabitants,  were  deprived  of  143  members  in  the  House,  which 
were  given  to  counties  and  cities  like  Manchester  and  Birmingham. 
The  franchise  in  counties  was  extended  from  freeholders  to  all 
who  leased  or  rented  propertj^  worth  $250  a  year  clear  rent.  The 
borough  franchise  was  put  on  a  uniform  basis,  including  all  house- 
ow^ners  whose  houses  were  worth  fifty  dollars  a  jear. 

Ill — THE    REFORM    PARLIAMENT. 

The  first  Eeform  Parliament,  elected  under  the  Reform  Act,  met 
in  January,  1833.  The  Radicals  wished  to  abolish  slavery,  tithes, 
poor  laws,  closed  corporations,  corn  laws,  game  laws,  &c.,  pass  a 
further  reform  bill  and  establish  the  ballot  and  free  labor  and  mu- 
nicipal self-government. 

What  did  the  Liberal   Parliament  do? 

1.  It  abolished  slavery  thruout  the  British  Empire,  to  take 
effect  August  4,  1834,  the  planters  being  paid  the  value  of  their 
slaves. 

-„'.  Poor  laws  were  remodelled  so  as  .  not  to  encourage  idle- 
ness, or  improvidence  or  depraved  marriage. 

3.  A  factory  act  was  passed  providing  that  children  under 
13  should  not  work  more  than  8  hours  per  day,  and  youths  between 
13  and  18  not  over  69  hours  per  week. 


500  THE  CITY  FOB  THE  PEOPLE. 

rV — THE  COBN  LAWS. 

The  com  laws  of  1815  and  the  following-  years  were  a  sort  of 
prohibitive  tariff,  forbidding  the  importation  of  grain,  whenever 
the  price  of  domestic  grain  fell  below  a  specified  nainimum,  and 
fixing  duties  at  other  times.  The  laws  were  intended  to  protect 
British  agriculture,  but  in  fact  the  laws  worked  ruin  to  the  work- 
ing classes  by  keeping  up  the  price  of  grain.  In  1838  a  com  law 
league  was  established,  with  Richard  Cobden  and  John  Bright  as 
leaders;  they  flooded  England  with  pamphlets  and  speeches  against 
the  corn  laws,  and  they  won.  In  1846  the  corn  laws  were  repealed, 
and  by  1852  protective  duties  were  all  gone.  This  movement,  by 
education  and  the  ballot,  probably  saved  England  from  a  serious 
revolution. 

V — THE  CHABTISTS,   1838-48. 

The  Eeform  Act  of  1832  gave  power  to  the  Middle  Classes.  The 
liaboring  Classes  were  dissatisfied,  of  course,  and  began  to  agitate 
for  a  People's  Charter,  or,  a  more  democratic  constitution,  that 
would  enfranchise  the  masses;  they  wanted  universal  suffrage,  the 
1)allot,  equal  election  districts,  annual  election  of  Parliament,  aboli- 
tion of  property  qualification  for  members,  and  salaries  for  members, 
so  that  poor  men  might  take  part  in  the  House  of  Commons. 

These  purposes  were  *for  the  most  part  good,  but  the  Chartists 
were  violent  in  their  talk  and  methods,  and  this  alarmed  the  peo- 
ple, so  that  their  demands  failed  of  success.  Later,  however,  some 
of  the  demands  were  taken  up  by  the  great  Liberal  Party  and  car- 
ried to  success. 

VI — THE  BEFOBM  BILL   OF   1867. 

The  Reform  Bill  of  186.7  enfranchised  lodgers  in  the  boroughs 
and  greatly  lowered  the  property  qualification  in  the  counties.  It 
was  passed  by  the  Conservatives,  with  Disraeli  at  their  head. 

VU. — JUDICIAL  DECISION  OF  ELECTION  DISPUTES. 

In  1868  it  was  enacted  that  election  disputes  should  thereafter 
be  decided  in  court.  They  are  now  quietly  and  judiciously  decided 
upon  evidence,  instead  of  upon  party  grounds,  as  formerly. 

VIII — GLADSTONE  AND  THE  SECKET  BALLOT. 

In  the  first  Liberal  Parliament  (1833)  one  of  the  Conservative 
members  was  William  E.  Gladstone;  he  did  not  remain  a  Conserva- 
tive; in  1872  he  was  the  Liberal  leader  and  head  of  the  Govern- 
ment, and  he  carried  through  a  "ballot  act"  substantially  like  the 
Australian  system.  Until  this  time  voting  had  been  viva  voce, 
which  made  bribery  and  intimidation  very  easy. 

IX — THE  COBRUPT  PRACTICES  ACT,   1883. 

Money  and  influence  were  still  used  corruptly  to  secure  votes  and 
appointments,  and  the  next  important  measure  was  aimed  directly 
at  these  evils.  In  his  second  ministry,  Gladstone  had  a  strong  law 
passed  against  bribery,  treating,  undue  influence,  personating  &c., 
the  penalties  being  fine  and  imprisonment,  at  hard  labor,  and  dis- 
franchisement for  seven  years;   even  the  taking  of  voters  to  the 


THE   EXPEKIE>'CE   OF   ENGLAND.  501 

polls  in  wagons  was  forbidden.  A  maximum  was  placed  beyond 
which  a  candidate's  expenses  might  not  go,  and  a  public  account 
must  be  rendered  of  every  penny  spent.  A  corrupt  practice,  by 
or  with  the  knowledge  and  assent  of  a  candidate,  will  prevent  him 
from  ever  holding  a  seat  in  the  House  of  Commons.  If  a  political 
agent  commit  a  corrupt  act,  a  candidate  for  whom  he  is  working 
cannot  take  his  seat  if  elected.'  This  is  the  vital  fact  in  the  law — 
a  corrupt  practice  in  behalf  of  a  candidate,  even  though  unknown  to 
him,  defeats  him.  Each  party,  therefore,  watches  the  others  with 
the  utmost  keenness  to  discover  any  violation  of  the  law,  since 
that  is  the  surest  means  of  defeating  the  opposition.  "The  risk 
from  corruption  is  so  great  that  warnings  not  to  violate  the  law 
are  put  forward  most  prominently  by  all  parties,  and  the  dangers 
of  doing  so  are  fully  explained."  ^ 

The  forfeiture  of  elections  and  disqualification  for  office  attached 
to  corrupt  practices  by  this  English  Act  of  1883  have  worked  a 
revolution  for  purity  in  the  politics  of  Great  Britain.^ 

X — THE   SUFFKAGE   BILL,    1884. 

In  that  same  second  administration,  Gladstone  secured  a  law  ad- 
mitting the  agricultural  laborers  to  the  franchise,  adding  almost 
three  million  voters  to  the  list.  The  qualifications  in  the  counties 
and  in  the  boroughs  were  made  the  same,  namely,  every  house- 
holder and  lodger  whose  holding,  or  use  and  occupation  is  worth 
$50  a  year,  may  vote.  This  is  now  the  basis  of  English  suffrage, 
not  universal  suffrage,  but  still  a  very  wide  suffrage.  The  law  of 
1SS4  also  rearranged  the  election  districts  upon  the  American  plan» 
accoi-ding-  to  population.^ 


^  See  "The  British  Corrupt  Practices  Act,"  by  Henry  James,  the  author 
of  the  law.     Forum,  Vol.  15,  p.  129. 

-  Suppression  of  Bribery  in  England,  by  Prof.  J.  W.  Jenks.  Century,  Vol. 
25,  pp.  781  to  789. 

'  We  have  what  are  called  "Corrupt  Practices  Acts"  in  some  of  our  states, 
but  their  vitality  is  small  compared  to  that  of  the  English  act  because  they 
do  not  make  political  success  depend  on  political  honesty  in  elections.  They 
provide  for  fine  and  imprisonment,  but  the  campaign  managers  care  nothing 
for  that  if  they  can  only  win.  They  do  not  even  care  to  enforce  the  law 
against  opponents  who  break  it.  They  may  find  it  convenient  to  break  it 
themselves,  and  at  any  rate  fining  or  imprisoning  opposing  agents  and  man- 
agers cannot  retrieve  the  lost  election.  But  make  bribery  and  corruption  on 
the  part  of  managers  or  authorized  election  workers  a  cause  of  forfeiture  of 
the  offices  sought  to  be  won  by  such  corruption,  and  you  make  success  depend 
on  purity.  Each  side  watches  the  other  to  discover  fraud  or  corruption  and 
is  eager  to  enforce  the  law  because  it  will  knock  out  the  other  side  if  a 
breach  is  shown.  Let  the  decision  rest  with  a  non-partisan  court;  begin  with 
municipal  elections;  decree  forfeiture  against  all  candidates  In  whose  behalf 
it  can  be  shown  that  fraud  or  intimidation  was  used;  if  no  candidate  with 
untainted  ballot  receives  a  sufficient  number  of  votes  to  elect  him  under  the 
rules  of  proportional  representation  and  preferential  voting,  let  the  prior 
incumbent  continue  to  hold  the  office  till  the  next  regular  election  unless  a 
special  election  is  called  for  by  petition  of  20  per  cent,  of  the  voters.  It  is 
somewhat  less  drastic  to  declare  a  forfeiture  in  England  than  in  this  country 
because  the  relations  between  candidates  and  political  agents  are  more  direct 
In  theory  at  least  than  with  us.  But  this  very  fact  will  be  apt  to  give  the- 
law  additional  force  here,  and  the  hardship  upon  individuals  will  not  be  very 
different  since  candidates  in  both  countries  have  to  trust  the  selection  of' 
political  workers  for  the  most  part  to  the  party  leaders. 

*  One  of  Gladstone's  reforms  in  Ireland,  tho  not  directly  In  line  with 
the  govei'umentai  movement  recorded  in  the  text,  is,  nevertheless,  so  impor- 
tant in  itself  and  has  such  a  direct  bearing-  upon  some  of  our  own  problems, 
that  a  few  words  must  be  given  to  it  in  a  note. 

Ireland  has  suffered  greatly  from  the  fa<5t  that  so  many  of  those  who- 
till  the  soil  have  no  ownership  or  interest  in  it,  a  small  class  of  absentee 
landlords  holding  titles  to  a  large  part  of  Ireland,  and  a  mass  of  poverty 


502  THE  CITY  FOK  THE  PEOPLE. 

XI— CIVIL  SERVICE  BEFOKM, 

In  the  early  part  of  the  century  public  offices  in  England  were 
filled  by  patronage  and  partisanship;  the  spoils  system  was  in  full 
play,  and  each  member  of  Parliament  insisted  on  his  share  of  the 
patronage.  Reform,  in  this  instance,  came  from  the  Executive, 
not  by  act  of  Parliament.  A  commission  was  appointed  in  1853 
to  investigate  the  office  holding  and  appointment  system,  and  it 
reported  in  favor  of  appointment  on  competitive  examination.  In 
1855  this  was  tried  with  all  candidates,  and  the  result  was  a  great 
improvement  in  the  quality  of  the  whole  service;  members  of  Par- 
liament were  relieved  from  the  importunities  of  office  seekers.  The 
House  of  Commons  at  first  opposed  the  change,  but  afterward  saw 
its  value  and  approved  it.  In  1870  the  commission  was  given  power 
to  require  a  competitive  examination  in  all  cases.  Offices  are  held 
during  good  behavior,  and  only  forty  or  fifty  heads  of  departments, 
who  are  regarded  as  political  officers,  lose  their  places  in  case  a 
new  party  comes  into  power.  English  joolitics  now  turn  on  meas- 
ures rather  than  men,  and  parties  are  not  made  up  of  groups  of 
men  seeking  to  win  or  hold  office,  but  they  are  made  up  of  groups  of 
men  who  unite  because  they  wish  to  carry  oxit  a  certain  policy  in 
public  affairs. 


Btricken  tenants,  unable  for  the  most  part  to  got  more  than  a  bare  sub- 
sistence, plus  the  rent,  out  of  the  soil,  and  not  always  so  much  as  that. 
Improvements  were  discouraged  by  the  fact  that  if  the  tenant  making  them 
left  his  holding,  or  were  evicted,  he  got  nothing  for  them,  and  heartless 
land  agents  might  evict  a  thrifty  tenant  for  the  very  purpose  of  obtaining 
his  Improvements  without  compensation,  and  then  demanding  a  higher  rent 
of  the  next  tenant  on  account  of  them.  Such  has  been  the  economic  situation 
that  has  constituted  the  basic  cause  of  Ireland's  distress— the  paper  titles 
of  the  descendants  of  a  band  of  conquerors  counted  for  more  in  the  control 
of  the  land  and  the  distribution  of  its  products  than  the  lives  of  the  tenants 
and  producers. 

In  1870  the  Gladstone  government  gave  the  tenant  a  right  to  demand 
pay  for  his  improvements  in  case  of  his  eviction,  and  offered  to  loan  two- 
thirds  of  the  purchase  price  to  any  tenant  who  would  buy  the  land,  the  aim 
being  to  change  Ireland  into  a  state  full  of  homes  instead  of  a  state  full  of 
tenements. 

In  1881  Gladstone  provided:  First,  that  the  tenant  might  sell  his  Interest 
in  the  improvements;  second,  that  the  rent  should  be  fixed  by  court,  and 
third,  that  no  eviction  should  take  place  except  for  just  cause— non-payment 
of  rent,  injury  to  property,  etc.— fi-ee  sale,  fair  rent  and  fixity  of  tenure. 

In  1885  the  Gladstone  government  offered  to  loan  the  whole  purchase  price 
to  tenants  who  would  buy  the  land,  repayment  to  he  at  J,  per  cent,  a  year  for  lf9 
years.  This  has  greatly  increased  purchases,  and  Ireland  is  fast  becoming 
a  land  of  homes,  her  tenant  serfdom  rapidly  disappearing  under  the  en- 
lightened policy  of  the  English  government. 

In  Equity  Series,  No.  1,  we  saw  what  great  benefit  Pennsylvania  de- 
rived from  a  somewhat  similar  policy  in  her  colonial  days.  I  am  satisfied 
that  a  policy  of  this  sort  now  would  tui'u  large  masses  of  our  unemployed 
and  landless  classes  into  thrifty  owners,  especially  if  instructions  were  given 
In  the  best  methods  of  cultivating  the  soil,  either  on  Governor  Pingree's 
plan  or  in  some  other  effective  way. 

Scarcely  anything  is  of  more  importance  than  the  changing  of  the  drifting 
masses  and  the  tenant  classes  in  city  and  country  into  homc-otonrrs,  and 
•until  the  time  is  ripe  for  the  common  ownership  and  co-operative  cultivation 
•of  productive  land  the  fostering  of  small  holdings  bv  producing  owners  is 
hardly  less  important  than  the  development  of  home-owning.  The  strong 
and  successful  means  adopted  by  the  "Grand  Old  Man"  to  accomplish  these 
purposes  in  Ireland  affords  at  once  an  added  lustre  to  bis  name  and  a 
weighty  lesson  to  our  statesmanship. 


THE    EXPERIENCE    OF    ENGLAND.  603 

XII — CONCLUSIONS. 

Thus,  by  a  few  peaceful  measures,  within  the  period  of  an  ordi- 
nary lifetime,  the  government  of  England  has  been  changed  from 
corruption  to  purity,  and  from  aristocratic  despotism  to  a  con- 
dition much  closer  to  democracy.  Historians  tell  us  that  less  than 
a  hundred  years  ago  the  English  elections  were  the  most  corrupt 
that  the  world  has  ever  seen.  Now  there  are  none  purer.  The 
secret  ballot,  the  corrupt  ijractices  act  and  civil  service  reform  have 
made  the  English  government  a  model  of  honesty  and  efficiency. 
It  is  not  jet  perfect  by  any  means,  but  it  has  made  a  jjrogress  un- 
exampled in  the  history  of  the  world,  especially  when  we  con- 
sider that  it  has  been  made  by  peaceful  legislation.  From  an  ex- 
ceedingly limited  suffrage,  a  monstrous  representative  system,  out- 
rageously corrupt  elections  and  unblushing  administrative  abuses, 
England  has  come  to  an  almost  universal  suffrage,  a  much  fairer 
rerpesentation,  astonishingly  pure  elections  and  an  administrative 
system,  the  honesty  and  efPciency  of  which  are  the  admiration  of 
the  world.  We  see  in  British  history  during  the  last  hundred  years, 
as  in  the  history  of  every  great  nation  in  Europe,  the  irresistible 
sweep  of  thought  and  institutions  toward  democracy;  we  see  an 
industrial  revolution  averted  by  a  vigorous  campaign  of  education, 
and  agitation  resulting  in  the  repeal  of  the  corn  laws;  we  see  the 
strong  hold  of  partisanship  destroyed  and  the  spoils  system  ban- 
ished; and  we  see  corruption  in  elections  practically  abolished. 
If  England  has  made  such  progress  in  a  lifetime  from  conditions 
so  ujiprt.mising  as  hers  in  1830,  what  may  not  we  accomplish 
in  the  next  few  years,  starting  from  conditions  on  the  whole  so  far 
superior  to  those  of  England  at  the  beginning  of  her  great  move- 
ment toward  justice  and  equality? 


SHALL  I  WISH  MY  BROTHER  TO  BE  MY  INFERIOR 

IF  I  LOVE  MY  NEIGHBOR 

AS  MYSELF 

WILL  I  NOT  WISH  HIM  TO  BE  AS  WELL  OFF 

AS  I  AM  ?     HOW  THEN  CAN 

PRIVATE  MONOPOLY 

COMPORT  WITH  BROTHERHOOD 

OR  MAKE  ITS  PEACE  WITH  THE  GOLDEN  RULE? 


IT  CAN  NOT 

EVEN  ANSWER  THE  QUESTIONS 

OF  ENLIGHTENED  SELFISHNESS,  FOR  IT  KEEPS 

THE  WORLD  AND  MAN   FROM  THE  FULLER  DEVELOPMENT 

AND  RICHER  LIFE  OF  AN  ALL-UPLIFTING  AGE 

IN  WHICH  CO-PARTNERSHIP  SHALL  BANISH  MASTERSHIP 

AND  MUTUAL  HELP  DISPLACE  DEBASING  CONFLICT, 

AND  SO  DEPRIVES 

EVEN  THE  MONOPOLIST  HIMSELF 

OF  THE  NOBLER  LIFE  HE  MIGHT  ENJOY 

IN  A  CO-OPERATIVE  WORLD. 


PRIVATE  MONOPOLY 
IS  SIMPLY  UNENLIGHTENED  SELFISHNESS. 


504 


Appendix  I. 


LEGISLATIVE  FORMS. 


Forms  of  Constitutional  and  Statute  Provisions  Relating 
to  Direct  Legislation,  Freehold  Charters  and  Public 
Oimiership. 


The  subject  of  Public  Ownership 
V.  Private  Monopoly  is  probably 
better  adapted  to  awaken  the  in- 
terest of  the  averag-e  citizen,  and 
give  him  a  realizing-  sense  of  the 
need  of  better  government  and  bet- 
ter industrial  methods  than  any 
other  subject  within  the  scope  of 
this  book.  There  was  good  reason, 
therefore  for  opening  the  discussion 
of  progressive  measures  with  "Pub- 
lic Ownership."  But  when  the 
discussion  is  over  and  action 
is  in  order,  there  can  be  no 
doubt  that  Direct  Legislation 
should  have  the  first  place; 
it  is  the  Initiative  and  Refer- 
endum that  must  be  relied  upon 
to  make  the  people  really  sover- 
eign; to  clear  away  the  obstruc- 
tions to  progress,  and  jiut  in  mot- 
ion the  machinery  of  the  law  for 
the  vigorous  accomplishment  of 
any  purpose  that  may  be  decided 
upon. 

We  therefore  ask  attention  first 
to 

DIRECT   LEGISLATION   LAWS   AND 
AMENDMENTS.- 

South  Dakota  Amendment. 

I.  The  Constitutional  Amendment 
recently  adopted  (1898)  by  the  peo- 
ple of  South  Dakota  is  as  follows: 

Section  1.  (Amendment.)  That  sec- 
tion one  of  article  tliree  of  the  constitu- 
tion of  the  State  of  South  Daliota  be 
amended  so  as  to  read  as  follows: 

See.  'J.  (Questions  submitted.)  The 
legislative  power  of  the  State  shall  be 
vested  in  a  legislature  which  shall  con- 
sist of  a  senate  and  house  of  represen- 
tatives, except  that  the  people  express- 
ly reserve  to  themselves  the  right  to 
propose  measures,  which  measures  the 
legislature  shall  enact  and  submit  to  a 
vote  of  the  electors  of  the  State,  and 
also  the  right  to  require  that  any  laws 
which  the  legislature  may  have  enacted 
shall    be    submitted    to    a    vote    of    the 


electors  of  the  State  before  going  into 
effect  (except  such  laws  as  may  be  nec- 
essary for  the  immediate  preservation 
of  the  public  peace,  health  or  safety  or 
support  of  the  State  government  and 
its  existing  public  institutions). 

Provided,  That  not  more  than  5  per 
centum  of  the  qualified  electors  of  the 
State  shall  be  required  to  invoke  either 
the  Initiative  or  the  Referendum. 

Thin  section  shall  not  be  construed  so 
as  to  deprive  the  legislature,  or  any 
member  thereof  of  the  right  to  propose 
any  measure.  The  veto  power  of  the  ex- 
ecutive, shall  not  be  exercised  as  to 
measures  referred  to  a  vote  of  the 
people.  This  section  shall  apply  to  mu- 
nicipalities. The  enacting  clause  of  all 
laws  approved  by  vote  of  the  electors 
of  the  State  shall  be,  "Be  it  enacted 
by  the  people  of  South  Dakota."  The 
legislature  shall  make  suitable  provis- 
ions for  carrying  into  effect  the  pro- 
visions of  this  section. 

Sec.  3.  (Submission.)  This  amend- 
ment shall,  if  agreed  to  by  a  majority 
of  the  members  elect  of  each  house  of 
the  legislature,  be  submitted  to  a  vote 
of  the  people  at  the  next  general  elec- 
tion. 

For  text  of  the  law  passed  to  carry 
out  this  amendment,  and  of  laws  pro- 
posed in  Dakota,  and  by  the  National 
Direct  Legislation  League,  see  Direct 
Legislation  Record,  June,  1890  and 
March,  1898,  published  by  Pres,  Eltweed 
I'omeroy,  Newark,  N.  J. 

Comment.  The  5  per  cent,  limit 
is  wise  and  the  application  of  Di- 
rect Legislation  to  municipalities 
also.  The  latter  provision  might 
be  fuller  and  more  definite  with 
advantage.  The  "enact  and  sub- 
mit" clause  is  not  as  good  as  a  pro- 
vision that  if  the  legislature  amends 
or  does  not  jiass  the  measure  petit- 
ioned for,  the  Governor  shall  submit, 
etc.  The  minimum  time  within 
which  laws  shall  go  into  effect 
should  be  stated.  And  it  should  be 
specifically  provided  that  the  Initi- 
ative and  Referendum  may  be  used 
to  amend  the  constitution;  and 
that  -laws  enacted  by  the  people 
shall  not  be  repealed  or  altered 
without  submission  to  them. 


505 


506 


APPENDIX    I. 


Oregon  is  the  second  state  to  have 
a  Direct  Legislation  Amendment 
passed  by  both  houses  of  the  Leg- 
islature. If  approved  by  the  next 
Legislature,  it  will  be  voted  on  by 
the  people  in  1902.  The  movement 
appears  to  be  entirel3'  non-partisan 
in  Oregon. 

The  Oregon  Direct  Lenislation  Amend- 
ment. 

Section  1.  The  legislative  authority 
of  the  State  shall  be  vested  in  a  leg- 
islative assembly,  consisting  of  a  Sen- 
ate and  House  of  Representatives,  but 
the  people  reserve  to  themselves  pow- 
er to  propose  laws  and  amendments  to 
the  constitution,  and  to  enact  or  reject 
the  same  at  the  polls,  independent  of 
the  legislative  assembly,  and  also  re- 
serve power  at  their  own  option  to  ap- 
prove or  reject  at  the  polls  any  act 
of  the  legislative  assembly.  The  first 
power  reserved  by  the  people  is  the  In- 
itiative, and  not  more  than  8  per  cent, 
of  the  legal  voters  shall  be  required 
to  propose  any  measure  by  such  peti- 
tion, and  every  such  petition  shall  in- 
clude the  full  text  of  tlie  measure  so 
proposed.  Initiative  petitions  shall  be 
filed  with  the  Secretary  of  State  not 
less  than  four  months  before  the  elec- 
tion at  which  they  are  to  be  voted  upon. 
The  second  power  is  the  Referendum, 
and  it  may  be  ordered  (except  as  to 
laws  necessary  for  the  immediate  pres- 
ervation of  the  public  peace,  health  or 
safety),  either  by  petition  signed  by  5 
per  cent,  of  the  legal  voters,  or  by-  tlie 
legislative  assembly  as  other  bills  are 
enacted.  Referendum  petitions  shall  be 
filed  with  the  Secretary  of  State  not 
more  thn  90  days  after  the  final  ad- 
journment of  the  session  of  the  legis- 
lative assembly  which  passed  the  bill 
on  whicli  the  Referendum  is  demanded. 
The  veto  power  of  the  governor  shall 
not  extend  to  measures  referred  to  the 
people.  All  elections  on  measures  re- 
ferred to  the  people  of  the  State  shall 
be  held  at  the  biennial  regular  general 
elections,  except  when  the  legislative 
assembly  shall  order  a  special  election. 
Any  measure  referred  to  the  people 
shall  take  effect  and  become  the  law 
when  it  is  approved  by  a  majority  of 
the  votes  cast  thereon  and  not  other- 
wise. The  style  of  all  bills  shall  be, 
"Be  it  enacted  by  the  people  of  the 
State  of  Oregon."  This  section  shall 
not  be  construed  to  deprive  any  mem- 
ber of  the  legislative  assembly  of  the 
right  to  introduce  any  measure.  The 
whole  number  of  votes  cast  for  .lus- 
tice  of  the  Supreme  Court  at  the  reg- 
ular election  last  preceding  the  filing  of 
any  petition  for  the  Initiative  or  for 
the  Referendum  shall  bo  the  basis  on ' 
which  the  number  of  legal  voters  nec- 
essary to  sign  such  j)etition  shall  be 
counted.  Petitions  and  orders  for  the 
Initiative  and  for  the  Referendum  shall 
be  filed  with  the  Secretary  of  State, 
and  in  submitting  the  same  to  the 
people  he  and  all  other  officers  shall 
be  guided  by  the  general  laws  and  the 
act  submitting  this  amendment  until 
legislation  shall  be  specially  provided 
therefor. 


Utah  is  the  third  State  to  pass 
(1899)  a  Direct  Legislation  Amend- 
ment, which  is  to  be  submitted  to 
the  people  at  the  next  general  elec- 
tion. The  amendment  is  not  as 
definite  as  it  should  be;  too  much 
is  left  to  Legislative  provision,  even 
the  number  or  percentage  of  peti- 
tioners is  not  fixed,  and  a  two- 
thirds  A'ote  of  the  Legislature  ex- 
cludes Direct  Legislation  entirely. 
Yet  with  all  its  defects  it  is  much 
better  than  no  Direct  Legislative 
provision,  for  every  Direct  Legisla- 
tion measure,  however  poor,  se- 
cures important  vantage  ground 
for  the  obtaining  of  a  better  Direct 
Legislation  measure. 

The  Utah  Direct  Legislation  Amend- 
ment. 

Be  it  resolved  and  enacted  by  the 
legislature  of  the  Senate  of  Utah,  two- 
thirds  of  ail  the  members  elected  to 
each  House  thereof  concurring  therein: 

Section  1.  That  Section  1  of  Article 
()  of  the  Constitution  of  the  State  of 
Utah,  to  be  amended  to  read  as  fol- 
lows: 

Section  1.  The  legislative  power  of 
the  State  shall  be  vested: 

1.  In  a  Senate  and  House  of  Repre- 
sentatives which  shall  be  designated 
the   Legislature   of   the    State   of    Utah. 

±  In  the  people  of  the  State  of  Utah, 
as   hereinafter   stated. 

The  legal  voters  or  such  fractional 
part  thereof,  of  the  State  of  Utah  as 
mav  be  provided  by  law,  under  such 
conditions  and  in  such  manner  and 
within  such  time  as  may  be  provided  by 
law,  may  initiate  any  desired  legislation 
and  cause  the  same  to  be  submitted 
to  the  vote  of  the  people  for  approval 
or  rejection,  or  may  require  any  law 
passed  by  the  Legislature  (except  those 
laws  passed  by  a  two-thirds  vote  of  the 
members  elected  to  each  house  of  the 
Legislature)  to  be  submitted  to  the  vo- 
ters of  the  State  before  such  law  shall 
take  effect. 

The  legal  voters  or  such  fractional 
part  thereof  as  may  be  provided  by  law, 
of  any  legal  subdivision  of  the  State, 
under  such  conditions  and  in  such  man- 
ner and  within  such  time  as  may  be 
provided  by  law,  may  initiate  any  de- 
sired legislation  and  cause  the  same  to 
be  sul)mitted  to  a  vote  of  the  people  of 
said  legal  subdivision  for  approval  or 
rejection,  or  may  require  any  law  or 
ordinance  passed  by  the  law-making 
bodv  of  said  legal  subdivision  to  be 
submitted  to  the  voters  before  such  law 
or  ordinance  shall  take  effect. 

Sec.  2.  Also,  that  section  22.  of  Ar- 
ticle 6.  of  the  Constitution  of  the  State 
of  Utah  be  amended  to  read  as  follows: 

Sec.  22.  The  enacting  clause  of  every 
law  shall  be  "Be  it  enacted  by  the 
Legislature  of  the  State  of  Utah,"  Ex- 
cept such  law  as  may  be  passed  by 
the  votes  of  the  electors  as  pmvided  in 
subdivision   2,   section  1   of  this  article, 


LEGISLATIVE    FORMS. 


507 


and  such  laws  shall  begin  as  follows: 
"Be  it  enacted  by  the  people  of  the 
State  of  Utah."  Xo  Bill  or  Joint  Kes- 
olutious  shall  be  passed,  except  with 
the  assent  of  the  majority  of  all  the 
members  elected  to  each  house  of  the 
Legislature,  and  after  it  has  been  read 
three  times.  The  vote  ni)on  the  final 
passage  of  all  bills  shalf  be  by  yeas 
and  nays;  and  no  law  shall  be  revised 
or  amended  by  reference  to  its  title 
only;  but  the  act  as  revised,  or  sec- 
tion as  amended,  shall  be  re-enacted 
and  published  at  length. 

Sec.  3.  The  Secretary  of  State  is 
hereby  ordered  to  cause  this  proposition 
to  be  publisht  in  at  least  one  news- 
paper In  every  county  In  the  State 
where  a  newspaper  is  publisht,  for  two 
months  Immediately  preceding  the  gen- 
eral election. 

Sec.  4.  This  proposition  shall  be  sub- 
mitted to  the  electors  of  this  State  at 
the  next  general  election  for  their  ap- 
proval or  rejection.  The  official  Ballots 
used  at  said  election  shall  have  printed 
thereon,  "for  the  amendments,  sections 
1  and  22  of  article  6  of  the  constitu- 
tion." "against  the  amendment,  sections 
1  and  22  of  article  6  of  the  constitu- 
tion," and  such  designation  of  title  as 
may  be  provided  for  by  the  law.  Said 
ballots  shall  be  received  and  said  vote 
shall  be  taken,  counted,  canvassed  and 
returns  thereof  be  made  in  the  same 
manner  and  in  all  respects  as  is  pro- 
vided by  law  in  case  of  election  of 
State  officers. 


In  1897  Nebraska  enacted  a  Di- 
rect Legislation  statute  ajiplying 
to  municipalities  by  local  option. 
It  is  over  long  and  full  of  detail, 
requires  1.5  per  cent.,  which  is  too 
high,  and  gives  the  councils  the 
right  by  a  two-thirds  vote  to  alter 
or  annul  an  act  of  the  people  after 
one  year  from  the  vote  at  the  polls. 

The  Direct  Legislation  sections 
of  the  New  Freehold  Charter  of  San 
Francisco,  are  as  follows: 

The  Direct  Legislation  Sections  of 
San  Franciscfii's  Charter- 

Section  20.  AVhenever  there  shall  be 
presented  to  the  Board  of  Election  Com- 
missioners a  petition  or  petitions  signed 
by  fifteen  per  cent,  of  the  legal  voters  at 
the  last  preceding  general  election  of 
the  city  and  county,  equal  in  number  to 
fifteen  per  cent,  of  the  votes  cast  at 
the  last  preceding  general  election,  ask- 
ing that  an  ordinance  to  be  set  forth 
in  such  petition,  be  submitted  to  a  vote 
of  the  qualified  voters  of  the  said  city 
and  county,  it  shall  be  the  duty  of  the 
Board  of  Election  Commissioners  to  sub- 
mit such  proposed  ordinance  to  the  vote 
of  the  qualified  electors  of  said  city 
and  county  at  the  next  election. 

The  signatures  to  said  petition  need 
not  all  be  appended  to  one  paper,  but 
each  signer  shall  add  to  his  signature 
his  place  of  residence,  giving  the  street 
and  number.    One  of  the  signers  of  each 


such  paper  shall  make  oath  before  an 
officer  competent  to  administer  oaths 
that  the  statements  therein  made  are 
true,  and  that  each  signature  to  said 
paper  appended  is  the  genuine  signature 
of  the  person  whose  name  purports  to 
be   thereto   subscribed. 

The  ballots  used  in  such  election  shall 
contain  the  words  "For  the  Ordinance" 
(stating  the  nature  of  the  ordinance) 
and  "Against  the  Ordinance"  (stating 
the  nature  of  the  ordinance). 

If  a  majority  of  the  votes  cast  upon 
such  ordinance  shall  be  in  favor  of  the 
adoption  thereof,  the  Board  of  Election 
Commissioners  shall  within  a  reasonable 
time,  not  exceeding  thirty  days,  pro- 
claim such  fact,  and,  upon  the  publi- 
cation of  such  proclamation,  such  or- 
dinance, thus  adopted,  shall  have  the 
same  and  equal  force  and  effect  as  an 
ordinance  adopted  and  ordained  by  the 
Board  of  Supervisors  and  approved  by 
the  Mayor,  and  the  same  shall  not  be 
repealed  by  the  Board  of  Supervisors. 
But  the  Board  of  Supervisors  may  sub- 
mit a  proposition  for  the  repeal  of  such 
ordinance,  or  for  amendments  thereto, 
for  vote  at  the  next  election;  and 
should  such  proposition,  so  submitted, 
receive  a  majority  of  the  votes  cast 
thereon  at  such  election,  such  ordinance 
shall  be  repealed  or  amended  accord- 
ingly. 

Sec.  21.  Upon  petition  of  15  per  cent, 
of  the  legal  voters  of  the  city  and  coun- 
ty of  San  Francisco  to  the  Board  of 
Supervisors,  it  shall  be  the  duty  of  the 
said  board  to  submit  to  the  qualified 
electors  of  said  city  and  county  any 
amendment  or  amendments  to  this  char- 
ter as  set  forth  in  said  petition. 

The  Board  of  Election  Commissioners 
shall  make  necessary  provisions  for 
submittng  such  amendment  or  amend- 
ments to  the  qualified  voters,  as  here- 
in provided,  and  to  canvass  the  vote 
in  the  same  manner  as  herein  provided 
for  the  canvassing  of  other  election  re« 
turns. 


The  Detroit  Charter  Lair. 

In  Michigan  the  Direct  Legisla- 
tion League  did  not  quite  succeed 
in  obtaining  the  passage  of  a  Di- 
rect Legislation  Amendment  by  the 
last  legislature  (1899),  but  they  did 
secure  an  act  by  which  the  people 
of  Detroit  can  amend  their  own 
charter.  The  Common  Council  on 
its  own  initiative  may  submit  a 
charter  amendment  to  a  referen- 
dum of  the  people  or  .5,000  voters 
by  an  initiative  jietition  may  force 
tiie  Council  to  submit  a  charter 
amendment. 

On  the  urging  of  the  Leagtie.  the 
Common  Council  on  August  2d,  by 
a  tmanimous  vote,  agreed  to  sub- 
mit at  the  November  election  the 
following  amendment  to  the  people 
of   Detroit: 

"The  Common  Council  of  the  City  of 
Detroit   shall    not   grant   to   any   person 


508 


APPENDIX    I. 


or  corporation  a  franchise;  nor  extend 
the  life  of  any  existing  franchise  for 
the  use  or  control  of  any  public  utility, 
unless  such  franchise  shall  have  been 
first  submitted  to  a  vote  of  the  people 
of  said  city,  and  until  the  same  shall 
have  been  approved  by  a  majority  of 
the  electors  of  the  municipality  voting 
thereon  at  such  election.  All  grants  in 
contravention  of  this  provision,  and 
which  shall  not  have  been  first  sub- 
mitted to  a  vote  of  the  people  and  ap- 
proved by  a  majority  of  the  electors 
voting  thereupon,  shall  be  null  and 
void.  The  Common  Council  of  said  city 
ma.v  in  its  discretion  submit  to  the 
electors  of  said  municipality,  either  at 
a  general  or  a  special  election  called 
for  that  purpose,  any  proposition  em- 
bodying the  granting  of  rights,  privi- 
leges or  fninchises  for  the  use  or  con- 
trol of  public  utilities  in  the  City  of 
Detroit. 

"Provided,  that  any  one  and  all  prop- 
ositions which  are  to  be  submitted  to 
a  referendum  vote  shall  be  publisht, 
by  title  and  in  full  at  least  once  a  week 
for  eight  successive  weeks  immediately 
preceding  said  election,  in  at  least  four 
newspapers  publisht  in  the  City  of  De- 
troit, and  at  least  six  half-sheet  poster 
notices  displayed  conspicuously  in  each 
precinct  of  the  city;  and  the  Common 
Council  may  require  that  any  or  all  ex- 
penses thereby  entailed  shall  be  paid 
by  the  party  or  parties  applying  for 
franchise.    And  be  it  further 

"Provided,  That  this  amendment  shall 
not  apply  to  the  granting  of  any  fran- 
chise for  an  extension  not  exceeding 
one  and  one-half  (lya)  miles  in  length 
on  any  street  where  a  street  railway 
franchise  exists,  for  a  term  equal  to 
the  unexpired  term  of  the  franchise  on 
the  line  so  extended." 

In  Pennsj'lvania,  1899,  the  Direct 
Leg-islation  Leag-ue  and  prominent 
members  of  the  Municipal  League 
of  Philadelphia  tried  to  secure  the 
passag-e  of  the  following  bill,  sub- 
jecting franchise  grants  to  refer- 
endum petitions.  It  was  reported 
favorably  in  the  House  and  passed 
first  reading,  but  in  the  Senate  it 
died  in  committee. 

Franchise  Direct  Legislation  Bill  Pro- 
posed in  Pennsylvania. 

An  act  providing  that  no  ordinance 
for  the  sale  of  real  estate  or  for  a 
lease  or  contract  covering  more  than 
five  years  or  for  granting  a  franchise 
shall  be  operative  in  any  city  until  it 
shall  have  been  approved  by  a"  majoritv 
of  the  voters,  if  such  approval  shall 
be  demanded  within  sixty  days  bv  three 
thousand  voters,  or  by  a  number  equal 
to  live  per  cent,  of  the  total  of  votes 
cast  at  the  last  preceding  election,  and 
providing  for  the  submission  of  such  or- 
dinances to  the  voters  at  general  or 
special  elections. 

Section  1.  Be  it  enacted,  etc.  That 
from  and  after  the  passage  of  this  Act, 
no  ordinance  for  making  or  authorizing 
a  sale  of  real  estate  or  a  lease  or  a  con- 
tract covering  more  than  five  years,  or 


for  granting  a  franchise  to  perform  a 
public  service,  or  make  use  of  public 
property,  shall  be  operative  in  any  city 
of  this  Commonwealth  until  after  sixty 
days  from  the  date  of  its  passage;  and 
If  in  any  such  case  and  during  such  per- 
iod of  sixty  days  three  thousand  of  the 
qualified  voters,  or  a  number  equal  to 
five  per  cent,  of  the  total  number  of 
votes  cast  at  the  last  preceding  elec- 
tion in  such  city  shall  demand  that  the 
ordinance  shall  be  submitted  to  a  Hef- 
erendum,  or  direct  vote  of  all  the  vo- 
ters, such  oridnance  shall  not  be  valid 
or  operative  until  it  shall  have  been 
so  submitted  and  approved  by  a  ma- 
jority of  those  voting  upon  it. 

Sect.  2.  In  every  such  case  the  pa- 
pers containing  the  demand  for  the 
Referendum,  or  direct  vote,  shall  be 
filed  with  the  County  Commissioners 
within  the  time  specified,  and  each  sign- 
er shall  write  his  occupation  and  resi- 
dence after  his  signature,  and  the  gen- 
uineness of  the  signatures  on  each  paper 
must  be  attested  by  the  aflidavit  of  a 
qualified  voter. 

Sect.  3.  Such  submission  of  an  ordi- 
nance shall  be  made  at  the  next  regu- 
lar election  or  at  a  special  election  to 
be  held  within  ninety  days  of  the  fil- 
ing of  the  Referendxun  papers,  as  the 
County  Commissioners   may    determine. 

Sect.  4.  In  every  such  Referendum 
the  County  Commissioners  shall  have 
clearly  printed  upon  the  official  ballots 
the  title  of  the  ordinance,  with  the 
words  "For"  and  "Against"  in  conspicu- 
ous capital  letters,  and  each  of  the 
said  two  words  shall  be  followed  by 
a  square  enclosed  space  for  the  voter's 
mark. 

Sect.  5.  Except  as  herein  otherwise 
provided,  every  such  election  shall  be 
governed  by  the  general  laws  of  this 
Commonwealth. 

Sect.  6.  All  laws  and  parts  of  laws 
inconsistent  with  this  Act  are  hereby 
repealed. 


FREEHOLD    CHARTEK    AMEXDMENTi?. 

The  subjoined  constitutional 
amendments  giving  cities  the  right 
to  make  their  own  charters  to  be 
adopted  and  amended  by  popular 
vote,  are  .scarcely  less  important 
than  the  Direct  Legislation  meas- 
ures of  the  last  section.  The  Wash- 
ington amendment  is  commendable 
for  its  brevity  and  its  provision  for 
adopting  and  amending  charters  by 
majontii  vote;  the  requirement  of  a 
four-sevenths  vote  for  adoption  in 
INfinnesota  and  Missouri  (except  St. 
Louis),  and  three-fifths  for  amend- 
ment in  Minnesota.  ]Missouri  and 
California,  is  unnecessarily  burden- 
some. If  a  majority  vote  is  suflfic- 
ient  to  amend  the  constitution  of  a 
State,  it  surely  should  be  sufficient 
to  amend  the  charter  of  a  city.  It 
naay    be    well    to    require    a   three- 


LEGISLATIVE   FOEMS. 


509 


fifths  or  three-fourths  or  four-sev- 
enths vote  for  sudden  action,  or  for 
legislative  action  without  recourse 
to  the  people,  but  to  demand  three- 
fifths  or  more  when  the  people  are 
voting  after  due  notice  and  delib- 
eration, is  simply  to  enable  a  small 
minority  to  govern  the  majority. 
The  provision  in  California  and 
Missouri  (St.  Louis)  against  amend- 
ment except  at  intervals  of  two 
years  is  also  objectionable.  The 
people  of  each  city  should  deter- 
mine for  themselves  ho^v  often  they 
will  allow  their  charter  to  be 
amended.  The  Minnesota  clause 
commanding  the  board  of  freehold- 
ers to  submit  amendments  on  pe- 
tition of  5  per  cent,  of  the  voters 
is  admirable.  By  statute  the  board 
of  freeholders  to  frame  a  charter, 
et-c.,  is  to  be  appointed  by  the  dis- 
trict judge  on  petition  of  8  per 
cent,  of  the  voters  of  the  munici- 
pality. Minnesota  also  leads  in  the 
universality  of  her  amendment,  no 
class  of  cities,  large  or  small,  being 
excluded  from  its  benefits.  If  we 
could  join  in  one  provision  the  good 
points  of  these  various  amend- 
ments, hrerity,  majority  rule,  5  per 
cent,  initiative,  to  set  in  motion  the 
machinery  of  adoption  or  amend- 
ment, universal  application  to  all  mu- 
nicipalities, and  then  add  a  clause 
excluding  legislative  interference  in 
any  way  with  local  self-government 
in  respect  to  specified  local  affairs,  in- 
cluding street  franchises  and  other  lo- 
cal business  matters,  then  we  should 
have  an  amendment  that  w^ould  se- 
cure real  municipal  libertj".  The 
people  of  a  city  could  adopt  direct 
legislation  in  respect  to  ordinances, 
and  popular  sovereignty  in  local 
government  would  be  assured. 

Here  are  the  amendments  so  far 
passed: 


come  organized  under  such  general  laws 
whenever  a  majority  of  the  electors 
voting  at  a  general  election  shall  so 
determine,  and  shall  organize  in  con- 
formity therewith;  and  cities  and  towns 
heretofore  or  hereafter  organized  and 
all  charters  thereof  framed  or  adopted 
by  authority  of  this  constitution  shall 
be  subject  to  and  controlled  by  gen- 
eral laws.  Any  city  containing  a  popu- 
lation of  twenty  thousand  inhabitants 
or  more  shall  be  permitted  to  frame  a 
charter  for  its  own  government  consis- 
tent with  and  subject  to  the  constitu- 
tion and  laws  of  this  state  and  for 
such  purpose  the  legislative  authority 
of  such  city  may  cause  an  election  to 
be  had.  at  which  election  there  shall 
be  chosen  by  the  qualified  electors  of 
said  city  fifteen  freeholders  thereof, 
who  shall  have  been  residents  of  said 
city  for  a  period  of  at  least  two  years 
preceding  their  election,  and  qualified 
electors,  whose  duty  it  shall  be  to  con- 
vene within  ten  days  after  their  elec- 
tion, and  prepare  and  propose  a  char- 
ter for  such  city.  Such  proposed  char- 
ter shall  be  submitted  to  the  qualified 
electors  of  said  city,  and  if  a  majority 
of  such  qualified  electors  voting  thereon 
ratify  the  same,  it  shall  become  the 
charter  of  said  city,  and  shall  become 
the  organic  law  thereof,  and  supersede 
any  existing  charter,  including  amend- 
ments thereto,  and  all  special  laws  in- 
consistent with  such  charter.  Said  pro- 
posed charter  shall  be  published  in  two 
daily  newspapers  published  in  said  city 
for  at  least  thirty  days  prior  to  the 
day  of  submitting  the  same  to  the  elec- 
tors for  their  approval,  as  above  pro- 
vided. All  elections  in  this  section  au- 
thorized shall  only  be  had  upon  notice, 
which  notice  shall  specify  the  object  of 
calling  such  election,  and  shall  be  giv- 
en for  at  least  ten  days  before  the  day 
of  election  in  all  election  districts  of 
said  city.  Such  elections  may  be  gen- 
eral or  special  elections,  and,  except  as 
herein  provided,  shall  be  goverened  by 
the  law  regulating  and  controlling  gen- 
eral or  special  elections  in  said  city. 
Such  charter  may  be  amended  by  pro- 
posals therefor  submitted  by  the.  legis- 
lative authority  of  such  city  to  the  elec- 
tors thereof  at  any  general  election,  af- 
ter notice  of  said  submission  published 
as  above  specified,  and  ratified  by  a  ma- 
jority of  the  qualified  electors  voting 
thereon.  In  submitting  any  such  char- 
ter or  amendment  thereto,  any  altern- 
ate article  or  proposition  may  be  pre- 
sented for  the  choice  of  the  voters,  and 
may  be  A^oted  on  separately  without 
prejudice  to  others. 


The  Washington  Charter  Amendment. 

The  Washington  Constitution, 
1889,  Article  XI,  Section  10,  pro- 
vides as  follows: 

Corporations  for  municipal  purposes 
shall  not  be  created  by  special  laws, 
but  the  legislature,  by  general  laws, 
shall  provide  for  the  incorporation,  or- 
ganization, and  classification,  in  propor- 
tion to  population,  of  cities  and  towns, 
which  laws  may  be  altered,  amended, 
or  repealed.  Cities  and  towns  hereto- 
fore organized  or  incorporated  may  be- 


The  Minnesota  Charter  Amendment. 

In  Minnesota  a  freehold  charter 
amendment  was  adopted  in  1896. 
In  1897  an  amendment  to  the 
amendment  was  proposed  by  act  of 
the  legislature  and  it  was  adopted 
by.  a  vote  of  more  than  2  to  1  in 
1898.  The  amendment  in  its  final 
form  reads  as  follows,  and  is  part 
of  Art.  4,  of  the  State  Constitution: 


510 


APPENDIX   I. 


City   or    Village   may   Frame   its   own 
Charter. 

Section  36.  Any  city  or  village  in 
this  state  may  frame  a  cliarter  for  its 
own  government  as  a  city  consistent 
with  and  subject  to  the  laws  of  'this 
state,  as  follows:  The  legislature  shall 
provide,  under  such  restrictions  as  it 
deems  proper,  for  a  board  of  fifteen 
freeholders,  who  shall  be  and  for  the 
past  five  years  shall  have  been  quali- 
fied voters  thereof,  to  be  appointed  by 
the  district  judge  of  the  judicial  dis- 
trict in  which  the  city  or  village  is 
situated,  as  the  legislature  may  deter- 
mine, for  a  term  in  no  event  to  exceed 
six  years,  which  board  shall,  within  six 
months  after  Its  appointment,  return  to 
the  chief  magistrate  of  said  city  or 
village  a  draft  of  said  charter,  signed 
by  the  members  of  said  board,  or  a 
majority   thereof. 

Charter  to   be  submitted  to   Voters. 

Such  charter  shall  be  submitted  to 
the  qualified  voters  of  such  city  or  vil- 
lage at  the  next  election  thereafter,  and 
if  four-sevenths  of  the  qualified  voters 
voting  at  such  election  shall  ratify  the 
same,  it  shall,  at  the  end  of  30  days 
thereafter,  become  the  charter  of  such 
city  or  village  as  a  city,  and  super- 
sede any  existing  charter  and  amend- 
ments thei-eof:  Provided,  That  in  cities 
having  patrol  limits  now  established, 
such  charter  shall  require  a  %  majority 
vote  of  the  qualified  voters  voting  at 
such  election  to  change  the  patrol  limits 
now  established. 

Legislature  to  Prescribe  General  Limits  of 
Charter. 
Before  any  city  shall  incorporate  un- 
der this  act  the  legislature  shall  pre- 
scribe by  law  the  general  limits  within 
which  such  charter  shall  be  framed. 
Duplicate  certificates  shall  be  made  set- 
ting forth  the  charter  proposed  and  its 
ratification,  which  shall  be  signed  by 
the  chief  magistrate  of  said  city  or  vil- 
lage and  authenticated  by  its  corporate 
seal.  One  of  said  certificates  shall  be 
deposited  in  the  olBce  of  Secretary  of 
state,  and  the  other,  after  being  re- 
corded in  the  office  of  the  register  of 
deeds  for  the  county  in  which  such  city 
or  village  lies,  shall  be  deposltel  among 
the  archives  of  such  city  or  village, 
and  all  courts  shall  take  judicial  notice 
thereof.  Sucli  charter  so  deposited  may 
be  amended  by  proposal  therefor  made 
by  a  board  of  fifteen  commissioners 
aforesaid,  published  for  at  least  thirty 
days  in  three  newspapers  of  general 
circulation  in  such  city  or  village,  and 
accepted  by  three-fifths  of  the  qualified 
voters  of  such  city  or  village  voting  at 
the  next  election  and  not  otherwise; 
but  such  charter  shall  always  be  in  har- 
mony with  and  subject  to  the  consti- 
tution and  laws  of  the  State  of  Min- 
nesota. 

Amendments  to  be  Submitted  upon  .Appli- 
cation of  .5  per  cent,  of  Legal  Voters. 
The  legislature  may  prescribe  the  du- 
ties of  the  commission  relative  to  sub- 
mitting amendments  of  chartoi-  to  the 
vote  of  the  people,  and  sliall  provide 
that  upon  application  of  .">  per  cent,  of 
the  legal  voters  of  any  such  city  or  vil- 


lage, by  written  petition,  such  commla- 
sion  shall  submit  to  the  vote  of  the 
people  proposed  amendments  to  such 
charter  set  forth  in  said  petition.  The 
board  of  freeholders  above  provided  for 
shall  be  permanent,  and  all  the  vacan- 
cies by  death,  disability  to  perform  du- 
ties, resignation  or  removal  from  the 
corporate  limits,  or  expiratiom  of  term 
of  oftice,  shall  be  filled  by  appointment 
in  the  same  manner  as  the  original 
board  was  created,  and  said  board  shall 
always  contain  its  full  complement  of 
members. 

Mayor  and  Legislative'  Body. 
It  shall  be  a  feature  of  all  such  char- 
ters that  there  shall  be  provided,  among 
other  things,  for  a  mayor  or  chief  mag- 
istrate, and  a  legislative  body  of  either 
one  or  two  houses;  if  of  two  houses, 
at  least  one  of  them  shall  be  elected  by 
general  vote  of  the  electors. 

Articles  of  Amendment  may  be  Submitted 
Separately. 
In  submitting  any  such  charter  or 
amendment  thereto  to  the  qualified  vo- 
ters of  such  city  or  village,  any  altern- 
ate section  or  article  may  be  presented 
for  the  choice  of  the  voters  and  may 
be  voted  on  separately  without  preju- 
dice to  otlier  articles  or  sections  of  the 
charter  or  any  amendments  thereto. 

General  Laws  for  Cities  by  Divisions  of 
Population. 
The  legislature  may  provide  general 
laws  relating  to  affairs  of  cities,  the  ap- 
plication of  which  may  be  limited  to 
cities  of  over  fifty  thousand  inhabitants, 
or  to  cities  of  fifty  and  not  less  than 
twenty  thousand  inhabitants,  or  to 
cities  of  twenty  and  not  less  than  ten 
thousand  inhaljitants,  or  to  cities  of  ten 
thousand  inhabitants  or  less,  which 
shall  apply  equally  to  all  such  cities 
of  either  class,  and  which  shall  be  par- 
amount while  in  force  to  the  provisions 
relating  to  the  same  matter  included  in 
the  local  charter  herein  provided  for. 
But  no  local  charter,  provision  or  ordi- 
nance passed  thereunder  shall  supersede 
any  general  law  of  the  state  defining 
or  punishing  crimes  or  misdemeanors. 

Voted  upon  at  the  general  election 
held  November  8,  1898  and  adopted  by 
a  vote  of  68.754  in  favor  of  said  amend- 
ment to  32,068  against  the  same. 

Proclamation  of  the  vote  issued  by  the 
Governor,  December  29,  1898. 

The   California  Charter  Amendment. 
Section    8,    of   Art.    XI,    of   the 
California  Constitution,  as  amend- 
ed in  1891,  is  as  follows: 

Any  city  containing  a  population  of 
more  than  three  thousand  five  hundred 
inhabitants  may  frame  a  charter  for 
its  own  government,  consistent  with 
and  subject  to  the  Constitution  and  laws 
of  this  State,  by  causing  a  Board  of 
fifteen  freeholders,  who  shall  have  been 
for  at  least  five  years  qualified  electors 
thereof,  to  be  elected  by  the  qualified 
voters  of  said  city  at  any  general  or 
special  election,  whose  duty  it  shall  be, 
within  ninety  days  after  sucli  election, 
to    prepare    and    propose    a    charter   for 


LEGISLATIVE   FORMS. 


511 


such  city,  which  shall  be  signed  in  du- 
plicate, by  the  members  of  such  Board, 
or  a  majority  of  them,  and  returned, 
one  copy  to  the  Mayor  thereof,  or  other 
chief  executive  officer  of  such  city,  and 
the  other  to  the  Recorder  of  the  coun- 
ty. Such  proposed  charter  shall  then  be 
published  in  two  daily  newspapers  of 
general  circulation  in  such  city,  for  at 
least  twenty  days,  and  the  first  publi- 
cation shall  be  made  within  twenty 
days  after  the  completion  of  the  char- 
ter: (Provided,  That  in  cities  containing 
a  population  of  not  more  than  ten  thou- 
sand Inhabitants,  such  proposed  charter 
shall  be  published  in  one  such  daily 
newspaper;)  and  within  not  less  than 
thirty  days  after  such  publication  it 
shall  be  submitted  to  the  qualified  elec- 
tors of  said  city  at  a  general  or  special 
election,  and  if  a  majority  of  such  qual- 
ified electors  voting  thereat  shall  ratify 
the  same,  it  shall  thereafter  be  sub- 
mitted to  the  Legislature  for  its  ap- 
proval or  rejection  as  a  whole,  without 
power  of  alteration  or  amendment. 
Such  approval  may  be  made  by  con- 
current resolution,  and  if  approved  by 
a  majority  vote  of  the  members  elected 
to  each  House,  it  shall  become  the  char- 
ter of  such  city,  or  if  such  city  shall  be 
consolidated  with  a  county,  then  of  such 
city  and  county,  and  shall  become  the 
organic  law  thereof,  and  supersede  any 
existing  charter  and  all  amendments 
thereof,  and  all  laws  inconsistent  with 
such  charter.  A  copy  of  such  charter, 
certified  by  the  Mayor,  or  chief  exec- 
utive oflScer,  and  authenticated  by  the 
seal  of  such  city,  setting  forth  the  sub- 
mission of  such  charter  to  the  electors, 
and  its  ratification  by  them,  shall,  after 
the  approval  of  such  charter  by  the 
Legislature,  be  made,  in  duplicate,  and 
deposited,  one  in  the  office  of  the  Sec- 
retary of  State,  and  the  other,  after 
being  recorded  in  said  Recorder's  oflice, 
shall  be  deposited  in  the  archives  of 
the  city,  and  therafter  all  Courts  shall 
take  judicial  notice  of  said  charter. 
The  charter  so  ratified  may  be  amended 
at  intervals  of  not  less  than  two  years 
by  proposals  therefor,  submitted  by  the 
legislative  authority  of  the  city  to  the 
qualified  electors  thereof,  at  a  general 
or  special  election,  held  at  least  forty 
days  after  the  publication  of  such  pro- 
posals for  twenty  days  in  a  daily  news- 
paper of  general  circulation  in  such 
city,  and  ratified  by  at  least  three-fifths 
of  the  qualified  electors  voting  thereat, 
and  approved  by  the  Legislature,  as 
herein  provided  for  the  approval  of  the 
charter.  In  submitting  any  such  char- 
ter, or  amendments  thereto,  any  altern- 
ative article  or  proposition  may  be  pre- 
sented for  the  choice  of  the  voters,  and 
may  be  voted  on  separately  without 
prejudice  to  others. 

The  Missouri  Charter  Amendment. 

The  Constitution  of  Missouri 
(1875),  Art.  IX.  Sections  16  and  17 
provide  tliat  [new  section] : 

Sec.  16.  Any  city  having  a  population 
of  more  than  one  hundred  thousand  in- 
habitants may  frame  a  charter  for  its 
own  government,  consistent  with  and 
subject  to  the  Constitution  and  laws  of 
this   State,   by  causing  a  board  of  thir- 


teen freeholders,  who  shall  have  been 
at  least  five  years  qualified  voters  there- 
of, to  be  elected  by  the  qualified  voters 
of  such  city  at  any  general  or  special 
election;  which  board  shall,  within  nine- 
ty days  after  such  election,  return  to 
the  chief  magistrate  of  such  city  a  draft 
of  such  charter,  signed  by  the  members 
of  such  board  or  a  majority  of  them. 
Within  thirty  days  thereafter,  such  pro- 
posed charter  shall  be  submitted  to  the 
-i3o  a^BOjidnp  y  "joajaqj  s^uempuooiB 
pnB  Ja:(jisqa  Sni^sixd  Jinv  apesjadns  puB 
qualified  voters"  of  such  city,  at  a  gen- 
eral or  special  election,  and  if  four- 
sevenths  of  such  qualified  voters  vot- 
ing thereat  shall  ratify  the  same.  It 
shall,  at  the  end  of  thirty  days  there- 
after, become  the  charter  of  such  city, 
tlficate  shall  be  made,  setting  forth  the 
charter  proposed  and  its  ratification, 
which  shall  be  signed  by  the  chief  mag- 
istrate of  such  city  and  authenticated 
by  its  corporate  seal.  One  of  such  cer- 
tificates shall  be  deposited  In  the  office 
of  the  Secretary  of  State,  and  the 
other,  after  being  recorded  in  the  oflBce 
of  the  recorder  of  deeds  for  the  coun- 
ty in  which  such  city  lies,  shall  be  de- 
posited among  the  archives  of  such  city, 
and  all  courts  shall  take  judicial  notice 
thereof.  Such  charter,  so  adopted,  may 
be  amended  by  a  proposal  therefor,  made 
by  the  law-making  authorities  of  such 
city,  published  for  at  least  thirty  days 
In  three  newspapers  of  largest  circula- 
tion in  such  city,  one  of  which  shall 
be  a  newspaper  printed  in  the  German 
language,  and  accepted  by  three-fifths 
of  the  qualified  voters  of  such  city, 
voting  at  a  special  or  general  election, 
and  not  otherwise;  but  such  charter 
shall  always  be  in  harmony  with  and 
subject  to  the  Constitution  and  laws  of 
the  State, 
[new  section] 

Sec.  17.  It  shall  be  a  feature  of  all 
such  charters  that  they  shall  provide, 
among  other  things,  for  a  mayor  or 
chief  magistrate,  and  two  houses  of 
legislation,  one  of  which  at  least  shall 
be  elected  by  general  ticket;  and  in 
submitting  any  such  charter  or  amend- 
ment thereto  to  the  qualified  voters  of 
such  city,  any  alternative  section  or 
article  may  be  presented  for  choice  of 
the  voters,  and  may  be  voted  on  sep- 
arately, and  accepted  or  rejected  sep- 
arately, without  prejudice  to  other  ar- 
ticles or  sections  of  the  charter  or  any 
amendment  thereto. 

Special  provision  for  St.  Louis 
was  made  in  sections  20  to  2,3  in- 
clusive, of  the  same  article,  as  fol- 
lows: 

[new  section] 

Sec.  20.  The  City  of  St.  Louis  may 
extend  its  limits  so  as  to  embrace  the 
parks  now  within  its  boundaries,  and 
other  convenient  and  contiguous  terri- 
tory, and  frame  a  charter  for  the  gov- 
ernment of  the  city  thus  enlarged,  upon 
the  following  conditions,  that  Is  to  say; 
The  council  of  the  city  and  county 
court  of  the  county  of  St.  Louis,  shall, 
at  the  request  of  the  mayor  of  the  city 
of  St.  Louis,  meet  in  joint  session  and 
order  an  election,  to  be  held  as  pro- 
vided for  general  elections,  by  the  qual- 


512 


APPENDIX  I. 


Ifled  voters  of  the  city  and  county,  of 
a  board  of  thirteen  freeholders  of  such 
city  or  county,  whose  duty  it  shall  be 
to  propose  a  scheme  for  the  enlargement 
and  definition  of  the  boundaries  of  the 
city,  the  reorganization  of  the  govern- 
ment of  the  county,  the  adjustment  of 
the  relations  between  the  city  thus  en- 
larged and  the  residue  of  St.  Louis 
county,  and  the  government  of  the  city 
thus  enlarged,  by  a  charter  in  harmony 
with  and  subject  to  the  Constitution 
and  laws  of  Missouri,  which  shall, 
among  other  things,  provide  for  a  chief 
executive  and  two  houses  of  legislation, 
one  of  which  shall  be  elected  by  gen- 
eral ticket,  which  scheme  and  charter 
shall  be  signed  in  duplicate  by  said 
board  or  a  majority  of  them,  and  one  of 
them  returned  to  the  mayor  of  the  city 
and  the  other  to  the  presiding  justice 
of  the  county  court  within  ninety  days 
after  the  election  of  such  board.  With- 
in thirty  days  thereafter  the  city  coun- 
cil and  county  court  shall  submit  such 
scheme  to  the  .qualified  voters  of  the 
whole  county,  and  such  charter  to  the 
qualified  voters  of  the  city  so  enlarged, 
at  an  election  to  be  held  not  less  than 
twenty  nor  more  than  thirty  days  after 
the  order  therefor;  and  if  a  majority 
of  such  qualified  voters,  voting  at  such 
election,  shall  ratify  such  scheme  and 
charter,  then  such  scheme  shall  become 
the  organic  law  of  the  county  and  city, 
and  such  charter  the  organic  law  of 
the  city,  and  at  the  end  of  sixty  days 
thereafter  shall  take  the  place  of  and 
supersede  the  charter  of  St.  Louis,,  and 
all  amendments  thereof,  and  all  special 
laws  relating  to  St.  Louis  county  in- 
consistent with  such  scheme,  (a) 
[new  section] 

Sec.  21.  Scheme  and  charter,  how  om- 
thenticated — Judicial  Notice. — A  copy  of 
such  scheme  and  charter,  with  a  cer- 
tificate thereto  appended,  signed  by  the 
mayor  and  authenticated  by  the  seal  of 
the  city,  and  also  signed  by  the  pre- 
siding justice  of  the  county  court  and 
authenticated  by  the  seal  of  the  coun- 
ty, setting  forth  the  submission  of  such 
scheme  and  charter  to  the  qualified  vo- 
ters of  such  county  and  city,  and  its 
ratification  by  them,  shall  be  made  in 
duplicate,  one  of  which  shall  be  depos- 
ited in  the  office  of  the  Secretary  of 
State,  and  the  other,  after  being  re- 
corded in  the  office  of  the  recorder  of 
deeds  of  St.  Louis  county,  shall  be  de- 
posited among  the  archives  of  the  city, 
and  thereafter  all  courts  shall  take  ju- 
dicial notice  thereof,  (b) 
[new  section] 

Sec.  22.  Charter,  how  amended.— The 
charter  so  ratified  may  be  amended  at  in- 
tervals of  not  less  than  two  years,  by 
proposals  therefor,  submitted  by  the 
law-making  authorities  of  the  city  to 
the  qualified  voters  thereof  at  a  gen- 
eral or  special  election,  held  at  least 
sixty  days  after  the  publication  of  such 
proposals,  and  accepted  by  at  least 
three-fifths  of  the  qualified  voters  vot- 
ing thereat,  (c) 
[new  section] 

Sec.  23.  Charter  in  harmony  with  con- 
stitution and  Jaics— various  provisions  un- 
der.—Such  charter  and  amendments 
shall  always  be  in  harmony  with  and 
subject  to  the  Constitution  and  laws  of 
Missouri,  except  only  that  provision  may 


be  made  for  the  graduation  of  the  rate 
of  taxation  for  city  purposes  in  the 
portions  of  the  city  which  are  added 
thereto  by  the  proposed  enlargement  of 
its  boundaries.  In  the  adjustment  of 
the  relations  between  city  and  county, 
the  city  shall  take  upon  Itself  the  en- 
tire park  tax;  and  inconsideration  of 
the  city  becoming  the  proprietor  of  all 
the  county  buildings  and  property  with- 
in Its  enlarged  limits,  it  shall  assume 
the  whole  of  the  existing  county  debt, 
and  thereafter  the  city  and  county  shall 
be  independent  of  each  other.  The  city 
shall  be  exempted  from  all  county  tax- 
ation. The  judges  of  the  county  court 
shall  be  elected  by  the  qualified  voters 
outside  of  the  city.  The  city,  as  en- 
larged, shall  be  entitled  to  the  same 
representation  In  the  General  Assembly, 
collect  the  State  revenue  and  perform 
all  other  functions  in  relation  to  the 
State,  in  the  same  manner,  as  if  it 
were  a  county  as  in  this  Constitution 
defined;  and  the  residue  of  the  county 
shall  remain  a  legal  county  of  the  State 
of  Missouri,  under  the  name  of  the 
county  of  St.  Louis.  Until  the  next  ap- 
portionment for  senators  and  represen- 
tatives in  the  General  Assembly,  the 
city  shall  have  six  senators  and  fifteen 
representatives,  and  the  county  one 
senator  and  two  representatives,  the 
same  being  the  number  of  senators  and 
representatives  to  which  the  county  of 
St.  Louis,  as  now  organized,  is  entitled 
under  sections  eight  and  eleven  of  ar- 
ticle IV  of  this  Constitution,    (d) 

PUBLIC        OWNERSHIP        AMENDMENTS 
AND    STATUTES. 

The  Constitutional  .Amendment 
of  South  Carolina  and  the 
sweeping  laws  of  Indiana,  Wash- 
ington and  Minnesota  deserve  spec- 
ial attention.  Combine  the  good 
points  and  put  a  condensed  far- 
reaching  provision  like  that  of  In- 
diana into  Constitutional  form  with 
reasonable  initiative  and  referend- 
um clauses,  so  that  the  option  of 
taking  action  under  the  provision 
to  build  or  buy,  etc.,  may  rest  with 
the  people,  instead  of  the  councils, 
and  you  will  have  a  measure  of  ad- 
mirable scope  and  effectiveness. 

South  Carolina. 

The  South  Carolina  Constitution, 
Art.  VIII,  provides: 

Street  Railways,  etc. 
Sec.  4.  No  law  shall  be  passed  by 
the  General  Assembly  granting  the 
right  to  construct  and  operate  a  street 
or  other  railway,  telegraph,  telephone  or 
electric  light  plant,  or  to  erect  water 
or  gas  works  for  public  uses  or  to  lay 
mains  for  any  purpose,  without  first 
obtaining  the  consent  of  the  local  au- 
thorities in  control  of  the  streets  or 
public  places  proposed  to  be  occupied 
for  any  such  or  like  purposes. 


LEGISLATIVE    FORMS. 


513 


Water  Works  and  Plants  for  Furnishing 
Lights. 
Sec.  5.  Cities  and  towns  may  acquire, 
by  construction  or  purchase,  and  may 
operate,  water  worlis  systems  and  plants 
for  furnishing  lights,  and  may  furnish 
water  and  lights  to  individuals,  firms 
and  private  corporations  for  reasonable 
compensation:  Pronded,  That  no  such 
construction  or  purchase  shall  be  made 
except  upon  a  majority  vote  of  the 
electors  in  said  cities  or  towns  who  are 
qualified  to  vote  on  the  bonded  indebt- 
edness of  said  cities  or  towns. 

Indiana  Statutes. 
The  Indiana  Statutes  (1896)  give 
exchisive  control  of  streets  to  the 
Common  Councils  (Section  4154) 
and  require  street  railways  to  ob- 
tain consent  of  councils  to  street 
locations. 

Under  "Powers  of  Board  of  Public 
Works  in  cities  of  35,OX>  to  49,000" 
Section  7163,  thirty-fourth  line,  I  find 
this   ItE.MAUKABLE   passage: 

"To  purchase  or  erect,  by  contract  or 
otherwise,  and  operate  water  works,  gas 
works,  electric  light  works,  street  car 
and  other  lines  for  the  conveyance  of 
passengers  and  freight,  natural  gas 
lines,  telegraph  and  telephone  lines,  for 
the  purpose  of  supplying  such  city  and 
the  suburbs  thereof,  or  to  purchase  or 
hold  a  majority  of  the  stock  in  cor- 
porations organized  for  either  of  the 
above  purposes:  Provided,  That  none  of 
the  powers  conferred  by  this  paragraph 
shall  be  exercised  except  pursuant  to 
an  ordinance  specifically  directing  the 
same." 

Washington  Statutes. 
Chapter  112  of  the  Washington 
laws  of  1897  provides  for  municipal 
construction  (or  purchase)  and  op- 
eration of  water,  light,  heat,  rail- 
way' and  power  plants  and  for  the 
issue  of  bonds,  etc.  The  preamble 
and  sections  1  and  2  are  as  follows: 

An  Act  authorizing  cities  and  towns 
to  construct,  condemn  and  purchase, 
purchase  acquire,  add  to,  maintain,  con- 
duct and  operate  water  works,  systems 
of  sewerage,  works  for  lighting,  heat- 
ing, fuel  and  power  purposes,  cable, 
electric  and  other  railways,  with  all 
land  and  property  required  therefor, 
providing  for  payment  therefor. 

Be  it  enacted  hy  the  Legislature  of  the 
State  of  Washington: 

MuiiiripaUty  man  Bui/.  Conduct  and  Oper- 
ate Water  Works.  Light.  Heat  and  Power 
Plants.   Street  Railways,   etc. 
Section  1.    That  any  incorporated  city 
or    town    within    the    state    be    and    is 

and  purchase,  purchase,  acquire,  add  to, 
maintain,  conduct  and  operate  water 
works  within  or  without  its  limits  for 
the  purpose  of  furnishing  such  city  or 
town,  and  the  inhabitants  thereof,  and 
any  other  persons  with  an  ample  sup- 
ply of  water  for  all  uses  and  purposes, 

33 


public  and  privjite.  including  water 
power  or  other  power  derived  therefrom, 
with  full  power  to  regulate  and  control 
the  use,  distribution  and  price  thereof; 
and  to  construct  and  maintain  systems 
of  sewerage,  with  full  jurisdiction  and 
authority  to  manage,  regulate  and  con- 
trol the  same,  within  and  without  the 
limits  of  the  corporation;  and  to  con- 
struct, condemn  and  purchase,  purchase, 
acquire,  add  to,  maintain  and  operate 
works,  plants  and  facilities  for  the  pur- 
pose of  furnishing  such  city  or  town 
and  the  inhabitants  thereof  and  any 
other  persons  with  gas.  electricity  and 
other  means,  power  and  facilities  for 
lighting,  heating,  fuel  and  power  pur- 
poses, public  and  private,  with  full  au- 
thority to  regulate  and  control  the  use, 
distribution  and  price  thereof;  and  to 
construct,  condemn  and  purchase,  pur- 
chase, acquire,  add  to,  maintain  and 
operate  cable,  electric  or  other  railways 
within  the  corporate  limits  of  such  city 
or  town,  for  the  transportation  of 
freight  and  passengers,  with  full  author- 
ity to  regulate  and  control  the  use  and 
operation  thereof,  and  to  fix,  alter,  reg- 
ulate and  control  the  fares  and  rates 
to  be  charged  thereon.  (Chap.  128  of 
the  Acts  of  1899  amends  this  law  by 
adding  power  to  cities  and  towns  to 
authorize  others  to  construct  electric,  gas 
or  heating  plants,  and  to  buy  electrical 
power  from  them  and  regulate  the  use 
and   price  of  it.) 

May  Provide  Therefor  ip  Ordinance  Sui- 
mitted  to  the  Voters. 
Sec.  2.  Whenever  the  city  council  or 
other  corporate  authority  of  any  such 
city  or  town  shall  deem  it  advisable 
that  the  city  or  town  of  which  they  are 
such  officers  shall  exercise  the  authority 
conferred  upon  them  in  relation  to  water 
works,  sewerage,  works  for  lighting, 
heating,  fuel  and  power  purposes,  or 
cable,  electric  or  other  railways,  any 
or  all  thereof,  the  corporation  shall  pro- 
vide therefor  by  ordinance,  which  shall 
specify  and  adopt  the  system  or  plan 
proposed  and  declare  the  estimated  cost 
thereof  as  near  as  may  be,  and  the 
same  shall  be  submitted  for  ratification 
or  rejection  to  the  qualified  voters  of 
said  city  or  town  at  a  special  election, 
of  which  thirty  days  notice  shall  be 
given  in  the  newspaper  doing  the  cit.v 
or  town  printing,  by  publication  in  each 
issue  of  said  paper  during  said  time: 
Provided,  That  if  the  said  city  or  town 
is  to  become  indebted  and  issue  bonds 
or  warrants  for  such  water  works,  sew- 
erage system,  lighting,  heating,  fuel  and 
power  works  or  railways,  the  said  prop- 
osition and  authority  to  become  so  in- 
debted shall  be  adopted  and  assented  to 
by  three-fifths  of  the  qualified  voters  of 
said  city  or  town  voting  at  said  elec- 
tion, except  as  to  the  adoption  or  rejec- 
tion of  the  system  or  plan  of  said  im- 
provements, which  may  be  adopted  by 
a  majority  vote.  When  such  system  or 
plan  has  been  adopted,  and  no  indebted- 
ness is  to  be  incurred  therefor,  the 
corporate  authorities  may  proceed  forth- 
with to  construct  and  acquire  the  im- 
provements or  lands  contemplated,  mak- 
ing payment  therefor  from  any  avail- 
able funds.  When  the  system  or  plan 
has  been  adopted  and  the  creation  of  an 
indebtedness  by   the  Issuance  of  bonda 


514 


APPENDIX    I. 


or  warrants  assented  to  as  aforesaid, 
tlie  said  corporation  shall  be  authorized 
and  empowered  to  construct  and  acquire 
the  improvements  or  lands  contemplat- 
ed, iand  to  create  an  indebtedness  and 
to  Issue  bonds  or  warrants  therefor,  or 
for  combinations  thereof,  as  hereinafter 
provided,  to  wit: 

Minnesota  Statutes  (1894). 

Section    2592.    Works    of    internal    im- 
provement. 

Anj'  number  of  persons  not  less  than 
five,  may  associate  for  incorporation  and 
become  Incorporated  under  and  accord- 
ing to  this  title,  for  the  construction, 
maintenance  and  operation  of  any  work 
or  works  of  internal  improvement  re- 
quiring the  taking  of  private  property, 
or  any  easement  therein,  for  public  use, 
including  railways,  telegraph  lines,  ca- 
nals, slack-water  or  other  navlgati(jn 
upon  any  water  course,  bay  or  lake, 
dams  to  improve  or  create  a  water  sup- 
ply or  power  for  public  use,  and  any 
work  or  works  with  all  requisite  sub- 
ways, pipes  and  other  conduits  for  sup- 
plying the  public  with  water,  gas  light, 
electric  light,  heat  or  power;  and  any 
citizens  of  the  United  States,  not  less 
than  nine  In  number,  owning  any  rail- 
way now  or  hereafter  constructed  for 
public  use  within  this  state  for  trans- 
portation of  persons  or  property,  or  or- 
ganized for  the  purpose  of  maintaining 
and  operating  under  any  lease  or  con- 
tract, a  railroad  constructed  for  like 
public  use  may,  by  making  and  filing 
articles  of  association  under  and  accord- 
ing to  this  title,  acquire  and  enjoy  the 
rights,  powers,  privileges  and  franchises 
hereinafter  granted,  and  may,  by  filing 
In  the  office  of  secretary  of  state  a  res- 
olution of  such  corporation  expressing 
its  intent  to  construct,  maintain  and 
operate  any  branch  line,  become  empow- 
ered to  construct,  maintain  and  operate 
the  same  in  connection  with  its  main 
line,  subject,  however,  to  the  provisions 
of  this  title  and  the  general  laws  of 
this  state,  and  any  corporation  formed 
hereunder  may  construct,  maintain  and 
operate  telegraph  lines  along  or  over  its 
lines  of  railroad,  and  any  corporation 
formed  hereunder  or  under  any  act 
hereby  amended,  may  charge  and  col- 
lect a  reasonable  compensation  for  Its 
service.  But  no  corporation  formed  un- 
der this  title  shall  have  any  right  to 
construct,  maintain  or  operate  upon  or 
within  any  street,  alleys  or  other  high- 
way of  any  city  or  village,  a  railway  of 
any  kind  or  any  subway,  pipe  line  or 
other  conduit  for  supplying  the  puhlic 
with  water,  gas  light,  electric  light, 
heat,  power  or  transportation  or  any 
improvement  of  whatsoever  nature  or 
kind,  without  first  obtaining  a  franchise 
therefor  from  such  city  or  village  ac- 
cording to  the  terms  of  its  charter  and 
without  first  making  just  compensation 
therefor  as  herein  provided:  Provided, 
That  the  state  of  Minnesota  shall  at 
all  times  have  full  power  and  authority 
to  supervise  and  regulate  the  business 
methods  and  management  of  any  cor- 
poration existing  and  operating  hereun- 
der, and  shall  also  have  full  power  and 
authority  at  all  times  to  fix  the  com- 
pensation which  shall  or  mav  be  charged 
or  received  by  any  corporation  existing 

u 


and  operating  hereunder.  And  any  cor- 
poration organized  under  this  act  shall 
be  subject  to  any  condition  from  time 
to  time  imposed  by  such  village  or 
city  thru  Its  board  of  trustees  or  city 
council:  And  provided  further.  That  the 
Common  Couneil  of  any  city  and  the 
board  of  trustees  of  any  village  at  the 
end  of  each  and  every  five  years  from 
and  after  the  granting  of  any  franchise 
for  the  construction  of  any  street  rail- 
way, telephone,  water  works,  gas  and 
electric  light,  heat  or  power  works,  or 
any  or  all  of  them,  shall  have  the  right, 
when  authorized  so  to  do  by  a  two- 
thirds  vote  of  the  electors  of  such  mu- 
nicipality as  hereinafter  provided,  to  ac- 
quire the  same  by  purchase  and  there- 
after operate  the  same,  upon  paying  to 
the  company,  corporation  or  person  own- 
ing the  franchise  the  full  and  true  cost 
and  value  thereof,  to  be  determined  by 
the  usual  proceedings  for  acquiring  pub- 
lic property  for  public  use  under  the 
right  of  eminent  domain  upon  petition 
of  the  authorities  of  such  municipality. 
Except  that  none  of  the  commissioners 
so  appointed  to  appraise  the  same  shall 
be  residents  of  said  municipality,  and 
except  further,  that  all  the  property, 
if  any  thereof,  owned  by  the  corpora- 
tion In  interest,  under  and  in  connec- 
tion with  said  franchise  shall  be  in- 
cluded In  such  proceeding  and  purchased 
and  acquired  hereunder.  Before  any 
such  property  shall  be  acquired  by  any 
municipality  or  such  proceedings  be  In- 
stituted, the  proposition  to  acquire  the 
same  shall  be  submitted  to  a  vote  of 
the  electors  of  the  said  municipality,  at 
a  special  election  called  for  that  pur- 
pose within  the  three  months  immedi- 
ately prior  to  the  expiration  of  any  five 
years  of  said  franchise  and  then  only 
when  authorized  by  two-thirds  of  the 
votes  cast  at  said  election.  The  con- 
sideration paid  for  any  such  works  or 
property  acquired  imder  this  provision 
shall  be  first  applied  to  the  payment 
of  any  bonds  upon  the  property  or 
works  acquired  and  the  balance,  if  any, 
to  the  person,  company  or  corporation 
owning  said  franchise. 

Kansas  Statutes. 

The  Kansas  laws  of  1897,  chap. 
82,  after  providing-  that  water,  gas 
and  other  corporations  may  oper- 
ate under  regulations  laid  down  in 
the  act  and  such  others  as  the  mu- 
nicipalities may  prescribe,  and  en- 
acting- that  as  a  condition  prece- 
dent to  procure  a  renewal  or  orig-- 
nal  grant,  lease  or  contract  from 
any  city  of  the  first,  second  or 
third  class,  to  furnish  light,  power, 
water  or  heat,  the  companies  must 
furnish  an  itemized  account  of  all 
materials  used  in  constructing 
their  plants  and  the  value  of  them, 
proceeds  as  follows: 

City  Authorized   to   Provide   Plants. 

Section  8.  That  all  cities  of  the  first, 
second  and   third  class  of  the   state  of 


LEGISLATIVE    FORMS. 


515 


Kansas  are  hereby  granted  full  power 
and  authority  on  behalf  of  such  cities 
to  purchase,  procure,  provide  and  con- 
tract for  the  construction  of,  and  to 
construct  and  operate  gas  plants,  elec- 
tric light  plants,  electric  power  or  heat- 
ing plants,  and  water  works,  and  to 
secure,  by  lease  or  purchase,  natural 
gas  or  other  lands,  for  the  purpose  of 
supplying  such  cities  and  the  citizens 
thereof  with  water,  light,  gas,  power 
or  heat  for  domestic  use  and  all  other 
purposes:  Provided,  That  nothing  in  this 
act  shall  prevent  any  such  city  from 
constructing  any  such  plant  at  any  time 
after  the  act  takes  effect. 

Sec.  9.  That  for  any  and  all  Indebted- 
ness created  for  any  of  the  purposes 
mentioned  in  section  eight  of  this  act, 
any  city  of  the  flr.st,  second  or  third 
class,  is  hereby  granted  full  power  and 
authority  to  issue  the  bonds  of  the  city 
to  an  amount  equal  to  said  indebted- 
ness; the  said  power  to  create  such  in- 
debtedness and  to  issue  bonds  being  in- 
dependent of  and  in  addition  to  like  and 
other  powers  heretofore  granted  such 
cities;  but  such  bonds  shall  not  be  Is- 
sued in  amount  to  exceed  twenty  per 
cent,  of  the  assessed  value  of  such  city 
as  shown  by  the  last  preceding  assess- 
ment. Said  bonds  shall  not  be  issued 
in  denominations  of  less  than  ten  dol- 
lars, nor  more  than  two  hundred  dollars, 
and  shall  run  for  a  period  of  not  to 
exceed  twenty  years,  and  shall  bear  in- 
terest at  a  rate  not  to  exceed  6  per 
cent,  per  annum,  and  may  be  used  in 
payment  in  the  purchase  or  construction 
of  the  plant  or  plants  to  such  persons 
as  will  receive  them  and  to  whom  such 
city  may  become  Indebted  in  the  con- 
struction or  purchase  of  any  such  plant 
or  plants,  at  not  less  than  their  face 
value,  and  as  directed  by  the  mayor  and 
council  of  said  cit.v;  and  said  bonds 
shall  be  receivable  in  the  payment  of 
city  taxes  in  an  amount  not  to  exceed 
ten  per  cent,  of  said  taxes  in  any  one 
year. 

To  Vote  on  Issue  of  Bonds. 

Sec.  10.  On  presentation  of  a  petition 
signed  by  two-flfths  of  the  resident  tax- 
payers of  any  such  city  as  shown  by  the 
last  assessment  roll,  the  acting  mayor 
of  such  city  shall  issue  a  proclamation 
for  a  city  election  to  be  held,  giving  at 
least  thirty  days  notice  thereof  in  a 
newspaper  published  and  of  general  cir- 
culation in  said  city,  for  the  purpose  of 
submitting  to  the  electors  of  such  city 
a  proposition  to  issue  bonds  of  such  city 
for  any  and  all  purposes  mentioned  In 
the  last  two  preceding  sections,  and  sec- 
tion twelve  of  this  act. 

Sec.  11.  If,  upon  a  canvass  of  the  re- 
turns of  said  election,  it  shall  appear 
that  a  majority  of  the  electors  voting 
at  such  election  are  In  favor  of  Issuing 
said  bonds,  the  corporate  authority  of 
the  city  shall  issue  the  same  for  the 
purpose  and  In  the  manner  and  to  the 
amount  specified  in  this  act. 

Limit  of  Grant. 

Sec.  12.  No  renewal  or  original  grant, 
lease  or  contract  provided  for  in  this 
act  shall  continue  for  a  longer  period 
than  twenty  years,  and  auy  such  grant, 
lease  or  contract  may  be  terminated  at 
any    time    after    the    expiration    of    ten 


years  from  the  making  of  the  same,  or 
such  less  time  as  may  be  fixed  at  the 
time  of  making  such  grant,  lease  or  con- 
tract, and  the  city  may  acquire  title 
to  any  gas  light,  electric  light,  electric 
power,  water  works  or  heating  plant  of 
any  private  corporation  upon  the  expi- 
ration of  any  existing  grant,  lease  or 
contract  now  in  force  with  any  such 
corporation,  or  upon  the  termination  of 
any  future  grant,  lease  or  contract  made 
in  accordance  with  this  act;  and  all 
the  rights,  privileges  and  property 
thereto  pertaining,  in  the  following 
manner,  to  wit:  The  city  may,  upon  the 
termination  of  any  grant,  lease  or  eon- 
tract  now  in  force  with  any  such  cor- 
poration, or  at  any  time  after  the  ex- 
piration of  ten  years  from  the  making 
of  such  grant,  lease  or  contract  under 
this  act,  or  after  the  expiration  of  such 
less  time  as  may  be  stipulated  in  the 
grant,  lease  or  contract,  file  a  petition 
in  the  district  court  of  the  county  in 
which  said  city  is  situated,  against  the 
owner  or  owners  of  any  such  plant  and 
others  interested  therein,  which  petition 
shall  contain  a  general  description  of 
the  plant  or  property,  setting  forth  the 
interests  or  property  rights  of  said  cor- 
poration or  others  therein,  as  near  as 
may  be  done,  and  praying  that  the  city 
may  be  permitted  to  acquire  a  title 
thereto  in  .the  manner  provided  in  this 
act.  Thirty  days  notice  shall  be  given 
to  all  persons  Interested  in  said  prop- 
erty at  the  time  for  the  hearing  of  the 
said  application,  by  publication  in  three 
successive  issues  of  some  weekly  news- 
paper printed  in  such  city,  having  gen- 
eral circulation  therein,  the  first  of 
which  shall  not  be  less  than  thirty  days 
prior  to  the  time  of  the  hearing,  and 
also  by  delivering  a  copy  of  such  notice 
to  the  manager  of  sucli  plant,  if  such 
manager  can  be  found  within  the  count- 
ty.  In  such  proceedings,  petition  and 
notices,  it  shall  not  be  necessary  to 
state  the  names  of  any  of  the  parties 
interested  as  defendants,  except  those 
of  the  reputed  owner  or  owners. 

Appoint   Commissioners. 

At  the  time  set  for  the  hearing  of 
such  petition,  the  court  shall  appoint 
three  disinterested  commissioners,  non- 
residents of  the  city,  one  of  whom  shall 
be  named  by  the  court  and  the  other 
two  by  the  county  commissioners  of 
said  county.  The  commissioners  so  ap- 
pointed, after  having  taken  and  sub- 
scribed an  oath  to  faithfully  and  Im- 
partially discharge  their  duties  as  such 
commissioners,  shall  forthwith  proceed 
to  determine  the  then  present  value  of 
such  plant,  exclusive  of  the  city's  fran- 
chise or  property  element  therein, 
which  value  shall  be  a  fair  value  there- 
of. The  commissioners  so  appointed 
shall  have  power  to  administer  oaths, 
to  subpoena  and  compel  the  attendance 
of  witnesses,  and  the  production  of 
books  and  papers,  and  any  citizen  tax- 
paver  or  officer  of  the  city  may  appear 
before  them  and  be  heard  as  to  the 
city's  Interest.  Within  thirty  days  after 
their  appointment,  unless,  for  good 
cause  shown,  the  time  be  extended  by 
the  court  or  the  judge  thereof,  the  com- 
luissioners  shall  file  their  report  with 
the  clerk  of  said  district  court.  Ii  any 
commissioner  so  appointed  shall  fall  to 


516 


APPENDIX   I. 


act,  or  his  place  become  vaeaiit  for  auy 
other  reasou,  the  court  shall  till  such 
vacancy.  The  action  of  a  majority  of 
such  commissioners  shall  be  deemed  to 
be  the  action  of  the  commissioners. 
Within  ten  days  after  the  filing  of  such 
report,  any  citizen  of  such  city  or  other 
person  interested  may  file  exceptions 
thereto,  and  thereupon  the  court  or  the 
Judge  thereof  shall  appoint  a  time  not 
more  thdn  thirty  days  from  the  filing 
of  such  report,  for  the  hearing  of  such 
exceptions,  which  exceptions  shall  be 
heard  in  a  summary  manner  without 
pleading,  and  upon  such  hearing  the 
court  may  confirm  the  said  I'eport  or 
may  set  the  same  aside  as  shall  be 
just,  and  appoint  new  commissioners. 
In  the  event  such  report  shall  be  set 
aside,  further  proceedings  shall  be  had 
In  all  respects  as  in  the  case  of  the 
original  appointment  of  commissioners, 
until  the  award  of  the  commissioners 
shall  be  confirmed  by  the  court.  No  ap- 
peal shall  lie  from  the  action  of  the 
court  upon  the  hearing  of  exceptions  to 
any  award  of  the  commissioners.  Said 
commissioners  shall  be  allowed  three 
dollars  per  day  for  services  rendered, 
to  be  paid  out  of  the  city  treasury.  At 
any  time  within  four  months  after  the 
confirmation  of  such  award  by  the  dis- 
trict court,  the  city  may  deposit  the 
amount  of  the  award  with  the  treasurer 
of  the  county  for  the  use  of  the  owners 
or  others  interested  in  such  plant;  and 
if,  for  anj'  cause,  such  commissioners 
so  appointed  shall  fail  or  refuse  to  make 
and  file  their  report  within  the  time 
limited  therefor,  the  court,  by  attach- 
ment, may  compel  such  filing,  or  may 
discharge  such  commissioners  and  ap- 
point new  ones  from  time  to  time  un- 
til commissioners  shall  be  appointed, 
two  of  whom  shall  agree  upon  a  report. 
From  the  time  of  making  such  deposit 
with  the  county  treasurer  the  city  shall 
be  absolute  owner  of  any  and  all  priv- 
ileges, property,  and  property  rights  of 
any  such  corporation,  and  all  others  in 
any  way  interested  in  any  such  plant, 
free  and  clear  of  the  claims  of  all  per- 
sons theretofore  interested  therein.  Up- 
on application  of  the  city,  writs  of  as- 
sistance shall  be  granted  by  said  dis- 
trict court,  directing  the  sheriff  of  the 
county  to  put  such  city  into  possession 
of  such  plant.  The  court  shall  deter- 
mine as  to  the  proper  disposition  of  the 
sum  so  awarded,  including  the  rights 
of  incumbrances,  owners,  and  all  others 
Interested  therein,  and  any  such  person 
aggrieved  by  such  determination  may 
review  the  same  by  petition  in  error  in 
the  supreme  or  appellate  court. 

There  are  strong  ideas  in  this 
law,  but  it  is  unnecessarily  wordy, 
it  omits  street  railways,  telephones, 
telegraphs,  etc.,  and  does  not  au- 
thorize cities  to  acquire  plants  by 
purchase  of  a  majority  of  stock, 
which  is  sometimes  the  best  and 
easiest  way  to  do  the  work.  For 
brevity  and  comprehensiveness  the 
Indiana  law  above  cited  is  most 
admirable,  as  are  also  the  italicized 
clauses  in  the  Minnesota  statute. 


^i  clause  covering  all  street  fran- 
chises and  local  public  utilities, 
authorizing  all  municipalities  to 
hnild,  hiiy,  or  grant,  with  the  refer- 
endum and  a  3  per  cent,  initiative, — 
that  is  what  public  ownership 
needs, — such  a  clause  put  into  the 
constitution  of  every  state,  beyond 
the  reach  of  legislative  interfer- 
ence, will  give  tts  in  large  degree, 
public  ownership,  direct  legislation 
and  municipal  home-rule  all  in  one. 

SUGGESTIONS   FOR   AMENDMENTS   AND 
I.AWS. 

Made  after  Reviewing  the  Whole  Body  of 
Legislation  Relating  to  the  Main  Topics 
of  This  Book,  with  the  Hope  of  Improv- 
ing on  Past  Models,  Especially  in  respect 
to  Brevity,  Clearness  and  Comprehensive- 
ness. 

Municipal  Home-Rule. 

1.  Any  city  or  town  may  frame  a 
charter  for  itself.  On  motion  of 
the  local  leg-islative  authorities  or 
petition  of  8  per  cent,  of  the  voters 
to  the  Executive,  15  freeholders 
shall  be  elected  to  draw  up  a  char- 
ter to  be  submitted  to  the  people 
at  the  next  election.  Such  charter 
shall  be  publisht  thoroly  to  the  cit- 
izens at  least  one  month  before 
said  election,  and,  if  adopted  at  the 
polls,  shall  become  the  organic  law 
of  the  municipality  subject  to  the 
constitution  and  laws  of  the  State. 

2.  Such  charter  may  be  amended 
by  referendum  vote  on  the  initia- 
tive of  the  mayor,  or  councils,  or 
a  5  per  cent,  petition  of  the  voters 
to  the  Executive. 

3.  Municipal  serviced,  such  as  pri- 
vate corporations  may  engage  in, 
and  all  affairs  of  a  pui-ely  local 
business  nature,  shall  be  given  over 
to  municipal  sovereignty  free  of  leg- 
islative interference.  In  their  rela- 
tion to  State  interests  municipali- 
ties shall  remain  fully  under  the 
control  of  the  legislature  acting 
thru  general  laws,  or  thru  such 
special  laws  as  may  be  asked  for, 
or  adopted,  by  referendal  vote  in 
the  municipalities  affected. 

Direct  Legislation.  General  Amend- 
ment. 
§1.  On  petition  of  5  per  cent,  of 
the  voters  of  the  State  (measured 
by  the  vote  at  the  last  preceding 
general  election)  proposing  any 
law  or  amendment  to  the  Constitu- 
tion, or  demanding  the  referendum 


LEGISLATIVE    FORMS. 


517 


on  any  law  passed  hy  the  Legis- 
lature, the  Governor  shall  cause 
such  law  or  amendment  to  be  sub- 
mitted to  the  people  at  the  next 
election,  for  adoption  or  rejection 
at  the  polls.  A  law  enacted  by  the 
Legislature  shall  not  go  into  effect 
till  90  days  after  passage  and  pub- 
lication, nor  until  approved  by  the 
people,  if  within  said  90  daj's  a  5 
per  cent,  petition  for  the  referen- 
dum on  it  is  filed  with  the  Gover- 
nor; provided,  that  this  90-day  rule 
shall  not  apply  to  mere  matters  of 
routine  which  are  substantially  the 
same  at  every  session,  and  that 
urgency  measures  necessary  for  the 
immediate  preservation  of  the  pub- 
lic peace,  health  or  safety,  may  be 
passed  by  a  2/3  vote  of  the  Legis- 
lature and  may  take  effect  at  once, 
and  shall  be  valid  and  effective 
during  the  time  necessary  to  sub- 
mit the  matter  to  a  referendum,  if 
one  is  called  for,  and  until  repealed 
or  altered  at  the  polls  or  by  the 
Legislature. 

§2.  These  provisions  shall  apply 
to  cities  and  towns,  reading  Mu- 
nicipality for  "State,"  ordinance  in 
place  of  "law,"  charter  for  "Con- 
stitution," mayor  for  "Governor," 
councils  for  "Legislature,"  30  days 
instead  of  90  days, 

§3.  Subject  to  the  popular  veto  as 
above,  the  Legislature  may  enact 
such  laws  as  may  seem  needful  to 
enforce  these  provisions,  and  estab- 
lish such  penalties  for  forging 
names  on  initiative  and  referendal 
petitions,  or  taking  names  of  non- 
voters  upon  them,  as  may  be  re- 
quired to  protect  the  purity  of 
such  petitions. 

§4.  All  officers  in  charge  of  print- 
ing ballots  or  otherwise  connected 
with  elections,  shall  accord  every 
reasonable  facility  in  their  power 
and  do  every  act  necessary  for  the 
clear,  concise  and  accurate  printing 
of  referendal  questions  upon  the 
ballots,  the  thoro  information  of 
voters  upon  the  questions  to  be  de- 
cided, and  the  thoro  working  out 
of  the  substance  and  spirit  of  this 
amendment. 

[It  would  be  more  In  harmony  with 
common  usage  to  make  the  petitions 
returnable  directly  to  the  city  clerks 
and  the  Secretary  of  State  (or  other 
officers  in  charge  of  printing  ballots) 
Instead  of  sending  them  to  the  Mayor 
or  Governor;  but  we  suggest  that  the 
latter  plan  has  some  advantages  in  re- 


spect to  the  atmosphere  and  dignity  of 
the  petitions  and  the  sentiment  that 
gathers  about  them,  and  in  respect  to 
holding  the  executive  (the  most  care- 
fully selected  officer  in  city  or  State) 
directly  resp'onsible  for  the  due  execu- 
tion of  the  all-important  referendum 
law. 

The  South  Dakota  precedent  of  5  per 
cent,  initiative  and  referendum  petitions 
may  be  found  too  high  In  more  popu- 
lous States.  If  it  so  appears  when  di- 
rect legislation  is  put  in  operation  it 
will  be  easy  to  reduce  the  per  cent,  for 
State  petitions  or  petitions  In  very  large 
cities,  or  adopt  a  fixed  number  as  sug- 
gested on  p.  300  in  analogy  to  the  law 
by  which  10  citizens  of  a  New  England 
town  may  by  petition  have  any  muni- 
cipal matter  they  choose  put  in  the  war- 
rant and  brought  before  the  town  meet- 
ing.] I 

Mu7iicipal  D.  L.    Specific. 

Referendum. 

§1.  Ordinances  and  acts  of  city 
councils  (excepting  matters  of 
routine  and  urgent  measures  for 
public  health  or  safetj')  shall  not 
go  into  effect  for  30  days  after 
passage  and  publication,  and,  if 
within  that  time  5  per  cent,  of  the 
voters  of  the  city  petition  the  ex- 
ecutive for  a  referendum  on  any 
such  act  or  ordinance,  it  shall  not 
go  into  effect  until  approved  by  the 
people  at  the  polls.  Questions 
raised  by  such  petitions  shall  be 
thoroly  publisht  thru  newspapers 
and  posters  or  equivalent  means 
for  at  least  three  weeks  and  shall 
then  be  submitted  at  the  next  reg- 
ular election,  or  at  a  special  elec- 
tion 6  to  15  weeks  after  filing  the 
petition,  provided  15  per  cent,  of 
the  city's  electors  ask  for  such 
special  election  and  deposit  funds 
to  pay  for  it.  The  mayor  or  1/3 
of  either  council  may  order  a  refer- 
endum, and  the  mayor,  with  1/3  of 
councils,  may  order  a  special  elec- 
tion. 

Initiative. 

§2.  Any  desired  ordinance  may 
be  proposed  for  decision  at  the 
polls  by  5  per  cent,  petition  of  the 
city's  voters  filed  wuth  the  execu- 
tive, publication  and  submission 
being  governed  by  the  same  pro- 
visions as  in  §1. 

§3.  All  grants,  extensions  or  re- 
newals of  important  franchises 
(such  as  water,  gas,  electric  light, 
railway,  telegraph  and  telephone 
privileges)  must  be  submitted  to  the 
people. 


518 


APPENDIX   I. 


§4.  A  measure  rejected  by  the 
people  cannot  be  again  proixjsed 
the  same  year  by  less  than  20  per 
cent,  of  the  voters,  nor  substan- 
tially re-enacted  by  councils,  ex- 
cept by  2/3  vote  and  then  mnst  go 
to  the  polls  without  petition;  nor 
shall  a  measure  approved  by  the 
people  be  altered  or  repealed  with- 
out a  referendum:  Provided,  how- 
ever, that  councils  by  2/3  vote  may 
adopt  urgency  measures  for  the  im- 
mediate preservation  of  the  public 
peace,  health  or  safety,  to  be  valid 
during  the  time  necessary  to  sub- 
mit the  matter  to  a  referendum, 
if  one  is  called  for. 

JLocal  Option. 

§  5.  These  provisions  shall  apply 
to  any  city  upon  their  adoption  by 
the  electors,  and  the  executive  may 
and  upon  5  per  cent,  petition  shall 
submit  the  question  of  their  adop- 
tion to  the  voters  at  the  next  elec- 
tion. 

(If  it  is  desired  to  make  the  pro- 
visions absolute  and  not  subject  to 
local  option,  the  fifth  section 
should  be  omitted.) 

Oity  D.  L.  C  7-isp. 

§1.  Either  Council  may,  and  on 
petition  of  voters  of  the  city 
amounting  in  number  to  o  per  cent, 
of  the  votes  cast  at  the  preceding 
city  election,  shall  submit  to  the 
voters  for  decision  at  the  next  city 
election  (or  at  a  special  election  if 
so  ordered  by  council  or  by  15  per 
cent,  petition  of  voters)  any  ques- 
tion which  might  lawfully  come  be- 
fore such  council. 

[A  bill  composed  of  this  section  all 
by  Itself  (except  of  course  the  opening 
and  closing  phrases  common  to  all  bills) 
might  prove  an  excellent  first  step 
where  D.  L.  sentiment  is  not  strong 
enough  In  the  legislature  to  carry  a 
more  extensive  measure.  The  gain  will 
be  greater  however  if  a  bill  can  be 
passed  including  one  or  more  of  the 
following  sections.  It  is  a  good  plan  to 
have  two  or  more  bills  introduced  by 
different  members,  and  get  the  best  law 
the  legislature  is  willing  to  enact.] 

§2.  The  mayor  may,  and  on  pe- 
tition as  aforesaid,  shall  submit 
any  municipal  question  at  the  next 
city  election  (or  at  a  special  elec- 
tion if  he  chooses  or  it  is  ordered 
by  either  council  or  by  15  per  cent, 
petition). 

§3.  Ordinances  or  acts  of  councils 
shall  not  take  effect  for  thirty  days 


after  passage  and  publication,  nor 
until  approved  at  the  polls  if  a  5 
per  cent,  petition  for  referendum 
thereon  be  filed  within  the  thirty 
days:  Provided,  hoicever.  That  this 
30  day  rule  shall  not  apply  to  mat- 
ters of  mere  routine  and  that  coun- 
cils by  a  2/3  vote  may  adopt  urgen- 
cy measures  necessary  for  the  im- 
mediate preservation  of  the  public 
peace,  health  or  safety,  which  may 
go  into  effect  at  once  and  remain 
in  force  till  repealed  or  modified  by 
councils  or  by  referendum. 

§4.  Petitions  may  be  addressed  to 
the  mayor  or  either  council  and  en- 
tered in  the  office  of  the  citj'  clerk, 
who  shall  record  their  nature  and 
date  of  entrance  and  transmit  them 
to  the  authority  addressed.  It 
shall  be  the  duty  of  such  authority 
and  also  the  duty  of  the  city  clerk 
to  see  that  questions  duly  called 
for  are  concisely  and  clearly 
printed  on  the  ballots,  and  all  offi- 
cers connected  with  elections  shall 
afford  every  reasonable  facility  and 
do  every  act  within  their  scope  that 
is  necessary  to  carry  out  the  spirit 
and  purpose  of  this  act. 

[Sections  1  and  2  might  be  combined 
— The  mayor  or   either   council    may,    or 

*  *  *  shall  *  ♦  *  (special  election 
ordered  by  mayor  or  *  *  )  any  ques- 
tion which  may  lawfully  come  before 
(or  be  dealt  with  by)  the  legislative  au- 
thorities of  the  city,  or  that  one  of  them 
ordering  or  petitioned  to  order  th.?  ref- 
erendum.] 

Public  Oicnership. — Broad. 

§1.  On  a  vote  of  the  people  to 
that  effect,  any  city  or  town  may 
build  or  buy,  own  and  operate, 
water,  gas,  electric,  street  railway, 
telegraph  or  telephone  plants  to 
serve  the  municipality  and  its  in- 
habitants; or  may  take  such  works 
by  lease  or  contract,  or  purchase 
and  hold  a  majority  of  the  stock 
controlling  any  such  plant  or 
plants. 

§2.  Cities  and  towns  may  unite 
in  the^  purchase,  construction,  oper- 
ation, etc.,  of  such  plants. 

§3.  The  executive  may  submit 
such  questions  at  any  election,  and 
on  x>«'tition  of  5  per  cent,  of  the 
voters,  or  request  of  councils  in 
case  of  a  city,  mnst  stibmit  them 
at  the  next  election,  first  notifying 
the  citizens  fully  of  the  matters  to 
be  voted  upon  by  thoro  publication 


LEGISLATTVB    FORMS. 


519 


at  least    three    weeks    before  the 
vote. 

§4.  Pubic  works  shall  not  be  sold 
or  leased  except  in  accord  with  a 
referendum  vote. 

[If  it  Is  desired  to  give  cities  and 
towns  the  right  to  force  the  purchase 
of  private  worlis,  the  following  clause 
may  be  incorporated  iu  the  law  or 
amendment,  viz. — Cities  and  towns  shall 
have  the  right  to  purchase  such  icorks  at 
the  cost  of  duplication,  and  may  enforce 
such  right  by  proccrdings  at  law  as  in 
taking  land  for  public  use  by  right  of 
eminent  domain. — In  States  where  fran- 
chises are  revocable,  as  in  Mass.,  there 
Is  no  legal  necessity  of  paying  more 
than  the  cost  of  duplicating  the  phj-sl- 
cal  plant,  and  the  same  rule  holds  in 
any  State  in  respect  to  a  purchase  made 
at   the   end  of  a   franchise  term.] 

Bonds. 

Bonds  may  be  issued  to  secure 
public  works,  provided,  they  shall 
not  exceed  in  amount  the  value,  of 
the  works;  and  bonds  issued  to  se- 
cure revenue  producing  works  shall 
not  be  counted  in  estimating'  the 
indebtedness  of  the  municipality  in 
relation  to  the  debt  limit. 

Gas  and  Electric  Works. — General. 

(With  referendum  clauses  adapt  d  to  states  in 
wbiob  the  town  meeting  system  prevails.) 

§1.  On  a  vote  of  the  people  to  that 
effect,  any  town  or  citj'  may  build 
or  buy,  own  and  operate,  gas,  elec- 
tric or  other  works  to  supply  the 
municipality  and  its  inhabitants 
with  light,  heat  or  power,  or  may 
take  such  works  by  lease  or  con- 
tract, or  may  purchase  and  hold  a 
majority  of  the  stock  controlling 
any  such  local  plant  or  plants  sup- 
plying its  inhabitants. 

§2.  Cities  and  towns  may  unite  in 
the  purchase,  construction  and 
operation  of  such  works. 

§3.  The  mayor  of  a  city  may 
cause  the  question  of  such  purchase 
or  construction,  etc.,  to  be  submitr- 
ted  to  the  voters  of  the  city  at  any 
election,  and  upon  petition  of  5  per 
cent,  of  said  voters,  or  of  either 
council  or  board  of  aldermen,  shall 
cause  such  question  to  be  submit- 
ted at  the  next  election,  first  noti- 
fying the  citizens  fully  of  the  mat- 
ters to  be  voted  upon  hy  thoro  pub- 
lication at  least  three  weeks  before 
the  vote. 

In  a  town  the  matter  ma.y  be  de- 
termined by  putting  the  question 
in  the  warrant  in  the  regular  way 


and  deciding  it  by  vote  at  town 
meeting. 

§4.  The  construction,  mainten- 
ance, and  management  of  such  pub- 
lic works  may  be  placed  in  such 
hands  and  conducted  on  such  plan 
as  may  be  decided  upon  by  town 
meeting,  or,  in  a  city,  by  ordinance 
or  5  per  cent,  initiative  petition  rat- 
ified in  either  case  by  the  voters 
at  the  polls. 

§5.  Hereafter  no  grant  or  exten- 
sion or  renewal  of  any  franchise  or 
street  privilege  for  the  manufac- 
ture or  distribution  of  gas  or  elec- 
tricity for  the  supply  of  light,  heat 
or  power  in  any  municipality,  shall 
be  valid  until  ratified  bj^  the  i)eople. 

§6.  Public  works  shall  not  be  sold 
or  leased  except  upon  and  in  ac- 
cordance with  a  vote  of  the  people 
in  town  meeting  or  at  the  polls. 

[If  thought  best  the  following  form 
ma.v  be  used  for  Sec.  4  instead  of  the 
clause  just  given:  Sec.  4.  The  construc- 
tion, extension,  maintenance  and  man- 
agement of  such  municipal  works,  em- 
ployment of  superintendent,  etc.,  and 
all  matters  of  direction  and  operation 
shall  be  in  charge  of  a  non-partisan 
board  of  three  members  (no  two  mem- 
bers from  the  same  political  party)  ap- 
pointed by  the  mayor  or  selectmen,  one 
member  to  hold  1  year,  another  to  hold 
2  years  and  a  third  to  hold  3  years, 
and  each  year  after  the  first  one  new 
appointment  to  be  made  to  hold  3  years. 

Or,  if  desired  the  board  may  be  elec- 
tive; or  the  works  may  be  put  In  con- 
trol of  a  single  officer  appointed  or  elec- 
ted. On  the  whole,  the  first  form  of 
Sec.  4  according  local  option  and  full 
municipal  liberty  in  this  matter  of 
management,  seems  much  the  prefera- 
ble form.  A  town  or  city  has  as  much 
right  to  determine  the  plan  on  which 
its  own  pai'ticular  business  affairs  shall 
be  managed,  as  an  individual  or  firm 
or  partnership  of  six  or  a  dozen  have 
to  determine  the  plan  on  which  their 
own  particular  business  affairs  shall  be 
managed.] 

Gas  and  Electric  Works. — Special. 

Where  the  law  gives  cities  au- 
thority to  "build  or  buj-,"  the  mat- 
ter is  reduced  to  its  lowest  terms. 
The  building  option  will  generally 
bring  the  companies  to  reasonable 
terms,  and  the  good  sense,  self- 
terest  and  justice  of  the  people  may 
be  relied  upon  to  prevent  ruinous 
competition  with  a  company  hav- 
ing suitable  works  and  willing  to 
sell,  them  at  a  reasonable  price.  If, 
however,  it  is  deemed  desirable  to 
provide  more  specifically  for  the 
purchase  of  private  works  the  fol- 


520 


APPENDIX    I. 


lowing  forms  may  be  found  useful. 
They  are  intended  to  apply  where 
franchises  are  revocable  at  will  as 
in  Mass.,  but  may  easily  be  adapted 
to  purchases  at  the  expiration  of 
franchise  terms,  or  to  the  purchase 
of  works  with  outstanding-  fran- 
chise terms.  They  may  be  incor- 
porated in  the  last  bill  just  after 
section  2  above. 

Sec.  3.  Where  gas  or  electric  works 
established  for  the  purpose  the  munic- 
ipality has  lu  view,  and  reasonably  fit 
tnerefor,  already  exist  and  their  owners 
are  willing  to  sell  as  hereinafter  pro- 
vided, the  purchase  of  sucli  works  lor. 
If  two  or  more  distinct  plants  of  differ- 
ent ownership  exist  for  said  purpose 
in  the  same  municipality,  the  purchase 
of  at  least  one  of  such  plants)  shall  be 
a  condition  of  the  rights  of  municipal 
construction,  operation,  etc.,  set  forth 
in  section  1. 

(a)  In  case  of  a  gas  or  electric  plant 
lying  within  the  limits  of  a  city  oi 
town,  it  may  buy  the  same  at  its  actual 
value. 

(to).  In  case  of  a  plant  lying  partly  in 

one  municipality  and  partly  in  another: 

First,  all  municipalities  concerned 

may   co-operate   and   buy    the   whole 

plant  at  its  actual  value;  or 

Second,  the  municipality  in  which 
the  main  gas  works  or  central  light- 
ing station  of  the  plant  is  situated, 
may  purchase  the  whole  plant  at  the 
said  actual  value  and  may  operate 
the  plant  within  and  without  the 
municipal    limits;    or 

Third,  any  municipality  may  pur- 
chase the  portion  of  such  plant  with- 
in its  own  limits  at  the  actual  value 
of  such  portion,  plus  the  damages 
due  to  the  severance  of  such  portion 
from  the  rest  of  the  plant;  and  as 
between  two  municipalities  each  de- 
siring to  own  a  given  portion  of  such 
a  plant,  this  third  right  shall  be 
paramount  to  the  second  or  to  any 
ownership  acquired  under  the  sec- 
ond. 
^  Sec.    4.    The    said    actual    value    shall 

not  include  any  allowance  for  franchise 
or  for  privileges  in  the  streets,  nor  take 
any  account  of  good  will  or  earn- 
Ings,  past,  present  or  future,  but 
i,5v  2_8hall  be  simply  the  actual  value 
of  the  physical  plant  (or  portion  there- 
of), to  be  found  by  taking  the  cost  ol 
establishing  a  new  plant  (or  portion) 
of  t'Quivalcnt  capacity  and  equally  good 
materials  and  workmanship,  and  sub- 
tracting the  portion  of  this  value  repre- 
senting the  inferiority  of  the  existing 
plant  as  compared  with  a  new  one  of 
equivalent  capacity,  by  reason  of  age, 
wear  and  tear,  progress  of  invention 
and  discovery,  or  other  source  of  de- 
preciation. 

The  estimates  of  cost,  depreciation, 
actual  value  and  damages  for  severance, 
if  any,  shall  relate  to  the  time  of  the 
vote  for  purchase,  the  prices  of  labor, 
materials,  machinery,  etc.,  and  other 
conditions  at  thdt  date  being  used,  in 
making   the   calculations. 

Sec.  5.  Upon  a  vote  for  purchase,  the 
mayor  or  selectmen  shall  forthwith  give 
notice  of  such  vote  to  the  person,  firm 
or  corporation  owning  the  works  to  be 


Uu^ 


bought,  and  such  owners,  if  they  de- 
sire to  sell,  shall,  within  15  days  after 
said  notice,  appoint  some  person  to  act 
as  arbitrator;  within  the  same  time  a 
second  arbitrator  shall  be  appointed  by 
the  mayor  or  selectmen;  and  these  two 
shall  choose  a  third  who  shall  not  be 
an  officer  of  the  municipality,  nor  an 
officer  or  stockholder  of  the  company, 
or  otherwise  interested  in  said  works 
to  be  bought.  Within  60  days  the  arbi- 
trators shall  report  to  the  mayor  or  se- 
lectmen and  to  the  person,  firm  or  com- 
pany owning  the  works,  their  determi- 
nation as  to  the  reasonable  fitness  of 
the  works,  and  the  aforesaid  cost,  de- 
preciation, actual  value,  and  damages 
for  severance,  if  any.  If  no  two  of  the 
arbitrators  agree,  or  arbitration  falls  in 
any  way  after  the  appointment  of  an 
arbitrator  by  the  owner  or  owners  of 
the  works,  or  if  either  party  feels  ag- 
grieved by  the  results  of  the  arbitra- 
tion, or  refuse  to  execute  the  sale  or 
purchase  in  accordance  with  the  award 
of  two  arbitrators,  petition  will  He 
within  15  days,  to  the  supreme  judicial 
court  or  any  justice  thereof,  on  which 
a  trial  shall  be  had  in  the  manner  of 
hearings  in  equity,  and  the  decree  of 
the- court  shall  be  final  and  binding,  and 
the  court  shall  have  jurisdiction  in  eq- 
uity to  compel  compliance  therewith  on 
behalf  of  either  party. 

On  payment  of  the  aforesaid  actual 
value  and  damages  for  severance,  if 
auy,  as  determined  by  award,  or  by  de- 
cree if  the  matter  is  taken  Into  court, 
the  municipality  shall  have  a  right  to 
the  title  and  possession  of  said  works 
(or  portion)  free  of  all  incumbrance,  or 
it  may  pay  over  the  difference  between 
the  amount  of  said  value  and  damages, 
and  the  amount  of  any  lien,  mortgage, 
or  other  incumbrance  on  the  property, 
and  take  the  works  subject  to  such  in- 
cumbrance. 

Sec.  6.  Upon  the  purchase  of  such 
works  (or  portion)  by  a  municipality,  all 
rights  of  the  former  owners  or  others 
to  make  or  distribute  gas  or  electricity 
in  that  municipality  shall  cease,  except 
as  far  as  expressly  agreed  to  the  con- 
trary between  such  persons  and  the  mu- 
nicipality in  pursuance  of  an  ordinance 
ratified  at  the  polls  or  a  vote  in  town 
meeting;  ProrAded,  however,  that  if  two 
or  more  distinct  plants  exist  in  the  mu- 
nicipality and  it  does  not  buy  them  all, 
those  remaining  unbought  shall  retain 
all  rights  of  manufacture,  distribution, 
etc.,  as  if  the  municipality  had  not  en- 
tered the  field. 

Sec.  7.  If  the  owners  of  said  works 
refuse  to  sell  or  decline  to  arbitrate  as 
above  provided,  the  city  or  town  may 
proceed  to  build  works  of  its  own. 

Sec.  8.  If  no  suitable  works  exist  in 
the  town  or  city  it  may  construct  them 
and  extend,  enlarge,  own,  control,  main- 
tain and  operate  them. 

PuUicity. 

All  business  done  by  virtue  of,  or 
in  connection  with,  any  public 
franchise,  shall  be  subjected  to  fre- 
quent and  thoro  inspection  and  au- 
diting by  ptiblic  officers,  and  the  re- 
sults shall  be  placed  on  file  in  inib- 
lic   offices   in    convenient  places   in 


LEGISLATIVE    FORMS. 


521 


the  localities  interested,  and  shall 
be  open  at  all  times  during  ordi- 
nary business  hours  to  examination 
by  any  person. 

The  legislature  shall  forthwith 
enact  laws  to  carry  this  provision 
into  effect  and  provide  penalties 
against  any  person,  firm  or  corpor- 
ation doing  such  business  and  in- 
terfering with  or  refusing  proper 
aid  and  facilities  in  the  execution 
of  this  law. 

Reduction  of  Rates. 

The  rates  charged  for  water,  gas, 
electric  light,  transit,  telephone 
and  other  monopolistic  services, 
shall  not  exceed  the  rates  required 
to  cover  operating  expenses  (in- 
cluding depreciation)  and  a  rea- 
sonable percentage  of  interest  or 
profit  on  the  real  present  value  of 
the  actual  legitimate  investment, 
or  the  actual  value  of  the  physical 
plant  (cost  of  duplication  less  de- 
preciation) plus  the  present  value 
of  any  amount  legitimately  paid 
for  franchises  considering  the  pro- 
portion of  the  franchise  term  still 
unexpired. 

The  legfislature  shall  forthwith 
enact  laws  to  carry  this  provision 
into  effect,  and  shall  amend  such 
laws  from  time  to  time  as  experi- 
ence may  show  to  be  necessary  to 
accomplish  the  purpose  and  exe- 
cute the  spirit  of  this  amendment. 

Taxation  and  Overcapitalization. 

Corporations  and  combines  shall 
be  taxed  upon  the  actual  value  of 
their  tangible  property  at  the  same 
rates  that  similar  values  in  individ- 
ual hands  are  taxed,  and  if  either 
the  face  or  market  values  of  the 
stock  and  bonds  or  other  securities 
of  any  company  or  combination 
reaches  a  total  in  excess  of  the  said 
actual  value  of  its  tangible  proper- 
ty, they  shall  be  taxed  on  such  ex- 
cess at  triple  rates  upon  the  full 
amount  of  the  excess. 

Progressive  Taxation. 
All  incomes  of  persons,  firms  or 
corporations,  of  $2,000  or  more  per 
year  shall  be  classified  in  groups 
ascending  in  geometric  progression, 
and  these  groups  shall  be  taxed  at 
rates  ascending  in  arithmetic  pro- 
gression, to  wit: 


Per  cent . 

P«r  cent. 

iucome. 

tax. 

iDeome. 

tax. 

$2,000. , 

...    1 

52,048,000. . 

...11 

4,000., 

...  2 

4,096,000. . 

...12 

8,000., 

...   3 

8,192.000. , 

...13 

16,000. 

..  .  4 

16.384,000. , 

...14 

32,000. 

...  5 

32,768.000. , 

...15 

64,000. 

...  6 

65,536,000. . 

...16 

128,000. 

...  7 

131,072,000. . 

...17 

256.000. 

...  8 

262,144,000. , 

...18 

512,000. 

...9 

524.288,000. , 

...19 

1,024.000. 

...10 

1.048,576.000. , 

...20 

This  is  a  mild  form;  the  tax 
would  not  be  likely  to  go  beyond 
16  or  17  per  cent,  in  anj'  case;  the 
following  is  more  thorogoing: 

Incomes  of  persons,  firms  or  cor- 
porations, of  $2,000  or  more,  shall 
be  classified  in  groups  ascending 
by  twos  as  far  as  $10,000,  then  by 
fives  to  $25,000,  and  from  there  on 
in  geometric  series.  These  groups 
shall  be  taxed  at  rates  ascending 
in  arithmetic  series  to  10,  and  then 
by  steps  of  5  up  to  60  per  cent, 
on  100  millions  as  follows: 


?2,000 1 

4.000 2 

6,000 3 

8,000 4 

10.000 5 

15.000 6 

20.000 7 

25.000 8 

50.000 9 

100,000 10 

Inheritances, 
vises  above  $10, 
the  same  rates 
such   as    accrue 
tions. 

In  his  great  book,  "The  Wonderfal 
Century,"  the  eminent  scientist,  Alfred 
Wallace  advocates  a  progressive  Income 
tax  of  10.  20.  30  and  40  per  cent,  on 
the  surplus  over  the  same  number  of 
thousand  pounds  in  the  income,  "rising 
Ing  to  100  per  cent,  on  the  surplus 
above  £50,000,"  and  "a  corresponding 
or  even  larger  increase  in  the  death 
dues."  This  is  much  more  drastic  than 
the  measures  we  have  proposed. 

The  per-centage  of  tax  should  rise 
rapidly  with  the  high  incomes,  but  a 
scale  running  up  to  100  per  cent  of  ail 
above  ?;250,000  seems  much  too  steep  a 
slope  for  present  conditions  in  this 
country. 

The  tax  should  be  progressive  as 
to  time  as  ^vell  as  to  amount  of  in- 
come, that  is,  all  the  percentages 
should  be  increased  every  few  years 
till  a  reasonable  diffusion  of  wealth 
is  attained  or  co-operative  industry 
takes  the  place  of  private  monopoly 
and  competition,  in  either  of  which 
cases  incomes  will  be  fairlv  equal- 
ized. (See  pp.  528,  530,  347  Svdss, 
169  New  Zealand.) 


Per 

eent. 

Ineom*.              t 

:ax. 

$200,000 

.15 

400.000 

..20 

800.000 

.25 

1.600.000 

.30 

3.200.000 

,  .35 

6.000.000 

.40 

12.800.000 

.45 

25,600,000 

.50 

51,200,000 

..55 

102.400,000 

.60 

bequests    and 

de- 

,000  to  be  taxed 

at 

as  incomes,  except 

to   public   institu- 

522 


APPENDIX     I. 


Special  Legislation. 
Special  legislation  affecting  mu- 
nicipalities shall  be  invalid,  except 
so  far  as  asked  for  or  adopted  by 
the  municipality  affected.  For  the 
purposes  of  this  provision,  cities 
and  towns  are  divided  into  three 
classes:  1st,  those  below  8,000  popu- 
lation; 2d,  those  between  8,000  and 
100,000,  and  3d,  those  above  100,000. 

Street  Franchises  1. 

Each  city  and  town  shall  have 
full  control  of  its  streets,  and  all 
grants,  extensions  or  renewals  of 
•water,  gas,  electric  railway,  tele- 
graph, telephone,  or  other  import- 
ant franchises  and  privileges  there- 
in shall  be  on  such  terms  as  the 
local  authorities  may  prescribe, 
subject  to  the  referendum  at  the 
option  of  the  executive  or  1/3  of 
either  council,  or  upon  petition  of 
5  per  cent,  of  the  voters. 

Street  Franchises  2. 

Street  franchises  and  local  public 
works   of   a   business   nature   such 


as  water  and  lighting  plants,  street 
railways  and  telephone  exchanges, 
shall  be  matters  of  sole  municipal 
sovereignty  beyond  the  interfer- 
ence or  control  of  the  Legislature, 
and  subject  only  to  +his  constitu- 
tion: Provided,  that  all  ordinances 
or  acts  granting,  extending,  or  re- 
newing such  franchises  or  provid- 
ing for  the  construction,  purchase, 
sale  or  lease  of  such  ^vorks,  shall 
be  subject  to  the  referendum  upon 
petition  of  5  per  cent,  of  the  voters 
of  the  municipality  filed  in  the 
executive  office  within  30  days 
after  passage  and  publication  of 
said  act  or  ordinance. 


Sometimes  one  of  these  singlcr- 
minded  provisions  can  be  passed 
where  nothing  can  be  done  with 
the  broader  measures.  Work  to 
get  w^hatever  can  be  obtained  now, 
even  if  it  be  only  a  clause  against 
special  legislation.  Every  step  in 
the  right  direction  makes  future 
progress  easier. 


THE  TRUE  CITY 

IS  THE  CITY  WHERE  JUSTICE  AND  MANHOOD 

ARE  MORE  REGARDED  THAN  MONEY— 

THE  CITY  WHERE  POWER  AND  PROSPERITY  ARE  FOR 

THE  WHOLE  PEOPLE 

AND  NOT 

FOR  THE  PRIVATE  POSSESSION 

OF  A  FEW  POLITICIANS  AND  MONOPOLISTS. 


Appendix  II. 


l!^otes  Made  after  tlw  Chapter  Proofs  were  Paged. 


A.  Gas.  1. — The  Haverhill  Gas  Co. 
charges  $1.10  per  thousand  and 
saj's  that  its  operating-  expenses  are 
71  cents  per  thousand  and  that  its 
plant  is  worth  over  $400,000,  or 
about  $4.3  per  thousand  feet  of  an-, 
nual  output.  The  actual  amount 
of  money  that  has  been  paid  in  by 
the  corporators  is  only  $75,000; 
wherefore  if  the  company's  state- 
ment of  value  is  correct,  $325,000 
or  more  of  profits  have  been  put 
into  the  plant  after  paying  an  aver- 
age of  10  per  cent,  dividends  a  year. 
The  people  have  been  made  to  pay 
large  interest  on  the  actual  invest- 
ment and  in  addition  have  paid  the 
cost  of  new  construction  and  im- 
provements quintupling  the  value 
of  the  plant.  It  seems  clear  that  at 
least  $325,000  of  the  Haverhill  plant 
really  belongs  to  the  people;  it  has 
been  built  with  their  money;  money 
taken  from  them  by  unjust  rates; 
rates  yielding  10  jyer  cent,  plus  a 
large  surplus  are  certainly  unfair. 
If  the  people  wish  to  buy  the  plant 
they  should  be  allowed  to  do  so  on 
payment  of  $75,000,  less  deprecia- 
tion. And  until  they  elect  to  buy 
the  plant  rates  shoiild  be  reduced 
so  as  to  cover  operating  expenses, 
taxes,  depreciation  (on  the  private 
capital  in  the  plant  at  least)  and  a 
fair  interest  on  the  present  value 
of  the  investment  put  into  the 
plant  by  the  capitalists  (i.  e.  in- 
terest on  $75,000,  less  depreciation.) 

At  present  (Nov.,  1899)  the  city  is 
asking  the  Gas  Commission  for  im- 
mediate reduction  of  rates  to  90 
cents  per  thousand,  w^hich,  on  the 
company's  own  showing,  will  yield 
a  good  profit  on  the  real  investment 
of  the  owners.  Last  year  the  com- 
pany paid  dividends  equal  to  50  per 
cent,  on  the  paid-in  capital  and  had 
a  surplus  of  20  per  cent,  more,  mak- 
ing 70  per  cent,  profit  on  the  in- 
vestment really  made  by  the  capi- 
talists. The  city  also  asks  permis- 
sion to  see  the  returns  made  bv  the 


company  to  the  Gas  Commission, 
believing  that  the  alleged  operating 
cost  of  71  cents  per  thousand  is 
much  above  the  truth.  This  request 
the  Commission  has  denied.  The 
legislature  will  be  askt  to  pass  an 
order  preventing  the  suppression 
or  hiding  of  returns  in  the  office  of 
this  public  Commission,  and  allow- 
ing public  inspection  of  said  re- 
turns as  of  all  other  public  records. 
For  further  particulars  see  p.  539. 

2.  Oas  at  50  Cents  and  a  Big  Bonus 
Offered  for  the  Franchise. 
New  York,  Dec.  19.  The  Common 
Council  of  Passaic,  N  J.,  was  about  to 
close  a  contract  with  ex-Mayor  Andrew 
McLean,  who  guaranteed  to  supply  gas 
In  Passaic  at  50  cents  a  thousand,  main- 
tain flfty-three  gas  lamps  for  the  city 
aiul  furnish  a  different  lamp  at  about 
two-thirds  their  present  cost  by  means 
of  a  gas  plant  controlled  by  Dr.  Chls- 
holm,  of  San  Francisco.  Upon  this  the 
United  Gas  Improvement  Co.  offered  to 
pay  120.000  for  seventeen  years  to  the 
city,  $20,000  to  each  of  the  hospitals, 
$28,000  for  a  new  school,  will  give  the 
police  and  firemen's  relief  fund  $10,000 
each,  and  will  also  furnish  Passaic  city 
with  50  cent  gas  and  private  consumers 
at  the  same  rate.  (No  wonder  the  U. 
G.  I.  Go.  strained  so  many  nerves  to 
get  the  right  to  sell  gas  at  one  dollar  in 
Philadelphia.  The  Passaic  offer  created 
a  big  surprise,  and  caused  no  action  to 
be  taken  on  the  gas  question.  The  ac- 
tual cash  outlay  pravided  for  In  the 
United  Gas  Company's  offer  is  $928,000 
besides  the  penalties  Incurred.— (Phila- 
delphia Ledger.) 

If  the  United  Gas  Improvement 
Co.  can  afford  to  furnish  50  cent 
gas  in  Passaic  and  pay  a  large  bo- 
nus for  the  privilege,  what  sort  of 
monopoly  profits  is  it  making  on 
100  cent  gas  in  Philadelphia,  170 
cent  gas  in  Trenton,  etc.? 

B.  Electric  Light.  1. — Jacksonville 
(Fla.)  Public  Electric  Light  Plant. 
Wh«n  the  municipal  plant  was  es- 
tablish t,  the  private  companies  were 
charging  28  cents  per  kilowatt. 
The  city  plant  reduced  the  charge 
at  once  to  7  cents  per  kilowatt  and 
has  "kept  it  there.  For  a  2,000  c.  p. 
arc  burning  all  night  the  companies 
cliarged  $15  a  month;  the  city  plant 


523 


524 


APPENDIX   II. 


fixt  the  rate  at  $7.50  a  month.  For 
inidnig"ht  arcs  the 'old  private  rate 
was  $13,  and  the  new  city  rate, 
$6.50.  The  old  companies  were 
forced  to  meet  these  rates,  and  the 
])rice  of  gas  was  also  forced  down 
from  $3  to  $1.50  per  thousand  feet. 
Prior  to  the  establishment  of  its 
municipal  plant  the  city  was  pay- 
ing- $8,000  a  year  for  lighting  its 
streets  with  gas.  Xow  the  streets 
are  lighted  free  by  electricity;  also 
the  public  buildings,  jails,  fire  sta- 
tions, armories,  hospitals  and  all 
charitable  institutions.  The  street 
and  commercial  lines  are  being  con- 
stantly extended  out  of  earnings. 
A  considerable  sum  is  being"  laid 
by  for  a  sinking  fund,  and  the  busi- 
ness is  paying  5  per  cent,  interest 
on  the  investment.  At  present 
(Oct.,  1899)  with  160  arcs  and  300 
30  c.  p.  incandescents  in  the  i)ub- 
lic  service,  and  85  arcs  and  15,000 
16  c.  p.  lamps  in  the  commercial 
system,  serving  1,250  customers,  the 
total  operating  expenses  are  at  the 
rate  of  $36,000  a  year,  extensions 
$2,100,  receipts  $45,000,  besides  pub- 
lic lights  worth  $20,000  a  year  at 
present  commercial  rates.  Invest- 
ment $150,000.  Profits  at  the  rate 
of  $24,000  above  operation  and  de- 
preciation; most  of  it  in  the  shape 
of  free  public  lights.  It  is  esti- 
mated that  the  municipal  jjlant 
saves  the  i>eople  75  per  cent,  of  the 
former  cost  of  light  for  equal  ser- 
vice. From  the  data  in  my  posses- 
sion I  can  only  figure  out  65  to  70 
per  cent,  saving  including  reduced 
rates,  cash  xjrofits  and  free  lights 
and  subtracting  interest.  By  the 
reduction  of  rates  alone  (gas  and 
electric,  public  and  private)  the 
people  are  now  saving  at  a  rate 
that  will  amount  each  year  to  more 
than  the  entire  cost  of  the  munici- 
pal plant.  Thru  the  entire  history 
of  municipal  control  of  public 
works  in  Jacksonville  not  a  breath' 
of  suspicion  of  political  jobbery  has 
been  attached  to  the  management. 
(See  City  Government,  Nov.,  1899.) 

C.  Street  Transit. — 1.  Cost  in^ew 
York.  According  to  Mr.  H.  H.  Vree- 
land,  president  of  the  Metropolitan 
Street  Railway  Co.,  the  nickel  street 
car  fare  is  divided  as  follows:  For 
labor,  1.95  cents;  materials,  .485 
of  a  cent;  taxes,  .265  of  a  cent;  in- 
terest and  dividends,  2.3  cents. 
Under    public     ownership    free   of 


debt  a  2¥i  cent  fare  would  pay  for 
labor  and  materials,  even  without 
considering  the  reduction  of  cost 
per  passenger  siire  to  result  from 
the  increased  traffic  consequent 
upon  low  fares.  Including  the  trans- 
fers  as   so   many   additional   rides, 


the  present  average  fare  per  ride 
on  the  iletropolitan  sj'steno^  is  only 
3  1-3  cents,  and  as  46  per  cent  of 
the  fares  go  for  interest  and  divi- 
dends, less  than  2  cents  per  ride 
would  pay  running  expenses  under 
full  municipal  ownership  without 
considering  the  increase  of  travel 
sure  to  come  with  a  2-cent  or  2^4 
or  3-cent  fare. 

2.  Defiance  of  Laic  hy  Street  Rail- 
way Companies.  The  following  ac- 
count is  taken  from  The  Outlook, 
Nov.  25,  1899: 

"Highway  Robbery. 

Within  the  past  few  weeks  news- 
papers in  this  city  and  its  vicinity  have 
abounded  in  such  titles  as  "Streets 
Stolen."  '-Tracks  Torn  Up,"  "Roads 
Ruined."  The  cause  Is  found  in  several 
unusually  audacious  and  Impudent  at- 
tempts on  the  part  of  rival  trolle.v  cor- 
porations to  violate  the  rights  of  the 
public  and  even  to  defy  the  law  itself. 
The  usefulness  of  the  trolley  roads  be- 
tween suljurban  towns  is  unquestioned, 
but  their  rapid  extension  has  led  to 
gross  carelessness  in  the  matter  of  pro- 
tecting the  roads.  Thus,  Westchester 
County,  where  the  particular  outrages 
above  referred  to  took  place,  has  been, 
at  great  cost  and  labor,  provided  with 
many  fine  macadamized  roads,  leading 
often  through  beautiful  scenery;  their 
use  forms  one  of  the  most  agreeable 
of  country  pleasures  to  be  had  near 
New  York,  to  say  nothing  of  their  great 
and  increasing  practical  utility.  That 
such  roads  as  these  should  be  wantonly 
and  repeatedly  torn  up  without  sanc- 
tion of  law  and  while  litigation  as  to 
rival  franchises  is  still  pending— yes, 
even  when  injunctions  are  in  force  to 
prevent  this  very  thing— justifies  the 
epithet  high-handed  robbery.  In  one  re- 
cent case  the  two  rival  companies  put 
five  hundred  men  (about  evenly  divided) 


THE   LATEST   NOTES. 


525 


at  work  siniultanoously  on  a  short  sec- 
tion of  road,  laying  their  rival  tracks 
side  by  side  and  absolutely  ruining  the 
road  unless  it  be  entirely  rebuilt. 
Fights  between  the  laborers  of  the  two 
gangs  were  common,  and  something 
very  like  a  pitched  battle  has  been  re- 
peatedly threatened.  In  this  case  one 
of  the  companies  had  only  the  most 
shadowy,  second-hand,  semi-defunct 
clnini,  and  the  residents  along  the  road 
were  striving  to  obtain  an  opporttmity 
to  be  heard  in  the  matter.  At  another 
place  in  the  same  county  a  city  gov- 
eriiiiicnt  was  obliged  to  remove  forcibly 
a  line  of  rail  and  to  protect  its  laborers 
by  a  platoon  of  poliQe  against  a  threat- 
ened armed  attack  by  the  corporation's 
eni])loyees. 

Of  tlie  bribery  of  small  city  and  vil- 
lage officials — men  to  whom  a  hundred 
dollars  is  a  strong  temptation— of  the 
pulling  of  political  wires  for  corpora- 
tion ends,  and  of  the  incessant  employ- 
ment of  legal  trickery  and  subterfuge, 
there  are  constant  accusations  and  clear 
moral  evidence.  But  what  we  note  here 
Is  the  increasing  tendency  of  these  con- 
tending litigants,  the  rival  trolley  com- 
panies, to  forestall  the  decisions  of 
courts  and  grants  of  franchises  by  ac- 
tual violence.  This  sort  of  thing  grows 
with  immunity.  It  is  time  that  an  ex- 
ample should  be  made  of  the  more  flag- 
rant violators  of  the  law.  Oonflscation 
of  roads  and  road  privileges  has  become 
altogether  too  common  and  too  easy. 
The  iirize  in  these  vicious  rivalries  is 
usually  not  iuiniediate  profit,  but  the 
rich  future  possibilities  of  gain.  The 
people,  too,  should  look  to  the  future, 
and  fight  vigorously  for  their  parkways, 
beautiful  residence  streets,  and  costly 
highroads.  (From  the  Outlook.  Nov. 
25,   1S99). 

/>.     Telephone  and  Telegraph. 

1.  Telephone  Taxes. 
Columbus,  O.,  Dec.  19. — By  a  decision 
of  the  Supreme  Court  to-day  a  new 
method  of  tax  valuation  far  reaching 
In  its  effect  will  be  establisht  in  Ohio. 
The  decision  directly  affects  the  tele- 
phones of  the  Bell  Company,  which  are 
held  to  be  taxable  at  their  rental  value, 
estimated  at  $23.S  each,  instead  of  their 
actual  cost,  $3.40  each.  The  authorities 
estimate  that  there  are  2.'i.0<X)  Bell  tele- 
phones in  use  in  the  State.  If  each  of 
these  instruments  earns  .$14  net  for  the 
Bell  Telephone  Company,  it  represents 
a  value  of  $23.3  to  each  instrument. 
On  2.5.000  instruments  it  represents  an 
earning  in  the  State  of  Ohio  of  ?5,833,- 
000.  The  Attorney  General  claims  that 
on  this  basis  the  company  owes  the 
State  ?80,000  annually. 

The  probability  is  that  the  aver- 
age net  return  to  the  company  is 
considerably  more  than  $14  per 
phone.  The  attorney  General's  es- 
timate appears  to  be  qnite  conser- 
vative. 

E.  Private  Mo)tnpoli/. — 1.  Po.<?.si7)/e 
Perpetuation — Vavdal  Ririn.  Macau- 
la>fs  Warninfj.    If  a  nnited  body  of 


men  owned  all  the  guns  in  the  com- 
munity' and  the  mag"azines  of  pow- 
der and  shot,  and  the  rest  of  the  ' 
people  had  no  weapons,  the  powder 
monopolists  conld  do  what  they 
pleased  with  the  g-overnment  and 
the  people.  But  distribute  the  g-uns 
and  ammunition  so  that  each  citizen 
shall  have  a  supply,  and,  with  rea- 
sonable public  spirit,  military  des- 
potism will  be  imjxjssible.  The  pri- 
vate monopoly  of  franchises  and 
magazines  of  wealth  has  had  effects 
in  some  degree  similar  to  the  ef- 
fects of  the  concentration  of  mili- 
tary in  power  in  the  hands  of  a 
conquering  army  or  hereditary  no- 
bility-. Only  industrial  diffusion 
can  overcome  industrial  despotism 
and  bring  us  full  liberty  and  dem- 
ocracy. 

It  is  not  difficult  to  see  how  pri- 
vate nionoix)ly  might  pos^sibly  per- 
petuate its  power  if  the  people 
delay  too  long.  The  growth  of  mo- 
nopoly reduces  larger  and  larger 
masses  of  people  into  industrial 
subjection.  Dependence  stifles  re- 
sistance and  saps  the  fountains  of 
manhood.  Custom  and  training 
may  make  our  ■workmen  helpless 
parts  of  a  great  machine,  and  even 
make  them  believe  in  the  righteous- 
ness of  the  conditions  that  oppress 
them.  Industrial  serfs  may  not 
only  be  made  to  vote  as  their  mas- 
ters direct,  but  to  think  as  they 
wish.  Men  may  be  taught  to  rev- 
•M-ence  their  opressors,  applaud  the 
doings  of  industrial  despots,  and 
tight  for  their  monopolistic  mas- 
ters as  they  did  in  former  times, 
for  their  emperors  and  kings.  I  do 
not  agree  with  those  who  think 
this  is  likely,  but  it  is  certainly 
conceivable  in  the  light  of  history 
and  the  laws  of  human  nature,  and 
if  we  would  avoid  the  possibility 
we  must  act  while  the  people  have 
independence  enuf  to  resist  the  en- 
croachments of  monopoly,  and  man- 
hood enuf  to  make  their  resistance 
effective.  Let  us  make  the  great 
franchises  and  natural  monopolies 
public  property  then  we  maybe  able 
to  battle  successfully  with  monopo- 
lies of  association  till  the  groAvth  of 
co-oi)erative  thought  shall  solve  the 
remainder  of  the  problem  by  the 
development  of  voluntarj'  co-opera- 
tion. 

There  is  another  possibility  that 
must   not   be    forgotten,    viz.,    that 


526 


APPENDIX    II. 


the  growth  of  monopolj'^  and  sub- 
jection without  a  corresponding-  de- 
velopment of  slavish  sentiment  and 
submission  might  i^roduce  volcanic 
conditions. 

In  1852,  referring-  to  the  argu- 
ments used  by  Gibbon  and  Adam 
Smith  to  prove  that  the  world 
would  not  again  be  flooded  with 
barbarism,  Macaulay  said  that  "civ- 
ilization itself  might  eng-ender  the 
barbarians  who  should  destroy  it. 
It  had  not  occurred  to  them  (Gib- 
bon and  Smith)  that  in  the  very 
heart  of  great  capitals,  in  the 
neighborhood  of  splendid  palaces 
and  churches  and  theatres  and  li- 
braries and  museums,  vice  and  ig- 
norance might  produce  a  race  of 
Huns  fiercer  than  those  who  marcht 
under  Attila,  and  of  Vandals  more 
bent  on  destruction  than  those  who 
followed  Genseric." 

We  may  be  inclined  to  think  Ma- 
caulay's  fears  unfounded,  but  we 
must  admit  that  a  new  emphasis 
has  been  given  to  his  words  by  the 
recent  rapid  growth  of  cities,  the 
increase  of  the  slums,  the  sundering- 
of  classes,  the  intensification  of  an- 
tag-onisms,  the  widening  breach  be- 
tween rich  and  poor,  the  vast  con- 
centration of  political  and  indus- 
trial power  in  the  hands  of  a  few 
unscrupulous  men,  and  the  grad- 
ual pressing  down  of  the  middle 
classes  toward  the  proletariat. 
Every  man  that  monopoly 
squeezes  out  of  the  middle  classes, 
each  independent  owner  reduced  to 
a  dependent  wage  worker,  each 
skilled  mechanic  or  artisan  trans- 
lated into  a  mere  discretionless  cog 
in  a  big  machine,  every  Avorkman 
thrown  out  of  employment  by  the 
concentration  of  industry  without 
adequate  provision  for  the  redistri- 
bution of  displaced  labor,  lowers 
the  average  level  of  our  industrial 
life  and  adds  to  the  forces  tending 
to  increase  the  proletariat  and 
everj'  accession  to  the  jiroletariat 
is  a  new  drop  in  the  sea  that  may 
submerge  our  civilization.  Let  us 
do  what  we  can  to  develop  thought, 
character,  sympathy  and  consci- 
ence; establish  jusl^ice.  insure  do- 
mestic tranquillity,  provide  for  the 
common  safety,  promote  the  gen- 
eral welfare,  and  secure  the  bless- 
ings of  liberty  to  ourselves  and  our 
posteritj-,  by  ordaining  diffusion  in 
place  of  congestion,  government  by 


the  people  in  place  of  government 
by  an  elective  aristocracy,  and  the 
partnership  of  public  ownership  in 
place  of  private  monopoly — a  union 
of  all  for  all  instead  of  a  mastery 
of  most  by  and  for  a  few. 

2.  The  growth  of  direct  legisla- 
tion, public  ownership  and  co-oper- 
ative industry  with  the  manhood 
they  express  and  develop,  is  the 
hope  of  the  future.  Xone  are  more 
interested  in  this  movement  than 
the  wealthy.  If  they  resist  the  cur- 
rent that  sets  toward  full  democ- 
racy in  government  and  industry, 
if  they  jiersist  in  seeking  to  in- 
trench and  jierpetuate  private  mo- 
nopoly and  industrial  aristocracy 
till  the  people  lose  i>atience  and  the 
forces  of  democracy  burst  into  re- 
bellion, their  power  and  riches  will 
be  swept  from  them  and  even 
their  lives  may  be  in  danger  ; 
whereas  if  they  join  the  march  to- 
ward industrial  justice  they  may 
easily  place  themselves  at  the  head 
of  the  column  and  become  respect- 
ed and  honored  leaders  in  a  new 
evolution  instead  of  being  trampled 
under  foot  in  a  new  revolution,  and 
shorn  of  their  possessions  in  a  new 
and  violent  emancipation. 

When  talking  of  industrial  de- 
mocracy sometimes  I  have  heard 
men  of  wealth  remark:  "Yes,  it  is 
coming;  I  can  see  that  clearly  enuf, 
but  it  will  not  come  in  my  time, 
and  I  shall  continue  doing  business 
on  the  old  plan."  This  is  not  only 
a  selfish  attitude,  but  short-sighted 
selfishness  at  that.  History  some- 
times moves  very  fast.  In  the  fif- 
ties the  Southern  planters  did  not 
dream  of  forcible  emancipation  in 
the  next  decade.  In  1785  no  one 
dreamed  that  the  French  aristoc- 
racy would  fall  in  a  few  brief  years. 
Americans  will  never  establish  a 
reign  of  terror  under  any  circum- 
stances, but  if  justice  is  delajed  too 
long-  the  people  may  be  tempted 
to  destroy  monopoly  without  due 
care  as  to  the  fair  distribution  of 
the  burden  of  the  change  thruout 
the  commimity  to  be  benefited  by 
it.  I  have  heard  the  leaders  of  an 
organization  that  is  rapidly  grow- 
ing in  strength,  advocate  the  social- 
ization of  capital  without  compen- 
sation, urging  that  every  fortune 
was  a  social  product  and  ought  to 
T>elong  to  the  peo])le;  and  I  have 
seen  great  audiences  of  gootl-look- 


THE   LATEST   NOTES. 


527 


ing-  working-  people  applaud  the 
pro[K>.sition.  It  has  been  the  com- 
monplace of  history  for  those  in 
power  to  resist  till  the  people  rode 
over  them  rufshod.  Can  we  not 
have  a  chang-e?  Can  we  not  learn 
something-  from  the  past?  Will 
not  the  wealthy  use  their  heads  and 
their  hearts  and  join  with  the  work- 
ers to  secure  just  conditions  by 
just  and  moderate  methods?  Will 
the  wealthy  manage  and  direct  the 
train  of  progress,  or  will  they  be 
found  beneath  its  wheels? 

:;.  The  Standard  Oil  Trust  offered 
$400,000  to  Hon.  Frank  S.  Monnett, 
Attorney   General    of    Ohio,   if    he 
would  simplj'  do  nothing'  in  a  cer- 
tain suit  so  that  the  ease  against 
the  Oil  Combine  for  violation  of  the 
trust  laws   should   not   be  pushed. 
Mr.  Monnett,  tho  a  poor  man,   re- 
fused the  bribe,  pushed  the  suit  and 
made  the  outra^ous  offer  public, 
Dec.   27,   1S99.     Mr.   :Monnett  spoke 
to  the  Twentieth  Centurj'  Club  in 
the  lecture  hall  of  the  Boston  Uni- 
versity    Law     School.      The     next 
evening  he  was  to  speak  in  Cooper 
Institute,   New  York,   but    he  was 
not  allowed  to  speak  as  announced, 
because,   it  is   said,   the   Oil   Trust 
people     threatened     to     withdraw 
their  subscriptions   to    Cooper  In- 
stitute work  if  Monnett  were  per- 
mitted to  sjieak.     As  said  subscrip- 
tion    amounted    to    a    large    sum 
($300,000  it  is  reported)   the  Insti- 
tute management  thot  best  to  omit 
Mr.  Monnett.     Half  a  million  would 
not  buy    Mr.   Monnett,    but  three 
hundred   thousand   can    keep    him 
from  speaking  in  Cooper  Institute. 
Such  gag-rule  fits  very  nicely  into 
Standard  Oil  history. '  The  Cooper 
Institute    case    belongs    with    the 
Bemis  expulsion  from  Chicago's  oil 
imivei-sity     because     he     said     too 
much  about  the  benefits  of  munici- 
pal oAvnership  of  gas  works  as  dis- 
closed   by    his    investigation    into 
that    subject.     In    ]Monnett's    His- 
tory, of  the  case  of  State  vs.  Stand- 
ard Oil  Co.,  in  Ohio  (a  bulky  book 
of  400  pages)   one  of  the  most  en- 
lightening portions  consists  of  the 
testimony  (pp.  153,  189,  226)  about 
the   Trust's   burning  its    books   to 
keep  its  transactions  from  ever  ap- 
pearing in  court  or  coming  clearly 
to  light  in  any  way.     The  Oil  Trust 
is  not  proud  of  its  biography.    Gag- 


gery  goes  naturally  with  the  brib- 
ery and  perjuring  it  has  so  often 
practiced  (see  above  pp.  88,  89), 
and  the  burning  of  account  book.s 
is  a  fit  companion  to  the  theft  and 
mutilation  of  public  records  (see 
above  pp.  63,  89.) 

4.  Publicity.    In  the    great  effort 
of  John  R.  Dos  Passos,   of  No.   20 
Broad  street,  New  York,  to  justify 
and   defend   the   trusts   before   the 
Industrial  Commission  at  Washing- 
ton, Dec.  12,  1899,  it  is  noteworthy 
that  the  demand  for  more  publicity 
of   corporate   and    combine   affairs 
was  strenuously    opposed    (Passos' 
Arg.,  p.  61).     That  is  the  key  of  the 
corporation  and  trust  position.     If 
they  can    keep  their    transactions 
secret  they  are  comparatively  safe. 
But  they  know  that  if  the  people 
knew  what  they  know  about  their 
history  and   methods  their    power 
would  be  shortlived.     That  is  why 
they  refuse  to  produce  their  books 
and  burn  them  rather  than  allow 
them   to  be  inspected.     This    pub- 
licity which  the  corporations    and 
trusts   are  so    much    afraid   of    is 
evidently  the  very  thing  the  public 
should  insist  upon.  Dos  Passos  saj's 
it  is  none  of  the  public's  business. 
But  I  do  not  think  the  public  will 
agree  Avith  him.     Where  the  public 
supplies  a  franchise  it  is  clearly  a 
partner  and  entitled  to  full  knowl- 
edge of  the  company's  affairs.    And 
where  the  aggregation  of  capital  is 
a  combine   seeking  to  control   the 
market  it  is  under  the  ban  of  both 
common   and   statute   law   and  the 
State  has  the  same  right  to  inves- 
tigate its  doings  as  in  the  case  of 
any  other  wrongdoer.     The  public 
also  has  the  right  of  inspection  of 
all  concerns  to  whatever  extent  it 
may  deem  necessary  to  prevent  vio- 
lations of  law  or  departures  from 
public  policy. 

We  can  clip  the  wings  of  the 
trusts  by  insisting  on  publicity. 
We  can  tax  monopolistic  combines 
at  a  higher  rate  than  ordinary  busi- 
ness, at  the  same  time  putting 
specially  low  taxes  on  co-operative 
bu.siness  as  being  of  exceptional 
value  to  the  public.  And  with  pub- 
lic ownership  of  the  railroads  we 
could  refuse  transportation  to 
goods  made  by  concerns  not  freely 
open   to   inspection   or    not    doing 


528 


APPENDIX   II. 


business  on  a  co-operative,  or  at 
least  on  a  profit-sharing  and  labor 
co-partnership  basis.  We  can  make 
the  disadvantages  of  aggregating 
capital  on  the  aristocratic,  anti-pub- 
lic, ring-for-private-profit  plan,  so 
emphatic;  and  the  advantages  of 
aggregating  capital  for  co-operative 
industry,  so  pronounced,  that  capi- 
tal will  crystallize  along  co-opera- 
tive lines,  and  offer  employees  and 
consumers  a  reasonable  share  in 
the  benefits  of  the  combine.  A 
trust  is  a  good  thing  for  those  in- 
side of  it;  let  the  people  inside  and 
it  will  be  all  right.  The  union  of 
ca])ital  is  most  excellent,  if  it  is  a 
union  for  service  and  not  for  con- 
quest. The  -working  people  of  this 
country  have  it  in  their  own  hands 
to  say  whether  united  capital  shall 
be  their  servant  or  their  master. 
Put  big  burdens  on  air-tight,  all- 
for-ring  trusts,  and  high  premiums 
on  open,  co-operative,  fair-show^- 
for-the-people  trusts,  and  the  latter 
will  grow  like  morning  glories  in 
a  sunny  garden,  while  the  former 
will  die  like  grass  beneath  a  heavy 
plank. 

5.  For  years  the  Philadelphia 
Councils  have  been  tampered  with 
by  corporate  infiuences  to  prevent 
proper  repair  and  improvement  of 
important  public  works  in  order  to 
build  up  an  excuse  for  selling  or 
leasing  them  to  private  syndicates. 
This  policy  with  the  gas  works  cul- 
minated in  the  recent  shameful 
lease  which  Avas  really  a  gift  by 
Cour.cils  to  their  sin-dicker-ate 
friends  of  a  privilege  worth  proba- 
bly not  less  than  40  or  50  millions, 
considering  the  present  known  cost 
of  gas  making  and  the  probability 
of  still  further  cheapening  of  cost 
in  the  period  of  the  lease. 

With  the  water  Avorks  the  same 
polic.y  has  been  pui-sued  (see  art. 
in  Nov.  Forum,  1899,  by  Hon.  Clin- 
ton llogers  Woodruff),  but  the 
Mayor  and  his  committee  of  ex- 
perts, together  with  the  Municipal 
League  and  various  other  citizen's 
organizations,  succeeded  in  rousing 
sufficient  public  sentiment  and  ac- 
tion to  secure  the  submission  of  a 
12  million  loan  for  the  improve- 
ment of  the  water  works,  and  the 
people  voted  yes  114,000,  to  24,000 
noes,  so  the  wrecking  policy  which 
has     made     Philadelphians     drink 


their  allotted  pecks  of  dirt  with 
undue  rapidity  in  recent  years,  has 
met  with  its  little  Waterloo,  and 
Philadelphia  water  will  cease  to 
make  the  traveler  think  he  is  in 
the  land  of  mixed  drinks,  and  coal- 
tar-linty-clay  washing  fluid. 

6.  Land  Monopoly;  Unearned  Incre- 
ment, etc.  Private  monopoly  of 
land  is  undoubtedly  productive  of 
serious  injustice,  and  naay  endanger 
freedom  and  democracy  a.  indi- 
vidual holdings  are  very  unequal, 
or  a  number  of  owners  combine 
against  the  landless.  It  is  unjust 
that  vast  increments  of  value  due 
to  the  growth  of  the  community 
and  the  development  of  civilization, 
and  in  no  way  to  the  effort  or 
merit  of  the  owners  of  the  favored 
lands,  should  accrue  to  such  oirners. 
Values  produced  by  the  commu- 
nity belong  to  the  community. 
Again,  if  some  ha^e  large  domains 
while  others  have  none,  or  if  a 
large  number  of  moderate  holdings 
are.  combined  under  a  single  control 
amounting  to  united  ownershiiJ  as 
against  the  landless  class,  then  the 
further  evils  of  class  and  mastery 
develop,  and  become  specially-  pro- 
nounced where  the  landlords  are 
few  and  mostly  absent  from  the 
country.  To  prevent  the  conges- 
tion of  wealth  by  private  absorbtion 
of  vakies  created  by  the  growth  of 
society  and  civilization,  to  elimi- 
nate land  aristocracy,  and  to  secure 
to  all  persons  their  just  rights  to 
the  use  of  the  earth,  it  is  necessary 
that  land  should  become  public 
property  in  effect,  (whether  title 
passes  or  not)  either  by  purchase 
or  by  absorbtion  of  the  rental  value 
in  the  form  of  taxes,  the  change  in 
either  case  to  be  gradual  and  upon 
fair  compensation,  for  those  who 
seek  justice  must  be  willing  to  do 
justice.  All  future  unearned  incre- 
ment may  rightly  be  taken  in  taxes 
as  John  Stuart  ^lill  so  forcefully 
urged  (see  Equity  Series  Xo.  2). 
And  progressive  taxation  of  rents  in 
common  with  similar  taxation  of 
other  monopolistic  and  capitalistic 
incomes  would  be  perfectly  just. 
Such  taxation  should  be  prog-res- 
sive  both  as  to  time  and  as  to  ex- 
tent of  holding  and  amount  of  rent 
■ — the  per  cent,  increasing  with  the 
size  of  the  individual  income  or 
holding,    and    all    percentages    in.- 


THE  LATEST   NOTES. 


529 


creasing  by  easy  stages  every  3  or 
4  years.  These  measures  together 
with  the  gradual  public  purchase 
of  lands  beginning  with  those 
which  form  the  basis  of  productive 
and  distributive  monopolies,  will- I 
believe,  afford  a  reasonable  solution 
of  the  problem. 

The  "single-tax"  idea  contains  a 
great  truth  and  a  great  error.  Its 
purpose,  to  restore  to  the  people  the 
beneficial  ownership  of  the  soil,  is 
right;  but  its  method,  the  concen- 
tration of  all  taxes  on  land  values, 
taking  practically  the  whole  rent 
due  to  land-vahies  at  one  sweep 
without  compensation,  is  very 
wrong.  It  is  wrong  because  it  is 
confiscation,  class  oppression, 
grievously  unequal  compulsory 
contribution  to  a  common  public 
purpose,  and  because  it  neglects 
other  matters  even  more  vital  than 
the  unearned  increment  from  land. 
If  A  and  B  earn  and  save  $2,000 
each,  and  A  buys  land  while  B 
invests  in  goods  or  buildings,  both 
acting  under  the  sanction  of  ex- 
isting law,  it  is  not  fair  to  relieve 
B  of  all  taxes  and  place  on  A  the 
whole  burden  of  the  common  gov- 
ernment; to  deprive  A  of  substan- 
tially the  whole  value  of  his  in- 
vestment by  a  land  value  tax  with- 
out compensation  for  his  land 
which  is  virtually  taken  from  him 
for  public  use  is  simply  confisca- 
tion and  would  not  be  permitted 
by  either  State  or  Federal  Consti- 
tutions, nor  by  the  sense  of  jus- 
tice which  underlies  those  consti- 
tutions. Neither  one  man  nor  a 
million  nor  ten  millions  have  any 
right  to  take  the  rent  of  that  land 
(which  is  the  same  as  taking  the 
ownership  of  the  laud)  until  they 
have  bought  the  land  and  paid  for 
it  or  otherwise  acquired  a  just  title 
to  it,  which  cannot  be  done  simply 
by  passing  a  law  that  the  benefi- 
cial ownership  of  land  shall  be 
forthwith  transferred  from  the 
present  holders  to  the  public.  Only 
a  military  situation  similar  to  that 
which  justified  the  emancipation 
of  the  slaves  without  compensation, 
could  justify  snch  an  emancipation 
of  the  land.'  The  single-tax  theory 
also  makes  a  mistake  in  thinking 
that  the  abolition  of  private  mo- 
nopoly in  land  is  all  that  is  neces- 
sary  to   solve  our  industrial  prob- 


lems. The  private  monopoly  of  fran- 
chises, and  the  private  monopoly  of 
capital  would  still  remain,  and  the 
single-tax  would  not  "free  labor," 
nor  even  lift  wages  permanently. 
No  matter  how  free  land  might  be, 
labor  could  not  successfully  com- 
pete in  the  production  of  cotton 
cloth  without  big  cotton-mills  and 
money,  nor  in  the  production  of 
steel  rails  without  costly  furnaces, 
rolling-mills,  etc.,  nor  in  transpor- 
tation, gas,  electric  light,  telephone 
service,  etc.,  vsrithout  franchises. 
To  make  even  agriculture  a  success 
takes  more  than  land, — it  takes 
buildings,  stock,  machinery,  capi- 
tal, and  knowledge.  Laboring  men 
would  show  the  same  inability  and 
disinclination  for  agriculture  that 
they  show  now;  they  would  still 
cluster  about  the  towns  and  cities 
and  press  into  manufactures  and 
commerce,  and  the  mill-owners  and 
franchise  lords  could  make  their 
terms  just  as  they  do  now  (perhaps 
even  lowering  wages  \yy  an  amount 
equal  to  the  temporary  drop  in 
rents  that  would  follow  the  single 
tax)  and  labor  would  be  under  the 
heel  of  capitalism  as  truly  as  it  is 
to-day.  Wall  Street  would  like 
nothing  better  than  the  single-tax, 
throwing  all  burdens  on  land  and 
leaving  their  stocks,  bonds,  mort- 
gages and  franchises  free. 

In  this  country  at  present  the 
private  ownership  of  land  is  not  as 
a  rule  so  centralized  or  dangerous 
a  form  of  monopoly  as  the  private 
ownership  of  street  railways,  tele- 
graphs, telephones,  railroads,  etc., 
or  the  private  ownership  of  govern- 
ment. It  does  not  corrupt  legisla- 
tion, or  debase  employees,  or  water 
stock,  or  issue  false  accounts,  or 
give  rebates  or  passes,  or  sustain 
lobbies,  or  control  elections,  or 
threaten  the  existence  of  free  insti- 
tutions, as  do  the  great  franchise 
monopolies  and  monopolies  of  com- 
bination for  the  control  of  indus- 
trial and  political  powers.  As  the 
soil  is  divided  now  in  this  country 
the  great  mass  of  land-owners  do 
not  belong  to  the  class  of  danger- 
ous monojMJlists.  The  single-tax 
would  be  a  blow  at  the  farmers 
and  home  owners  all  over  the  land, 
a  blow  at  the  friends  of  democracy 
and  progress.  It  is  not  well  to 
bombard  our  own  forces  in  order 


530 


APPENDIX   II. 


to  hit  a  few  aristocrats.  Neither  is 
it  fair  to  fire  at  one  class  of  aris- 
tocrats and  leave  a  worse  class 
alone.  Progressive  income  and  in- 
heritance taxes  hit  aristocrats  of 
every  sort, — land  magnates,  fran- 
chise lords,  princes  of  market  and 
factorj^— hit  them  fairly  and  justly, 
but  fly  over  the  heads  of  the  com- 
mon people — those  are  the  arrows 
with  which  to  make  war  for  de- 
mocracy. Direct  legislation,  mu- 
nicipal home-rule,  good  civil  ser- 
vice, progressive  taxation,  compul- 
sory arbitration,  profit  sharing  and 
co-operation,  publicity  of  corpora- 
tion, trust  and  combine  books  and 
accounts,  and  public  ownership  of 
the  great  franchise  monopolies  that 
have  their  hands  on  the  throat  of 
the  government  and  are  exacting 
enormous  tribute  from  the  people 
— these  are  the  things  that  will 
help  the  farmers  and  mechanics 
and  carry  us  toward  a  truer  de- 
mocracy and  a  more  Christian  in- 
dustry. We  must  not  forget,  how- 
ever, our  great  debt  to  the  single 
taxers  for  the  valuable  discussion 
they  have  awakened,  and  the  ear- 
nestness with  which  they  have 
argued  their  just  plea  against  land 
monopoly;  nor  should  we  overlook 
the  promising  fact  that  some  of  the 
best  of  these  earnest  reformers  have 
come  to  see  that  other  movements 
are  valuable  also,  and  to  advocate 
direct  legislation  and  the  public 
ownership  of  franchises. 

F.  Municipal  Ownership  in  Great 
Britain.  The  following  facts  from 
the  Municipal  Year  Book  of  the 
United  Kingdom  for  1899  are  of 
great  interest: 

"Uemarkable  activity  has  been  shown 
by  the  local  authorities  thruout  tiic 
country  In  promoting  Bills  for  the  next 
session  of  Parliament.  The  list  almost 
creates  a  record.  A  glance  through  the 
Bills  gives  a  further  indication  that  the 
local  uutliorities,  great  and  8mall,are  deter- 
mined to  secure  control,  wherever  possible, 
of  all  Tramways,  Electric  Lightim; 
Schemes,  Water  and  Gas  Supplies,  and 
other  common  necessities.  It  is  interest- 
ing to  note  that  an  unusually  largo 
number  of  Urban  District  Councils  are 
proposing  to  buy  out  the  local  gas  and 
water  comiianies  before  the  capital  of 
these  undertakings  is  unduly  swollen  by 
the  needs  of  an  increasing  population  " 
(p.    1.) 

Electric  Light.— The  supply  of  elec- 
tricity for  light  and  power  is  fast  be- 
coming one  of   the    leading    municipal 

Industries     In     the     country,    (p.     ^3) 


"Some  of  the  oldest  electric  undertak- 
ings are  under  municipal  control,  and 
municipal  works  in  existence  or  in  prog- 
ress outnumber  the  other  by  more  than 
two  to  one.  (p.  424).  At  the  end  of 
1898,  1.38  works  were  in  operation— 
81  under  municipal  management 
ajpd  57  In  private  hands.  There 
were  63  installations  being  laid 
down— 51  by  public  bodies  and  12  by 
companies;  while  public  authorities  held 
104  provisional  orders  and  presumably 
had  works  in  contemplation,  and  11 
were  held  by  companies.  I'rivate  sup- 
ply of  electricity  has,  therefore,  almost 
come  to  a  standstill,  and  will  have  to 
confine  its  progress  to  the  area  already 
under  Its  control.  This  was  illustrated 
in  last  year's  applications  for  provisional 
orders.  There  were  42  applications  by 
public  bodies;  every  one  was  granted. 
There  were  13  applications  by  compa- 
nies, and  only  5  were  granted,  (p.  424). 
Over  70  applications  for  provisional  or- 
ders for  electric  lighting  have  already 
been  made  by  local  authorities  for  1809, 
and  several  towns  are  proceeding  by 
way  of  bills  to  buy  out  existing  com- 
panies."   (pp.  1  and  426). 

"Municipal  Corporations  have  always 
one  great  advantage  over  Electric  Light- 
ing Companies:  they  can  become  their 
own  best  customers;  they  can  light 
their  streets  and  their  public  buildings 
with  electricity.  This  privilege  has.  ho 
doubt,  enabled  them  In  many  cases  to 
establish  a  paying  business  soon,  but 
It  is  not  necessary  to  success.  Hull  Cor- 
poration, for  instance,  supplying  only 
currents  to  private  lamps,  had  a  net 
surplus  in  its  second  year  of  £1,053,  and 
in  its  third  year  of  £1,263.  A  f\irther 
advantage  in  favor  of  municipalities  Is 
that  they  can  borrow  capital  at  excep- 
tionally low  rates  of  interest— 2V^  and  3 
per  cent.  On  the  whole,  municipal  en- 
terprises have  been  very  successful." 
(p.    425). 

Tramways. — "There  are  11  local  au- 
thorities applying  for  Provisional  Orders 
to  construct  and  work  tramways,  and 
It  is  Interesting  to  note  that  half  of 
tliese  are  Urban  District  Coimcils;  27 
Tramway  Bills  are  being  promoted,  and 
in  the  majority  of  cases  the  powers 
sought  for  are  for  the  conversion  of 
systems  and  extensions.  A  noticeable 
feature  in  these  Tramway  Bills  is  the 
desire  of  the  large  Corporations,  who 
own  tramways  to  secure  working  pow- 
ers in  outside  districts,  to  buy  out  ex- 
isting companies,  if  necessary,  and  to 
co-operate  with  smaller  local  authori- 
ties. The  Darwen  Corporation  proposes 
to  amalgamate  with  Blackburn  for 
tramway  purposes,  and  the  Bill  pro- 
moted by  that  authority  provides  for 
the  establishment  of  a  Joint  Board." 
(pp.    1,    2). 

"No  branch  of  municipal  enterprise 
has  made  such  rapid  progress  during 
the  past  year  as  that  relating  to  tram- 
ways. Almost  without  exception  every 
large  town  has  completely  municipal- 
ized the  tramways  or  is  about  to  do  so. 
It  is  now  recognized  that  no  tramway 
service  can  be  of  the  fullest  benefit  to 
the  people,  unless  it  is  operated,  as  well 
as  owned,  by  the  municipality.  Every 
town  is  also  seeking  to  introduce  elec- 
tric or  other  mechanical  traction.  As 
In   almost   every    instance     corporations 


THE  LATEST  NOTES. 


531 


own  the  electric  tightiug  supply,  the 
introduction  of  electric  traction  will 
prove  of  great  advantage  both  to  the 
lighting  and  tramway  departments,  en- 
abling both  to  lower  their  charges  (i). 
439).  In  January  of  this  year  the  Lon- 
don County  Council  took  over  the  un- 
dertaking of  the  London  Tramway  Com- 
pany—25  miles  of  tramway  track  in 
South  London.  The  undertakings  of 
other  companies  of  London  will  fall  into 
the  hands  of  the  Council  in  a  few  years, 
and  in  the  meantime,  extension  schemes 
and  new  connections  are  being  plann<(l. 
In  cases  where  the  leases  of  tramway 
companies  have  some  years  to  run,  the 
Councils  in  many  parts  of  the  country 
are  buying  the  undertakings.  *  •  •  * 
The  Liverpool  Tramways  Company  had 
still  IS  years  to  run  when  the  entire 
concern  was  bought  out  last  year  by 
the  Liverpool  Corporation  at  a  price  of 
f-j67.375,  representing  an  amount  of  £12 
los.  for  each  ilO  share.  *  *  *  Man- 
cliester  has  also  decided  to  take  tram- 
ways into  its  own  hands  at  the  expi- 
ration of  the   leases  in  1901."    (p.  442). 

Great  as  has  been  the  municipal  tram- 
way movement  in  the  last  three  years, 
"•■ven  greater  activity  is  being  shown 
by  municipal  authorities  thruout  the 
country  in  tiie  promotion  of  schemes 
for  the  session  1899.  The  authorities 
applying  for  provisional  orders  to  con- 
struct and  work  electric  tramways  are: 

Audenstraw   Urban  District. 

Barking  Town  Urban  District. 

Clayton   (Yorks)   Urban   District. 

Devonport   Corporation. 

Eccles   Corporation. 

liford   Urban  District. 

Ilkeston   Corporation. 

Matlock  L'rban   District. 

Queensbury   Urban  District. 

Reading  Corporation. 

Southport    Corporation. 

"In  addition  to  these  bodies  the  Cor- 
porations of  Aberdeen,  Blackpool,  and 
Halifax  are  applying  for  orders  to  con- 
struct and  work  additional  tramways. 

"The.    following   towns   and     districts 
are    promoting     Bills    to    construct    and 
work  tramways  to  use  electric  traction, 
or  to  extend  existing  systems:— 
Ayr,  Leeds, 

Belfast,  Mancliester, 

Barking   Town.  Moss  Side, 

Blackpool,  Newcastle. 

Birkenhead,  Nottingham, 

Bradford,  Oldham. 

Darwen,  Rhondda, 

Derby,  Salford, 

Dundee.  Stockport, 

Edinburgh,  Stretford, 

Glasgow,  Sunderland, 

Great   Yarmouth,       Wallasey, 
Hastings,  AVithington, 

Kirkaldy,  Wolverhampton. 

"Several  of  the  above  towns,  includ- 
ing Manchester,  Bradford,  Glasgow, 
Leeds,  Oldham,  Wolverhampton,  etc.. 
are  seeking  power  to  construct  and 
work  tramways  outside  their  own  bor- 
oughs, and  in  some  instances  to  pur- 
chase existing  undertakings.  Provision 
is  made  in  some  of  the  bills  for  large 
towns  to  supply  the  outside  districts 
with  electrical  energy  to  work  tram- 
ways."   (p.   441). 

Gas. — "Over  two  hundred  municipal 
authorities  in  the  United  Kingdom  sup- 


ply gas.  More  than  that  number  of 
urban  communities  have  municipal  sup- 
plies, as  in  a  number  of  cases  one  au- 
thority supplies  several  towns  and  su- 
burban districts.  Nearly  all  the  large 
towns  have  the  gas  supply  in  their  own 
hands;  the  more  notable  exceptions  are 
London.  Liverpool,  Dublin,  West  Ham, 
Croydon  anl  Newcastle,  (p.  403).  Many 
gas  undertakings  owned  by  private  com- 
panies will  shortly  pass  into  the  hands 
of  local  authorities.  Bills  are  being 
promoted  by  16  towns  and  districts  to 
acquire  rights  and  works."    (p.  2.) 

Water. — "The  supply  of  water  is  a 
branch  of  public  service  which  has  come 
under  the  control  of  municipalities  to 
the  greatest  extent.  •  *  •  Of  the  141 
boroughs  other  than  county  boroughs 
in  England  and  Wales,  139  have  mu- 
nicipal supplies.  Out  of  766  urban  dis- 
tricts just  about  half  have  municipal 
water.  •  *  *  The  only  "great  towns" 
in  England  whicli  have  not  a  municipal 
supply  are  London,  Bristol,  Newcastle- 
on-Tyne.  Norwich,  Gateshead,  Ports- 
mouth and  West  Ham.  Including  the 
great  towns,  there  are  64  county  bor- 
oughs in  England  and  Wales,  and  in 
all  but  19,  the  water  supply  is  under 
public  control.  In  all  the  large  towns 
of  Scotland — Glasgow,  Edinburgh,  Dun- 
dee, Aberdeen,  Leith,  Greenock,  Pais- 
ley, Port  Glasgow  and  Perth— the  water 
supply  is  also  in  public  hands.  In  Ire- 
land. Dublin 'has  a  municipal  supply; 
Belfast's  supply  is  under  a  commission 
partly  elective,  and  Cork  has  a  munici- 
pal service.  With  the  exceptions  above 
mentioned,  the  towns  without  munici- 
pal supplies  are,  in  the  majority  of 
cases,  small  or  old  towns."  (p.  373). 
Parliament  will  have  before  it  this  year 
a  large  number  of  Important  water 
schemes.  The  most  comprehensive  is 
that  brotight  forward  by  the  London 
County  Council,  which  once  more  pro- 
poses to  buy  out  the  8  metropolitan 
water  companies."    (p.   2.). 

Markets  and  Slaughterhouses. — Lists  are 
given  of  the  "principal"  municipalities 
owning  slaughterhouses  and  markets; 
the  former  lists  contains  50  municipali- 
ties and  the  market  list  117. 

2.  Growth  of  public  ownership, 
see  The  Outlook  for  Augnst,  1899, 
and  Progress  for  December,  1899. 

G.  In  his  Political  Economy,  Bk. 
V,  Chap.  II,  paragraph  11,  John 
Stuart  Mill,  after  stating-  that  com- 
petition does  not  really  take  place 
among-  gas  and  water  companies, 
says,  "the  charge  for  services  which 
cannot  be  dispensed  with,  is,  in  sub- 
stance, quite  as  much  compulsory 
taxation  as  if  imposed  by  law." 

H.  Dr.  Hale.  In  a  letter  just  re- 
ceived (Dec.  16,  '99),  from  "Boston's 
most  eminent  citizen,"  Rev.  Dr. 
Edward  Everett  Hale,  the  following- 
points  are  made  respecting  public 
ownership: 


632 


APPENDIX   II. 


"I  am  an  old  New  Englander, — one  of 
those  who  believe  that  the  fathers 
'builded  better  than  they  knew':  (1.) 
The  fathers  establlsht  common  schools 
for  everybody.  They  would  never  have 
dreamed  of  having  anybody  but  the 
town  own  the  school-house.  (2.)  The 
fathers  establlsht  bridges  and  roads  for 
everybody.  They  imposed  no  taxes 
when  a  man  crossed  the  bridge  over  the 
canal  at  the  North  End.  When  they  did 
establish  toll  bridges  and  turnpikes,  the 
whole  thing  was  exceptional;  it  broke 
down  entirely,  and  the  public  has  been 
obliged  to  accept  those  turnpikes  and 
bridges  and  make  them  a  part  of  the 
public  property.  (3.)  When  it  came  to 
water,  which  everybody  needs,  it  very 
soon  proved  that  private  corporations 
for  the  distribution  of  water  were  a 
mistake,  and  that  the  public  must  own 
the  water  supply  and  administer  it. 
(4.)  The  same  rule  applies  in  the  mat- 
ter of  the  post,  which  is  of  service  to 
everybody.  (5.)  The  same  rule  applies 
in  the  matter  of  lighthouses,  which  are 
of  service  to  everybody.  (6.)  There  is 
no  reason  whatever  known  to  me  why 
the  stone  pavement  of  a  street  should 
belong  to  the  public,  and  that  part  of 
the  pavement  which  is  made  up  of  iron 
should  belong  to  some  favored  corpora- 
tion. I  have  never  seen  any  pretense 
at  any  Justification  of  it  on   principle. 

(7.)  This  means,  in  general,  that  what- 
ever is  intended  for  the  good  of  everybody 
is  better  in  the  hands  of  the  puhlic." 

I.  Rev.  Dr.  Washington  Gladden, 
a  famous  minister  and  one  of  the 
foremost  leaders  of  thought,  says: 

"There  is  one  class  of  capitalistic  ag- 
gregations, based  on  monopoly,  against 
which  popular  indignation  is  likely  to 
be  kindled  even  sooner  than  against  the 
so-called  trusts.  I  refer  to  those  which 
are  founded  on  municipal  franchises. 
Most  of  the  companies  owning  these 
franchises  have  issued  capital  far  in  ex- 
cess of  their  actual  investment,  have 
disposed  of  the  stock  thus  Issued  and 
ai-e  charging  enuf  for  the  services  ren- 
dered the  public  to  pay  the  dividends 
on  all  this  watered  stock.  If  they  were 
content  with  a  fair  return  on  what  the 
plant  has  actually  cost  them,  the  price 
of  the  service  could  be  greatly  reduced. 
A  fair  return  on  their  actual  invest- 
ment nobody  grudges  them,  but  the  priv- 
ilege of  taxing  the  community  to  pay 
■dividends  on  two  or  three  times  as  much 
money  as  they  have  invested  is  going 
to  be  questioned  one  of  these  days. 
When  the  reckoning  day  comes  to  our 
monopolies  some  sharp  inquisition  may 
be  made  into  the  fundamental  equities 
of  many  of  these  institutions.  Vested 
rights  will  be  respected,  I  have  no 
•doubt;  but  vested  wrongs  may  be  called 
to  account."  And  again:  "Shall  we  be 
able,  by  purely  moral  agencies,  by 
teaching,  preaching,  witnessing,  suffer- 
ing for  righteousness'  sake,  to  arrest 
the  spread  of  the  mercantilism  which 
now  ravages  society,  corrupting  politics, 
tainting  education,  defiling  religion? 
One  ought  not  to  be  hopeless  who  fights 
with  such  weapons,  for  they  are  mighty 
to  the  pulling  down  of  strongholds. 
We  may  be  very  certain  that  there  can 


be  no  permanent  victory  over  these  de- 
structive forces  until  there  is  a  radical 
change  in  the  thoughts  of  men  con- 
cerning the  relative  values  of  material 
and  spiritual  things.  Our  final  resort 
must  always  be  to  the  weapons  that 
are  not  carnal.  Yet  the  children  of 
the  light  must  be  wise  enuf  in  their 
generation  to  seek  the  aid  of  the  best 
environment.  That  some  methods  of  in- 
dustrial organization  are  more  favorable 
than  others  to  the  development  of  char- 
acter is  altogether  probable.  Not  many 
students  of  society  in  these  days  would 
hesitate  to  say  that  the  system  of 
slave  labor  or  the  feudal  system  was, 
on  the  whole,  unfavorable  to  morality; 
to  go  back  to  either  of  these  would 
certainly  involve  a  serious  moral  loss. 
The  moral  and  spiritual  forces  would 
be  at  a  greater  disadvantage  under 
either  of  those  Systems  than  they  are 
now.  In  point  of  fact,  we  have  found 
that  the  present  system,  with  all  its 
demoralizing  influences,  produces  better 
men  than  were  produced  under  feudal- 
ism or  slavery.  The  moral  and  spiritual 
forces  have,  then,  been  assisted  by 
changes  in  the  forms  of  social  organiza- 
tion; and  what  has  been  may  be.  It 
is  certainly  possible  that  some  modifica- 
tion of  the  existing  industrial  order 
would  give  freer  play  to  the  moral 
forces,  and  check  the  influences  which 
tend  to  humanize  men  and  undermine 
the  State.  We  might  easily  extend  the 
area  of  co-operation  thru  the  state  or 
the  municipality;  we  might  have  more 
things  in  common;  we  might  thus  greatly 
limit  the  action  of  the  principle  of  strife, 
and  fix  the  thought  of  men  more  upon 
the  things  which  they  enjoy  together, 
and  less  upon  those  for  the  possession 
of  which  they  are  contending.  We  do 
already  co-operate  in  many  things;  we 
might  co-operate  in  many  more.  There 
seem  to  be  certain  classes  of  industries 
to  which  the  principle  of  common  owner- 
ship naturally  applies,  and  it  is  precisely 
these  industries  which  arc  note  employed 
most  mischievously  for  the  a^ggrandizement 
of  the  few  at  the  expense  of  the'  many, 
for  the  building  up  of  an  arrogant  plu- 
tocracy, for  the  enthronement  of  false 
ideals  of  success,  and  for  the  corruption 
of  public  virtue." 

J.  Hon.  S.  M.  Jones,  Mayor  of 
Toledo,  proposes  that  the  veto 
power  be  talien  away  from  the 
mayor  so  that  he  may  become  pure- 
ly an  adminstrative  officer,  direct 
legislation,  or  the  veto  hx  the  peo- 
ple, taking  the  place  of  the  Mayor's 
veto.  He  was  nominated  for  Gov- 
ernor of  Ohio  by  popular  petition 
independent  of  party  action,  and 
received  107,000  votes. 

K.  Professor  Bemis,  in  his  Study 
on  Municipal  Monopolies  issued  by 
the  Social  Reform  Union,  says: 

"Competition  as  a  permanent  factor 
in  these  vitally  necessary  undertakings 
(lighting,  transit,  etc.)  being  out  of  the 
question,  and  a  monopoly  having  every- 
where an  irresistible  tendency  to  extor- 


THE   LATEST   NOTES. 


633 


tlon  or  poor  service  If  not  controlled 
In  the  interests  of  the  people,  there 
remain  but  two  possible  ways  of  giving 
the  people  their  proper  dnes:  public 
regulation  thru  state  commissioners, 
city  councils,  etc.,  on  the  one  hand,  and 
regulation  thru  state  commissions, 
on   the  other." 

The  Professor  then  shows  that  regu- 
lation even  in  Massachusetts  has  secur- 
ed only  the  most  insignificant  reductions 
of  rates.  Only  14  companies  ordered  to 
reduce  gas  rates  since  the  creation  of 
the  board  in  18&4,  and  no  orders  for  re- 
duction since  March.  '96  (to  Dec.  '99). 
For  electric  lights  there  have  been  but 
two  orders  for  reduction,  and  in  both 
instances  the  companies  were  small. 
There  have  been  only  two  or  three  cases 
of  reduction  of  street  railway  fares,  and 
no  reduction  below  5  cents.  He  em- 
phasizes the  failure  of  regulation  in 
Mass.  to  secure  publicity,  the  most  vital 
facts  collected  by  the  commissioners 
relating  to  salaries,  repairs,  extensions, 
wages  and  cost  of  production  being 
withheld  from  the  public.  He  says:  "I 
believe  if  is  much  harder  to  regulate 
private  ownerships  than  it  is  to  operate 
under  public  ownership." 

The  main  objections  to  public  owner- 
ship relate  to  the  spoils  system  and 
the  possible  hesitation  on  the  part  of 
public  bodies  in  introducing  the  latest 
Improvements  in  machinery  and  meth- 
ods. "These  dangers  have  been  entirelv 
overcome  in  England,  where  the  oper- 
ating expenses  In  electric  light,  gas  and 
street  railways  are  found  to  average 
lower  in  public  than  in  private  under- 
takings  under  similar  conditions." 

The  change  to  municipal  owner- 
ship will  produce  the  conditions 
most  likely  to  put  an  end  to  the 
spoils  system. 

Under  public  ownership  a  minis- 
ter or  lawyer,  or  editor  or  business 
man  can  attack  the  spoils  sj'stem 
or  other  possible  abuse  of  govern- 
mental management  with  far  less 
danger  than  he  can  attack  the 
abuses  of  the  monopolies  owned  by 
the  rich  and  influential  citizens  of 
his  city,  whose  personal  profits  are 
injured  by  the  latter  sort  of  attack, 
whereas  under  public  ownership 
the  interest  of  this  class  would  be 
with  the  attack  iipon  abuses.  The 
financial  interests  of  the  rich  and 
Influential  are  with  good  govern- 
ment under  a  system  of  public 
ownership  and  largelj^  against  good 
government  under  private  owner- 
ship. 

For  another  reason  abuses  under 
public  ownership  ne  likely  to  be 
more  easily  remedied  than  the 
abuses  of  private  monopoly.  Under 
public  ownership  if  a  city  council 
is  bad  this  year  we  may  correct 
the  trouble  next  year.  But  under 
private  ownership  as  at  present  a 


bad  city  council  maj-  make  a  30- 
year  contract  or  a  50-year  contract, 
and  then  what  is  to  be  done? 

(The  courts  of  the  future  may  hold 
void  a  contract  made  by  a  legisla- 
tive body  in  manifest  antagonism 
to  the  interests  of  the  public  or  in 
fraud  of  the  people's  rights,  just  as 
they  would  hold  void  a  fraudulent 
contract  made  by  an  individual 
agent.  E\en  this,  however,  would 
only  transfer  the  battle  to  the 
courts,  and  at  best  there  would  be 
a  wide  margin  between  really  fair 
legislation  and  legislation  in  which 
the  crookedness  was  clear  enuf  to 
cause  it  to  be  set  aside.  Already 
the  courts  hold  that  a  city  cannot 
make  a  contract  with  a  street  rail- 
way or  other  company  fixing  rates 
for  a  term  of  years.  The  power  to 
reduce  rates  is  part  of  the  sovereign 
power  of  the  state  and  no  city  can 
make  a  contract  that  would  prevent 
the  exercise  of  that  right.) 

L.  Dr.  Lyman  Abbott,  the  leading 
religious  editor  of  America,  says: 
"The  sooner  our  cities  own  the  lines 
of  railroads,  the  better  both  for  the 
convenience  of  the  people  and  the 
purity  of  our  municipal  govern- 
ments." 

If.  ifnnopoUstic  Objections  and 
Objectors. — if?-.  Robert  P.  Portei\  who 
w^as  superintendent  of  the  10th  cen- 
sus, says: 

'•The  value  of  the  lines  of  railroads 
which  Dr.  Abbott  thinks  we  should  at 
once  own  will  in  1900  be  in  the  neigh- 
borhood of  sixteen  hundred  millions  of 
dollars  ($1,600,000,000),  add  to  this  an- 
other one  thousand  million  of  dollars 
($1,000,CHX>,000)  for  municipal  gas  works, 
and  we  have  a  total  of  two  thousand 
six  hundred  million  of  dollars  ($2,600,- 
000,000).  If  state  constitutional  barriers 
could  be  overcome  to  accomplish  this, 
the  municipal  indebtedness  of  the  coun- 
try would  be  more  than  quadrupled,  or 
increased  from  eight  hundred  million 
dollars  ($800,000,000)  to  three  thousand 
four  hundred  millions  of  dollars  ($3,400,- 
000,000),  which  is  simply  a  preposterous 
proposition." 

Mr.  Porter  does  not  appear  to  be 
able  to  imagine  that  a  city  should 
pay  for  a  gas  plant  or  street  rail- 
way. He  does  not  tell  us  why 
it  is  any  worse  for  a  city  to  issue 
bonds  or  other  securities  than  for 
a  private  company,  nor  does  he  in- 
form us  that  large  portions  of  the 
values  he  quotes  are  fictitious,  and 
that  we  expect  to  squeeze  the  wind 


534 


APPENDIX   II. 


and  water  out  of  them  hy  public- 
ity of  accounts,  reduction  of  rates 
and  taxation  of  face  and  market 
values  before  their  purchase  by  the 
public. 

Air.  Porter  is  intensely  antago- 
nistic to  public  ownership,  and  in 
his  latest  effusion,  the  address  to 
the  Syracuse  Convention  of  the 
Leag-ue  of  American  Municipalities, 
he  gives  us  11  columns  of  opposition 
without  a  single  fact  relevant  to  his 
conclusions.  There  are  a  few  ad- 
verse statements  that  may  look 
like  facts  to  those  unacquainted 
with  the  matter,  but  the  trouble 
with  them  is  that  they  are  not  true. 
Mr.  Porter  does  not  seem  to  have 
any  affinity  for  facts.  He  does  not 
even  attempt  to  answer  the  thirty- 
odd  charges  brought  against  pri- 
vate monopoly,  its  inflated  capital, 
watered  stock,  excessive  rates,  tax- 
ing the  community  to  pay  divi- 
dends on  two  or  three  times  the 
real  investment,  its  anti-democracy 
and  congestion  of  Avealth,  its 
strikes  and  lockouts,  its  defiance 
of  law,  its  corruption  of  govern- 
ment, its  antagonism  to  i..e  public 
interest,  etc.,  etc.  He  ignores  these 
matters.  Thru  almost  the  whole 
address  he  ignores  all  but  the  low- 
est financial  considerations,  and 
even  upon  the  financial  plain  he 
ignores  the  important  facts  and 
misstates  the  few  unimportant  ones 
he  cites. 

He  says:  '"In  no  .single  instance  can 
the  municipal  working  of  tramways  be 
demonstrated  to  be  a  commercial  suc- 
cess." He  evidently  has  not  seen  the 
Glasgow  reports  nor  the  British  Mu- 
nicipal Year  Book,  which  show  such 
great  successes  that  towns  and  cities 
by  the  dozen  are  going  over  to  public 
ownership   and  operation   of   tramways. 

Again  he  says:  "Municipal  ownership 
has  not  made  anything  like  the  head- 
way in  the  United  Kingdom  which 
many  would  have  us  believe.  Some  ac- 
counts would  seem  to  indicate  that  Eng- 
land has  municipalized  such  undertak- 
ings as  water,  gas,  electric  lighting, 
and  street  railways  to  a  much  greater 
extent  than  the  facts  warrant.  Should 
we  consider  the  four  important  branch- 
es of  service— the  supply  of  water,  gas. 
electric  light  and  street  railways— to- 
gether, it  would  be  safe  to  say  that 
honors  in  favor  of  the  municipalization 
of  these  undertakings  would  be  about 
equally   divided   in   the   two   countries." 

To  understand  how  utterly  false 
this  is,  the  reader  has  but  to  com- 
pare the  citations  above  made  from 
the   English   Municipal   Year  Book 


Avith  the  .statistics  of  municipal 
ownership  in  the  United  States  re- 
corded in  Chap.  I.  Compare  also 
the  following  statements  of  Mr. 
Porter  four  columns  further  along 
in  the  very  same  address: 

"The  old  aspect  of  municipal  admin- 
i.stratlon  dealt  with  the  paving  and 
lighting  of  streets;  the  supply  of  water; 
tlie  construction  of  sewers;  in  maintain- 
ing order  and  occasionally  in  the  es- 
tablishment of  parks.  The  new  phase 
of  municipal  administration,  in  its  most 
ambitious  form,  aims  to  deal  with  every 
question  that  directly  or  indirectly  af- 
fects tlie  life  of  the  people.  Carried  to 
the  extent  which  it  has  been  in  some 
British  cities,  it  is  in  fact  municipal 
socialism.  The  new  school  of  mxmicl- 
pal  administratou  in  England  enters  in- 
to the  life  of  the  people.  It  not  only 
takes  upon  itself  the  unprofitable  side 
of  the  local  budgets,  but  argues  very 
plausibly  that  a  well-governed  munici- 
pality can  afford  to  give  no  privileges 
by  which  corporations  may  enrich  them- 
selves at  the  expense  of  the  community; 
that  such  profits  belong  to  the  commu- 
nity at  large,  or  should  be  used  to  pro- 
mote the  general  welfare.  Beginning 
with  the  mimlcipalizatlon  of  gas  and 
water,  the  idea  has  extended  to  tram- 
ways, markets,  baths,  libraries,  picture 
galleries,  technical  schools,  artisans' 
dwellings,  cricket  fields,  football 
grounds,  tenuis  courts,  gymnasia  for 
girls  as  well  as  boys,  regulation  of  re- 
freshment tariffs,  free  chairs  in  the 
I)arks,  free  music,  and,  last  tho  not 
least,  It  is  proposed  to  municipalize  the 
ginshops  and   j)ublic  houses." 

♦  ♦  *  *  "The  real,  vital,  debatable 
question,  which  the  growth  of  the  mu- 
nicipal idea  or  municipal  spirit  is  forc- 
ing to  the  front,  is:  How  far  can  mu- 
niclpalltes  go  in  this  direction  without 
undermining  the  whole  fabric  of  free 
i-ompetltlon?  In  thus  becoming  its  own 
builder,  its  own  engineer.  Its  own  manu- 
facturer, does  a  municipality  enter  too 
nmch  into  direct  competition  with  pri- 
vate industries?  Does  it  undertake 
work  which  individuals  are  at  least 
equally  able  to  perform  If  this  be  so, 
is  there  not  danger  of  those  of  us  who 
.■ipplaud  the  tramway  enterprise  of  Glas- 
gow, the  real  estate  scheme  of  Bir- 
niljigham,  the  municipal  tenements  of 
liiverpool,  the  hydraulic  power  and  ship 
•  anal  venture  of  Manchester,  the  aboli- 
tion of  slums  in  Bradford,  and  the 
grand  municipal  achievement  of  Leeds, 
ultimately  finding  enterprises  other  than 
tliose  in  the  present  catalogue  taken  up 
by  municipalities." 

In  liicid  intervals,  this  defender 
of  private  monopoly  admits  the 
benefits  of  present  municipalization 
even  in  its  most  advanced  forms, 
but  he  fears  its  extension  and  so 
opposes  the  Avhole  sj'stem  except  in 
said  intei'vals. 

Mr.  Porter's  "argument"  con- 
densed amounts  to  this:  It  is  good 
for  the  people  to  own  some  things, 


THE   LATEST   NOTES. 


535 


but  it's  bad  for  them  to  own  those 
things  because  it  may  tempt  them 
to  own  other  things  which  Mr. 
Poi-ter  thinks  they  ought  not  to 
own  because  it  would  undermine 
free  competition.  It  is  doubtless 
good  for  .^ou  to  eat  beef,  but 
you  must  not  do  so  else  you  may 
get  into  the  habit  of  eating  meat 
to  such  an  extent  that  you  may 
be  tempted  to  eat  mutton,  and  so 
undermine  or  destroy  the  excellent 
butting  processes  that  keep  lUe  he- 
sheep  in  active  health  and  make 
the  \vool  grow. 

X.  The  Referendum  in  Boston, 
Dec.  '09.  Among  the  many  benefits 
of  direct  legislation,  there  is  reason 
to  lay  special  stress  on  its  ten- 
dency to  improve  the  conditions  of 
labor,  and  to  destroy  the  rule  of 
monopoly.  These  points  have  been 
enforced  by  the  advocates  of  direct 
legislation  both  by  history  and  phi- 
losophy— they  have  been  true  in 
fact,  and  they  must  be  true  in  the 
nature  of  things — and  now  we  have 
a  new  and  brilliant  illustration  of 
the  strength  of  the  referendum  in 
the  directions  just  indicated.  The 
people  of  Boston  have  just  voted 
overwhelmingly  to  adopt  the  8- 
hour  day  for  all  city  laborers,  and 
to  refuse  the  street  railway  mo- 
nopoly the  privilege  of  replacing  its 
tracks  on  Boylston  and  Tremont 
streets  in  the  heart  of  the  city. 
The  legislature  gave  its  consent, 
but  the  people  turned  down  the 
monopoly.     Here  are  the  votes: 

On  the  8-hour  question: 
Yes,  62,625;   Ko.   14,518. 

On  relaying  the  car-tracks: 
Yes,  26,254;    No,  51,585. 

The  track  affair  shows  that  altho 
a  giant  monopoh^  may  manage  the 
leg-islature  and  control  the  press, 
it  is  not  able  to  bend  the  people  to 
its  will.  It  is  only  a  little  while 
since  the  tracks  on  Tremont  and 
Bojlston  streets  have  been  taken 
up.  These  streets  used  to  be  crowd- 
ed to  stagnation  with  cars  and 
other  vehicles.  The  subway  was 
voted  by  the  people  and  built  on 
purpose  to  relieve  this  congestion. 
It  was  ))art  of  the  plan  to  take 
up  the  surface  ti^acks  in  the  heart 
of  the  city.  The  company  was  re- 
quired to  do  this.  We  now  go  in 
5  or  10  minutes  the  distance  that 
used  frequently  to  require  20  or  P.O 


minutes,  and  carriages  travel  with 
reasonable  speed  on  the  sti-eets 
where  the  tracks  used  to  be.  The 
subway  is  far  from  being  use<l  up 
to  its  capacity,  yet  the  Boston  Ele- 
vated Co.,  which  controls  the  street 
railways,  wishes  to  relay  the  tracks 
on  Boylston  and  Tremont  streets. 
The  people  vote  a  subway  to  re- 
lieve the  congestion  in  the  heart 
of  the  city  and  get  rid  of  the  tracks 
about  the  Common,  and  a  few 
months  after  it  is  done  the  com- 
])any  asks  to  be  allowed  to  relay 
the  surface  tracks.  The  legislature 
was  agreeable;  Avould  have  passed 
the  act  without  a  referendum  it  is 
said  if  Governor  Wolcott  had  not 
made  it  imderstood  that  a  bill  with- 
out a  referendum  would  be  vetoed. 
The  papers  Mere  filled  with  the  com- 
pany's argument^s;  only  one  I  be- 
lieve took  ground  against  the  re- 
laying and  even  it  was  loaded  with 
instructions  to  "Vote  Yes"  on  the 
track  question,  put  in  large  tyi>e 
on  the  front  page  and  paid  for  as 
advertising  matter.  Yet  in  spite  of 
all  the  monopoly  could  do.  it  was 
sTiowed  under  by  the  jjeople. 

The  D.  L.  Eecord  for  Dec.,  1899, 
contains  accounts  of  various  refer- 
eiulal  votings  in  16  states  at  the 
November  elections.  The  data  fur- 
nish new  proof  of  the  fulness,  in- 
telligence, public  spirit  and  non- 
l)artisanship  of  ix>pular  votes  on 
measures. 

In  the  Ohio  campaign  four  par- 
tics  had  D.  L.  planks  in  their  plat- 
forms.    Their  vote  was  as  follows: 

Democratic 368,176 

Non-partisan  (Jones'  vote) .   10,6,721 

Union  Reform    7,799 

Socialist-Labor 2,4.'?9 

Total 485,135 

The  other  two  ]iai-ties  who  did 
not  oppose  D.  L.,  but  who  did  not 
say  they  favored  it,  are: 

Republican 417,199 

Prohibition 5,825 

423,024 
Majority  for  D.  L.  platforms  62,111 
The  mixture  of  issues  make  it 
inqii-obable  that  all  the  485,135 
voters  were  in  sympathy  with  the 
D.  L.  plank  in  their  platforms.  The 
Union  Reform  Partj'  made  D.  L.  its 
sole  issue,  and  Mayor  Jones  made 


536 


APPENDIX   II. 


it  one  of  his  principal  issues,  if  not 
his  very  chief  issue,  and  anj^  man 
sensible  enuf  to  vote  for  Jones 
is  probably  sensible  enough  to  be- 
lieve in  the  referendum,  but  we 
cannot  so  surely  count  on  all  the 
Democrats  and  Socialists.  On  the 
other  hand,  however,  a  great  num- 
ber of  Republicans  and  Prohibi- 
tionists are  known  to  favor  Direct 
Legislation,  so  that  it  does  not 
seem  unreasonable  to  conclude  that 
this  vote  in  connection  witk  other 
known  facts  indicates  a  large  ma- 
jority in  Ohio  in  favor  of  Direct 
Legislation. 

O.    The  Merit  Bystem. 

The  change  In  public  temper  Is  plainly 
Indicated  in  the  view  of  municipal  man- 
agement which  Is  constantly  gaining 
ground,  that  the  city  business  is  not 
political,  but  the  administration  of  a 
corporation  for  the  benefit  of  those  who 
compose  it.  Here  are  two  examples 
from  the  last  election  which  are  in- 
structive. San  Francisco  has  a  new 
charter  which  provides  for  the  merit 
system  In  making  municipal  appoint- 
ments, and  it  Is  worth  notice  that  at 
the  time  the  new  charter  was  just  going 
into  effect  the  election  gave  an  oppor- 
tunity to  test  the  standing  of  the  two 
parties  on  the  principle  involved.  It  came 
in  the  form  of  a  question  whether  city 
affairs  should  be  managed  on  a  business 
basis  or  as  an  adjunct  of  national  poll- 
tics.  The  Democrats  stood  for  the  for- 
mer proposition,  and  won.  They  declar- 
ed that  it  should  be  the  party  policy 
"to  confine  Its  municipal  platforms  and 
its  deliberations  in  municipal  conven- 
tions to  the  discussion  of  the  princi- 
ples of  Democracy  solely  in  so  far  as 
they  apply  to  municipal  affairs."  The 
Republicans  urged  the  election  of  their 
candidate  because  the  election  of  a  Dem- 
ocratic mayor  would  be  a  rebuke  to  the 
Republican  national  Administration. 

In  Baltimore,  which  also  elected  a 
Democratic  mayor,  the  successful  can- 
didate has  declared  his  position  on  thi- 
civil  service  promptly  and  unmistaka- 
ably.  He  says  that  the  police,  fire  and 
school  departments  shall  be  put  on  the 
merit  system,  "If  it  is  possible  for  me 
to  bring  It  about,"  and  adds  that  lie 
will  guarantee  that  there  shall  not  bo 
a  school  commissioner  of  his  appoini- 
ment  who  "can  be  touched  by  the  uoli- 
tlclans  on  either  side."  (Quoted  from 
the  Hartford  Times  by  the  Boston 
Transcript,   Nov.  2.%   '99.) 

P.    Civil  Bervicr  and  Separation  of  Loral 
from  State  and  National  Issues. 

The  Inaugural  address  of  Mayor 
Hayes,  of  Baltimore,  who  was  elected 
last  spring,  met  the  fullest  expectations 
of  the  reformers  who  urged  his  election. 
In  spite  of  the  recent  victory  of  his 
party  in  city  and  state,  he  pledged  him- 
self to  a  non-partisan  administration  as 
but  few  public  officials  have  done.  "The 
use  of  a  municipal  position  by  a  subor- 
dinate,"   he    said,    "to    advance  the  in- 


terests  of  any   politician   or   party   will 
be    at    once    proper    reason    for    the    re- 
moval  of  such   subordinate:   and   if  the 
head    of    the    department    does    not    re- 
move  such    subordinate.    I    will    remove 
the  head  of  the  department."    With  re- 
gard to  the  police  force,  also,  he  thoroly 
indorsed  the  legislative  measures  of  the 
Reform    League,    requiring    a    civil  ser- 
vice  examination   of  all   appointees.    In 
Syracuse,     N.    Y.,    also,    the     municipal 
election     just     held     demonstrated    the 
advance   of   the    principle    of   non-parti- 
sanship in   city   government.    The   pres- 
ent    Mayor,     Mr.     McGuire,    was     first 
elected  as  a  Democrat  because  of  a  di- 
vision in  the  Republican  party.    He  was 
re-elected  thru  a  similar  division.     This 
year  the   Republican   factions   were  ap- 
parently   united    against   him,    and    had 
as  their  candidate  a   maji   of  fine  char- 
acter and  ability.    The  city  is  strongly 
Republican,   and,   had   party   ties   deter- 
mined the  votes  of  the  citizens.   Mayor 
McGuire     would     have    been     defeated. 
He  and  his  friends,  however,  conducted 
a  campaign    on   municipal    issues,    with 
tracts  and  lantern  slides  showing  what 
had  been  done  in  matters  of  city  house- 
keeping during   the   four   years   he   had 
been    in    office.    No     National     question 
was  touched  upon,  and  Mayor  McGuire 
was   re-elected  by   a   substantial   major- 
ity.      In    San    Francisco,    California,    a 
similar    success    was    achieved.    Mayor 
Phelan,    who    made    himself    the    leader 
of  the   anti-machine   Democrats   of    the 
city   by   his   fearless   and   uncompromis- 
ing  fight    against    Boss    Bulkley    a    few 
years    ago,    was    the   Democratic    candi- 
date   for    re-election.    The   Republicans 
had  carried  the  city  last  November,  and 
attempted   to  carry   it   again   by   urging 
the  supreme  importance  of  National  is- 
sues.   Mayor  Phelan  conducted  his  cam- 
ptiign     strictly    upon     municipal    Issues, 
risking  on    that    account   an     organized 
revolt   within   his   own   party,   and    won 
the  election  by  a  plurality  of  more  than 
seven     thousand.    He     will     administer 
San    Francisco   under   the   new   and   ad- 
mirajjjle  charter  which  he  helped  to  se- 
cure,   and    men    of    all    parties    are    ex- 
pecting a  pure  and   progressive  govern- 
ment.   If   this   practice  of  selecting  mu- 
nicipal officials  on  municipal  issues  shall 
go  on  making  headway   until  voters  no 
longer   feel    that     their    ballots     for   or 
against    city    candidates    will    be    inter- 
preted as  ballots  for  or  against  expan- 
sion   or    sliver    or    tariff,    the    gain    will 
be  immeasurable.     On  this  matter,  how- 
ever, the  chief  obligation  rests  upon  the 
press    not    to     misinterpret    the    signifi- 
cance   of     local     elections    in    order    to 
make     party    capital    out    of    municipal 
overturns.    (From  The  Outlook,  Nov.  25, 
'99.) 

Civil  Service  and  Home  Rule. 

Mayor  Hart,  of  Boston,  in  his 
1900  message,  and  Governor  Crane, 
of  Massachusetts,  in  his  inaugural 
speak  strongly  in  favor  of  munici- 
pal home-rule,  and  the  Mayor  en- 
dorses the  merit  system  as  follows: 
"The  civil  service  law,  in  its  letter 
and  spirit,  will  be  complied  with, 
and  applicants  for  employment  in 


THE  LATEST  NOTES. 


537 


the  public  service  should  learn  that 
the  law  is  their  good  friend,  not 
an  enemy,  except  to  evil  doers. 
And  let  all  know  that  this  is  to 
be  a  g-ovemment  of  law  and  order, 
not  of  partisanship  or  spoils."  Two 
excellent,  enlig-htened,  forceful 
documents,  the  messagre  and  in- 
augural of  these  two  officers  who 
place  their  allegiance  to  city  and 
state  above  their  allegiance  to  the 
Eepublican  party  that  elected  them. 

Q.  Election  Frauds.  One  of  the 
most  difficult  forms  of  corruption 
to  meet  is  the  bribery  of  voters  by 
a  promise  conditioned  upon  the 
success  of  the  candidate  or  ticket 
the  briber  is  working  for.  The 
corruptionist  says  to  the  boss:  "If 
our  ticket  wins  in  this  ward  (or 
district  or  polling  place)  there'll 
be  $5  for  every  hoy  that  votes  our 
waj-;  but  if  our  ticket  does  not  win 
here  you  won't  get  a  cent  for  your- 
self or  any  of  the  boys."  The  au- 
tomatic ballot  makes  false  counting 
and  box  stuffing  impossible,  and 
discourages  ordinary  individual  bri- 
bery because  the  voter  can  take  his 
bribe  and  still  vote  his  own  way; 
but  it  does  not  meet  these  condi- 
tional agreements.  Nothing  can  do 
that  apparently  under  present  con- 
ditions of  avei-age  conscience  and 
intelligence,  except  great  watchful- 
ness on  the  part  of  honest  citizens 
and  a  strong  corrupt  practices  act 
to  make  such  agreements  too  dan- 
gerous to  risk. 

2.  Philadelphia  Elevtion  Frauds. 
At  a  hearing  in  Philadelphia,  Nov. 
10,  '99,  it  was  shown,  by  the  tes- 
timony of  one  who  took  part  in  the 
affaii-,  that  in  the  13th  Division  of 
the  7th  Ward  a  large  number  of 
folded  ballots  (about  200  the  wit- 
ness thought)  were  put  in  the  bal- 
lot boxes  before  the  polls  were 
opened.  Additional  fraudulent  votes 
were  put  in  during  the  day,  and  a 
number  of  genuine  votes  were  de- 
stroyed. The  number  of  votes  ac- 
tually cast  was  124,  while  the  re- 
turns showed  over  340,  337  votes 
being  returaed  for  the  republican 
candidate  for  State  Treasurer.  The 
fraud  was  accomplisht  by  collusion 
among-  one  of  the  inspectors  of  elec- 
tion and  persons  imijersonating  the 
other  inspector  and  the  judge  of 
election  who  was  ill.  Some  o1'  tlie 
men      concerned      came     on      fniu 


Washington,  and  their  hotel  billa 
Avere  paid  by  a  well-known  local  re- 
publican. Several  ,  prominent  re- 
publican politicians  were  impli- 
cated by  the  testimony. 

The  Pennsylvania  Constitution 
does  not  require  personal  registra- 
tion by  the  voter,  and  the  law  is 
otherwise  very  loose.  Any  voter  may 
take  another  person  into  the  booth 
^vith  him,  so  that  bribery  and  in- 
timidation are  easy.  The  Munici- 
pal League  of  Philadelphia,  the 
Prohibitionists  and  The  Business 
Men's  Republican  League,  have 
been  hard  at  work  detecting  and 
punishing  fi-audulent  registration, 
in  that  citj',  and  thej'  think  the 
fraudulent  vote  has  been  reduced 
this  A-ear  to  about  one-hfilf  its 
usual  dimensions,  but  even  this  re- 
duction is  thought  to  leave  some 
15,000  fraudulent  votes.  In  a  re- 
cent letter  to  the  Pi'esident  of  the 
Business  Men's  Republican  League 
John  Wanamaker  say.s: 

"We  have  not  had  au  honest  election 
in  Pennsylvania  for  years.  When  the 
host  of  Pennsylvania  freemen,  supposed 
to  be  enlightened  and  independent, 
march  to  the  polls,  each  Individual 
voter  knows  that  he  is  acting  under  a 
remorseless  espionage  from  which  there 
is  no  refxige  or  escape;  that  he  must 
answer  to  his  party,  his  boss,  or  his 
industrial  master,  if  he  is  in  any  wise 
dependent;  that  his  ambitious  may  be 
crusht,  his  employment  terminated,  his 
bread  stopt,  if  he  consults  his  own  con- 
science and  votes  according  to  his  judg- 
ment; while  for  those  who  are  liable 
to  such  temptations  the  bribes  of  money 
and  drinli  are  offered  on  every  side. 
These  transactions  in  votes— awful,  ter- 
rible in  the  aggregate— go  on  before  all 
eyes.  We  see  an  enormous  proportion 
of  the  voters  all  over  the  State,  a  pro- 
portion increasing  instead  of  diminish- 
ing, going  into  booths,  each  accompa- 
nied  by  another." 

The  self-respecting  majority  in  the  last 
Legislature  voted  to  submit  constitu- 
tional amendments  that  would  make 
registration  and  ballot  reform  laws  pos- 
sible, but  Governor  Stone  vetoed  them. 
Mr.  Wanamaker  justly  urges  that  the 
election  of  a  Legislature  pledged  to  call 
a  Constitutional  Convention  to  provide 
for  immediate  ballot  reform  is  the 
State's  supreme   need. 

R.  Another  Legislature  Corrupted 
by  the  Purchase  of  a  V.  8.  Senator- 
ship.  Now  comes  Senator  Carter, 
of  Mont-ana,  presenting  to  the  U.  S. 
Senate  a  memorial  against  the  va- 
lidity of  the  pretended  election  of 
Wm.  A.  Clark  as  his  colleagTie.  The 
memorial  says  that  $30,000  paid  to 
members  of  the  ^Montana  Legisla- 
ture bv  Mr.  Clark  or  his  agents  for 


538 


APPENDIX    II. 


votes,  has  been  produced  in  open 
session  of  the  Legislatxire  and  is 
now  in  the  treasury  of  Montana. 
Tlie  document  is  signed  by  the 
S])eaker  of  the  Montana  House  and 
27  leg-islators,  and  is  accompanied 
by  a  petition  signed  by  the  Gov- 
ernor of  the  state  and  many  promi- 
nent citizens,  wherein  it  is  affirmed 
that  certain  members  of  the  Legis- 
lature, whose  names  are  given,  re- 
ceived for  their  votes  specified  sums 
aggregating  $500,000.  The  charges 
have  been  virtually  sustained  by 
the  unanimous  decision  of  the  Su- 
preme Court  of  the  State  disbarring 
Clark's  alleged  agent  (Wellcome) 
upon  indubitable  evidence  of  his 
having  bribed  Senators  in  Clark's 
behalf.  It  is  not  pleasant  to  have 
this  bucket  of  political  filth  from 
Montana  thrown  over  our  civic  gar- 
ments as  we  cross  the  threshold 
of  1900,  but  the  action  of  the  Su- 
preme Court  is  refreshing,  and  the 
air  will  clear  decidedly  if  the  U.  S. 
Senate  will  do  its  duty  by  Clark 
as  well  as  the  Supreme  'Court  has 
done  it  by  Wellcome. 

Is  it  not  time  that  U.  S.  Senators 
were  elected  by  the  x>eople,  to  help 
the  elimination  of  corruption  from 
legislative  bodies,  state  and  nation- 
al, and  to  allow  the  election  of 
state  legislators  in  reference  to 
state  issues  and  not  in  reference 
to  the  selection  of  Senators  to  de- 
termine the   national   policy? 

8.  Special  Legislation.  The  N.  Y. 
Laws  of  1899,  contain  special 
laws  relating  to  cities,  towns  and 
villages  to  an  extent  requiring  over 
five  large  pages  to  index  the  acts. 
Here  are  a  few  examples: 

Albany,    Beaver  Park,   grading  and    Im- 
provement of. 
Auburn,    paving    of    portion    of    South 

street. 
Blnghamton,   brick  pavement  on    Court 

street. 
Buffalo,    charter   amended    (11    different 
acts). 

Surfacing  Niagara   street. 
Dunkirk,    charter    amended. 
Elmira,  charter  amended. 

Damages    for    changing    grade    of 
Walnut  street. 
New     Rochelle,    damages    arising    from 

change  of  grade. 
Schenectady,   charter  amended. 

Organization   of  fire   department. 

Sewer  act  amended. 

Water  supply  act  amended. 
Saratoga  Springs,  disposal  of  sewage. 


Syracuse,   charter  amended    (5  different 
acts). 
Bridge   over   Onondaga  creek,   tax 

for. 
Maps  of  city,  tax  for. 
Waterford,  paving  of  Broad  street. 
New  York  C^ity,  blind,  licenses  to. 
Auctioneers,   licensing,   etc. 
Amsterdam    avenue,   laying    street 

railway  tracks  in. 
Alumni  Assoc,  of  the  Presbyterian 

Hospital   Training   School   for 

Nurses  in. 
Dalrymple,     John     D.,     reappoint- 
ment of,  as  fireman. 
Hamilton, Archibald,  reappointment 

of,  as  policeman. 
Sheehan,  Michael,  claim  allowed. 
Wynn  Bros.,  claim  of,  against  city, 

I)ayment  of. 

All  such  acts  as  these  and  many 
others  should  be  left  to  local  au- 
thorities and  the  courts. 


77(6  Biishnell  Commission.  The 
Ohio  Commission  appointed  by 
Gov.  Bushnell  to  formulate  a  code 
for  municipal  administration  re- 
ports: 

1.  That  there  should  be  but  two 
classes  of  cities  recognized  in  the 
law — those  of  3,000  people  or  more, 
and  those  of  less  than  3,000.  This 
is  to  checkmate  special  legislation. 
The  Ohio  constitution  forbids  spec- 
ial legislation,  biit  this  has  been 
nullified  by  an  elaborate  classifica- 
tion of  cities,  thru  which  an  act 
controlling  a  "class"  often  applied 
to  onlj'  a  single  place.  (The  pro- 
posed classification  would  not  pre- 
vent the  legislature  from  passing 
acts  to  take  effect  only  in  such 
cities  as  might  adopt  its  provisions 
by  vote  of  the  councils  or  by  vote 
of  the  people.  The  latter  sort  of 
law  I  think  shovild  not  be  barred, 
but  objectionable  measures  might 
frequently  be  passed  with  the  coun- 
cil option.  To  adjust  this  it  might 
be  well  to  provide  that  in  case  of 
o])tion  laAvs  beyond  the  mere  regu- 
lation of  government  routine,  the 
option  of  adoption  must  be  placed 
in  the  people.) 

2.  That  as  city  councils  are  really 
boards  of  business  directors,  there 
should  be  one  board,  instead  of  two 
bodies  with  concui-rent  powers  to 
undo  or  deadlock  each  other's  work. 

3.  Strong  mayor  with  full  power 
of  appointing  and  removing  heads 
of  departments. 

4.  City  emploj-ees  forbidden  to 
attend  party  conventions  or  make 
political  contributions.       (Questioa 


THE   LATEST   NOTES. 


539 


the  wisdom  of  depriving-  anj'  man 
of  equal  civic  rig-hts.) 

5.  Examining-  boards  to  deter- 
mine fitness  of  all  candidates  for 
appointive  positions. 

6.  No  alienation  of  franchises 
without  consent  of  voters. 

7.  Voters  shall  have  the  right  to 
order  the  municipal  purchase  and 
operation  of  all  municipal  monop- 
olies. 

Good  ! 

T.  Multiplicity  of  Laics.  The  Eng- 
lish Railvi'ay  Commission  of  1867  re- 
ported that  in  addition  to  the  acts 
of  universal  application,  the  rights 
of  railways  and  of  the  public  in  re- 
lation to  them  were  scattered  thru 
3,100  acts  of  Parliament.  And  Chas. 
Francis  Adams  in  1870  speaks  of 
"the  3,200  railway  acts  on  the  stat- 
ute-book of  Great  Britain,  and  the 
1,000  on  that  of  Massachusetts — 
nine-tenths  of  them,  in  each  case, 
special  legislation  to  meet  the  re- 
quirements of  an  organized  mo- 
nopoly." (Chapters  of  Erie,  pp.  372, 
423). 

U.  Statute  Notes  relevant  to  Chap- 
ter III  on  Home  Rule  for  Cities. 
The  volumes  of  laws  passed  in  va- 
rious states  come  straggling  in, 
some  of  them  being  distributed 
with  such  deliberation  that  even 
yet  (Dec.  22,  1899),  last  winters 
session  laws  for  Del.,  Ga.,  Fla., 
Miss.,  and  Ariz,  are  not  to  be  found 
in  Boston  libraries.  A  few  points 
coming  too  late  for  full  entry  in 
Chap.  Ill  may  be  noted  here. 

Wisconsin.  (Telephones,  etc.)  (;hap. 
309,  1899.  gives  any  conntry,  town,  vil- 
lage or  city  the  right  to  issue  negotia- 
ble bonds  for  the  purchase,  construc- 
tion, maintenance  and  operation  of  tele- 
phone lines  and  exchanges,  or  to  build 
or  buy  water  works,  gas  or  electric  plants, 
purchase  fire  engines,   etc. 

Nevada.  (Telephones.)  Chap.  76.  1899. 
Upon  petition  of  two-thirds  of  the  tax- 
payers of  the  county  the  county  com- 
missioners may  purchase  or  construct 
telephone  lines,  if  they  think  it  would 
be  for  the  interest  of  the  county  to 
own  such  lines. 

North  Dakota.  (Telephones.)  Chap  40. 
1899.  City  councils  may  grant  right  of 
way  to  telephone  companies  if  the  ma- 
jority of  stock  is  owned  by  residents 
of,  and  the  principal  place  of  business 
is  In,  the  State. 

Colorado.    (Water,     gas     and     electric 
light).     Chap.  153,  1899.    A  city  or  town 
may  purchase,  erect  or  authorize  water, 
gas  or  electric  light  works,  but  uo  works 


shall  be  erected  or  authorized  except 
upon  a  majority  vote  of  the  taxpayers. 
When  a  city  or  town  authorizes  the 
erection  of  such  works  by  others,  or 
the  extension  or  renewal  of  such  a 
franchise,  it  shall  be  upon  the  express 
condition  that  the  city  or  town  shall 
have  the  right  to  purchase  such  works 
at  any  time  at  the  actual  cash  value 
of  the  works,  ("excluding  the  value  of 
the  franchise,  right  of  way  thru  the 
streets,  contract  with  municipality," 
etc.) 

Missouri.  (Street  railways.)  P.  105, 
1899.  Cities  may  grant  the  use  of  streets 
for  street  railway  tracks  only  on  peti- 
tion of  one-half  the  owners  on  the 
street. 

Ohio.  (Gas  or  electric  works.)  P.  60, 
1S{>9,  the  council  of  any  city  or  village 
may  erect  or  purchase  gas  or  electric 
works. 

Municipal  Dcht  Limit.  The  Comp- 
troller of  New  York  City,  Mr.  Bird 
S.  Coler,  in  a  speech  before  the 
C;ity  Club  (Dec,  1899)  vigorously 
advocates  municipal  ownership  of 
municipal  industries,  including  the 
water  system,  docks  and  the  under- 
ground railway.  He  believes  that 
the  limit  put  by  the  Constitution 
on  the  power  of  the  city  to  incur 
debts  should  be  so  modified  as  to 
separate  debts  incurred  for  public 
utilities  that  yield  a  revenue  from 
debts  incurred  for  services  that  are 
not  self-sustaining,  and  that  a  debt 
which  uill  not  be  a  charge  upon  the 
taxpayer  should  not  be  included  in 
those  charged  against  the  borrowing 
capacity  of  the  city.  We  believe  the 
Comptroller  is  certainly  right  in 
this  and  the  point  is  a  very  im- 
portant one. 

The  jjeople  of  the  city  have  voted 
overwhelmingly  to  own  the  under- 
ground railroad.  It  is  to  be  built 
with  capital  raised  on  city  bonds, 
under  a  contract  by  w^hich  the  com- 
panj"^  building  the  road  pays  inter- 
est and  clears  off  the  debt  so  that 
at  the  end  of  50  years  the  city  will 
own  the  Avhole  property  free  of 
debt,  without  a  dollar  of  taxation 
for  either  principal  or  interest. 
(Outlook,  Dec.  23,  1899.) 

:\ 

Haverhill  Gas  Case  (continued 
from  p.  523).  At  the  hearing  be- 
fore the  Gas  Commission  it  ap- 
]>eared  from  admissions  of  the  com- 
pany's treasurer  and  other  evidence 
that  for  the  year  ending  June  30, 
1S99,  the  company  made  profits 
amounting  to  77  per  cent,  on  the  ac- 
tual  investment   of   the   owners   in 


640 


APPENDIX  II. 


the  property;  that  the  company 
charged  $1.19  net  for  gas  during 
said  year,  while  the  operating  cost 
was  reported  at  less  than  63  cents, 
including  taxes  and  repairs;  and 
that  the  company  was  in  the  habit  of 
putting  into  the  operating  expenses 
under  the  item  of  repairs  "heavy 
charges  which  w^ere  in  reality  for 
new  construction."  The  dividends 
paid  since  the  organization  of  the 
company  in  1853  have  averaged  10 
per  cent,  a  year,  in  addition  to 
which  over  $325,000  of  new  assets 
have  been  accumulated  out  of  earn- 
ings. For  the  last  13  years  the  div- 
idends average  14  per  cent,  a  year, 
with  an  increase  of  assets  in  the 
same  time  of  more  than  $300,000, 
all  paid  for  out  of  earnings.  In  ad- 
dition to  paying  a  large  interest  on 
the  real  capital  invested  by  the 
company,  the  community  has  paid 
for  over  4/5  of  the  present  plant, 
the  legal  title  to  which  is  not  in  the 
community  that  has  paid  for  it,  but 
in  the  gas  company,  which  uses  the 
plant  built  with  the  citizens'  money 
to  make  and  distribute  gas  to  those 
citizens  at  rates  yielding  the  com- 
pany 77  per  cent,  profit. 

With  the  present  output,  about 
8  cents  per  thousand  feet  would 
amount  to  a  10  per  cent,  dividend 
on  the  true  capital;  the  im- 
proper items  included  in  the 
operating  account  quite  likely 
balance  depreciation,  but  to 
make  sure  we  will  add  9  cents 
on  that  score,  making  the  op- 
erating cost  with  depreciation  72 
cents  at  the  outside,  and  the  total 
fair  price  of  gas  not  more  than  80 
cents,  including  the  10  per  cent, 
dividend  on  capital.  Accordingly, 
Mr.  G.  W.  Anderson,  counsel  for 
the  city,  on  the  gas  petition  of 
Mayor  Chase,  asked  the  Commis- 
sion to  order  the  price  of  gas  in 
Haverhill  reduced  to  80  cents. 

In  his  argument  he  called  atten- 
tion to  the  fact  that  thru  the  me- 
dium of  a  second  coiTDoration,  the 
corporation  laws  of  Massachusetts 
have  been  broken  into  splinters. 
Mr.  Nevins,  of  New  Jersey,  bought 
the  Haverhill  gas  stock  for 
$500,000,  and  organized  "The  Hav- 
erhill Gas  Securities  Company,"  to 
do  a  brokerage  business,  purchase 
and  hold   stocks,  etc.     The  Securi- 


ties Company  issued  $500,000  of 
stock.  Then  the  Haverhill  Gas 
Company  and  the  Securities  Com- 
pany joined  in  a  mortgage  of  the 
property  and  franchises  of  the  Gas 
Company  to  the  Old  Colony  Trust 
Company  as  trustee,  to  secure 
$500,000  of  bonds  of  the  Securities 
Company,  which  bonds  have  been 
issued,  and  in  large  part  sold,  but 
none  of  the  money  has  gone  into 
the  treasury  of  the  Gaslight  Com- 
pany. In  other  words,  a  plant 
worth  $400,000  and  actually  costing 
the  real  investors  only  $75,000,  ap- 
pears now^  in  effect  to  be  capital- 
ized at  $1,000,000  thru  transactions 
in  utter  violation  of  both  the  letter 
and  spirit  of  Massachiisetts  laws — 
a  violation  which  in  part  is  crim- 
inal under  the  provisions  of  our 
law. 

Counsel  called  attention  to  the 
fact  that  in  the  case  of  these  nat- 
ural monopolies,  especially  when 
made  legal  monopolies  as  in  Massa- 
chusetts, by  the  definite  exclusion 
of  all  competing  companies,  the 
only  refuge  of  the  people,  aside 
from  municipal  ownership,  is  abso- 
lute publicity  of  corporate  busi- 
ness, and  fair  adjudication  of  rates 
by  an  impartial  tribunal. 

"The  publicity  required  by  the 
second  proposition  lies  at  the  basis 
of  the  regulation  stated  as  the 
third  proposition.  Without  public- 
ity, regulation  is  a  fraud,  a  farce, 
a  mere  sop  thrown  to  the  public; 
a  cover  under  which  to  hide 
schemes  of  extortion  and  specula- 
tion. The  new  sj'stem  requires  the 
consumer,  when  these  exorbitant 
rates  are  being  charged  him,  to 
come  here  and  ask  for  a  reduction; 
he  cannot  invoke  competition. 
Without  publicitj-,  without  inform- 
ation as  to  the  cost,  of  the  product 
delivered  to  him  by  the  legalized 
monojjoly,  he  cannot  tell  whether 
exorbitant  rates  are  being  charged 
him  or  not.  In  England  the  most 
absolute  publicity  is  required  of 
these  quasi-public  corporations." 

"What  has  been  the  i)olicy  of  this 
Board  relative  to  publicity  of  re- 
turns? From  the  time  this  Board 
was  organized  in  1885  until  to-day, 
it  has,  with  the  exception  of  one 
short  period,  by  majority  votes  re- 
fused  to  allow  the  public  to  find 


THE   LATEST   NOTES. 


541 


out  the  cost  of  the  product  of  the 
companies  given,  by  the  statute 
creating  this  Commission,  an  abso- 
lute monopoly  in  their  communi- 
ties. Bound  to  make  public  reports 
for  the  supposed  purpose  of  inform- 
ing- the  public  of  the  facts  requisite 
to  enable  them  to  invoke  the  judic- 
ial powers  of  this  Board  for  the 
reduction  of  extortionate  rates,  it 
has  never  made  a  report  from 
which  the  ordinary  citizen  can  de- 
duce, even  by  careful  study,  wheth- 
er his  gas  company  is  charging 
him  10  per  cent,  or  75  per  cent, 
profit  on  the  product  furnished." 

"In  1894  Haverhill  petitioned  for 
a  reduction  in  the  price  of  gas. 
The  company  was  charging  $1.40. 
The  cost  was  about  80  cents.  The 
company  was  making  60  cents  per 
thousand  feet  profit  and  this  Com- 
mission sugg-ested  that  it  should 
only  make  50  cents;  they  reduced 
the  charges  10  cents,  leaving  the 
company  a  profit  of  62  per  cent,  on 
the  cost  (or  38  per  cent,  on  the  in- 
Tested  capital)." 

"Can  anyone  state  any  legitimate 
reason  wh\%  when  the  gas  consum- 
ers of  Haverhill  came  before  this 
Board  and  asked  for  a  reduction  in 
the  price  of  gas,  this  Board  should 
throw  them  a  ten-cent  per  thou- 
sand sop,  render  an  opinion,  four- 
fifths  of  which  is  in  no  way  perti- 
nent to  the  case  presented,  and 
leave  the  company  to  go  on  charg- 
ing gas  consumers  a  profit  of  over 
60  per  cent  (on  the  cost)  for  five 
years  more,  until  the  accumula- 
tions of  that  company  have  become 
so  great  that  the  foreign  speculator 
could  not  resist  the  temptation  to 
come  here  and  bj^  illegitimate  and 
criminal  methods  seek  to  recapital- 
ize the  business.  I  make  bold  to 
say  that  the  policy  of  this  Board  as 
a  regulator  of  public-service  cor- 
porations has  been  a  failure:  that 
it  has  not  protected  the  public; 
that  the  statute  under  which  this 
Board  was  organized  has  en- 
trenched monopoly  and  deprived 
the  people  of  the  poor  protection 
that  competition  formerly  gave 
them,  I  assert  that  the  Haverhill 
case,  now  presented  before  you, 
where  a  $75,000  corporation  has 
been  recapitalized  for  $500,000  or 
$1,000,000,   is   a  natural   and   legiti- 


mate result   of   the   policy   of   this 
Board." 

"When  jou  permit  an  entrenched 
monopoly  to  earn  from  50  per  cent, 
to  100  per  cent,  upon  the  capital 
originally  invested,  you  make  it 
absolutely  certain  that  some  pro- 
moter will  come  forward  and  seek 
in  some  way  to  capitalize  that 
earning  power.  I  have  little  to  say 
in  denunciation  of  the  stockholders 
of  the  HaverhDl  Gaslight  Company, 
who  sold  out  their  stock  for 
$500,000,  par  being  $75,000.  Who 
would  not  have  done  it?  I  have 
little  to  say  in  denunciation  of 
the  Messrs.  Nevins,  who  saw  or 
thought  they  saw,  an  opportunity 
to  make  a  half  a  million  dollars  by 
selling  futures  on  the  monopoly  en- 
trenched under  the  wing  of  this 
Commission." 

"This  Commission  has  afforded 
the  opportunity  for  this  exploita- 
tion. Who  can  blame  these  people 
for  grasping  the  opportunity  of- 
fered? If  the  petition  of  1894  had 
been  dealt  with  as  the  facts  and  as 
justice  required,  the  Haverhill  Gas- 
light Company  stock  would  never 
have  been  worth  $500,000." 

"A  company  may,  if  it  chooses, 
charge  twenty  cents  on  every  1,000 
feet  as  made  for  current  repairs, 
which  it  is  really  expending  for 
part  of  a  new  plant,  and  the  re- 
turns to  this  Board  will  not  show 
it,  much  less  the  report  of  this 
Board  to  the  public.  The  company 
maj-  easily  conceal  under  an  exor- 
bitant salary — which  you  do  not 
publish  at  all,  although  it  is  re- 
quired bj'  the  statute — ten  cents 
per  1,000  feet.  I  don't  know  any 
reason  why  these  gentlemen  who 
now  own  the  legal  monopoly 
known  as  the  Haverhill  Gaslight 
Company,  if  they  want  to  pay 
$20,000  salaries,  cannot  do  it;  under 
the  policj-  of  this  Board  the  people 
have  nothing  to  say  about  it.  They 
must  not  even  know  about  it,  for 
that  would  be  "unwise."  They 
might  bring  a  petition  for  a  reduc- 
tion of  price." 

"7  submit  to  this  Board,  that  not 
merely  the  question  of  the  reduction 
of  rates  in  Haverhill  is  on  trial,  but 
the  question  of  the  power  and  the 
usefulness   and  the  existence  of  this 


542 


APPENDIX  II. 


Commission,   is  on    trial    before    the 
people  of  this  Commonwealth." 

In  closing-,  Mr.  Anderson  said 
that  "the  price  of  gas  in  Haverhill 
should  be  somewhere  from  70  to  75 
cents — certainly  it  should  not  ex- 
ceed 80  cents,"  and  also  suggested 
that  proceedings  should  be  insti- 
tuted for  the  forfeiture  of  the  char- 
ter of  the  gas  companies  for  viola- 
tion of  law^  in  transferring  its  fran- 
chise without  authority. 

The  company  claimed  at  the 
hearing  that,  with  due  allowance 
for  repairs,  the  cost  of  ojjeration 
was  70  cents  last  year,  and  judging 
by  the  four  months  ending  Oct.  30, 
1899,  the  cost  next  j'ear  would  be 
85  cents;  but  the  city  showed  that 
during  those  four  months  21/2  miles 
of  new  mains  had  been  laid  and 
paid  for,  and  that  in  other  respects 
the  estimate  was  unreliable. 

The  result  of  this  vigorous  attack 
is  an  order  bj/  the  Gas  Commission, 
reducing  the  gas  charge  in  Haverhill 
to  80  cents.  This  is  a  remarkable 
victory,  and  great  credit  is  due  to 
Mayor  Chase  and  his  counsel,  Mr. 
Anderson,  of  the  Tremont  Building, 
Boston,  and  Prof.  Bemis,  of  New 
York,  who  assisted  in  the  statisti- 
cal part  of  the  investigation.  The 
outcome  will  be  likelj'  to  rouse 
other  communities  paying  30  or  40 
or  50  cents  a  thousand  too  much. 
Even  the  consumers  of  $1  gas  in 
Boston  may  wake  up  and  do  some- 
thing. The  cost  of  making  and 
distributing  gas  is  much  less  per 
thousand  in  Boston  than  in  Haver- 
hill and  the  people  here  also  have 
paid  for  many  years  large  excesses 
of  profit  beyond  real  cost  and  rea- 
sonable dividends.  If  80  cents  is  a 
reasonable  price  in  Haverhill,  and 
you  may  be  sure  the  Commission 
would  never  have  given  the  order 
till  certain  it  was  not  too  low  a 
rate  to  yield  a  good  profit — if  80 
cents  is  fair  in  Haverhill,  60  cents 
would  probably  be  fair  in  Boston, 
and  in  the  light  of  the  Passaic 
offer,  noted  on  p,  523.  60  cents 
would   seem  more   than   fair. 


The  Referendum  Again. 

In  a  New  England  town  any  10  voters 
can  bring  a  question  before  the  people 
for  decision— a  petition  signed  by  10  vo- 
ters puts  the  matter  In  the  warrant  to 
be  acted  on  at  town  meeting— that  Is, 
less  than  1  per  cent,  of  the  voters  In 
a  large  town,  or  2,  3,  5  or  10  per  cent. 
In  smaller  towns  can  initiate  any  de- 
sired action  and  secure  a  vote  of  the 
people  upon  it.  Why  should  not  the- 
voters  of  cities  have  equivalent  rights 
of  self-government?  Why  should  not 
1,000,  3,000  or  5,000  voters  In  a  city 
have  at  least  as  much  power  to  initiate 
measures  and  bring  thorn  before  the 
people  for  decision,  as  10  voters  in  a 
town? 

A  year  ago  immense  mass  meetings 
were  held  In  Chicago  in  opposition  to 
the  50  year  street  railway  franchise, 
and  the  proposal  to  hang  Yerkes  and 
any  councilmen  who  voted  for  the  fran- 
chise was  vigorously  applauded;  in  ef- 
fect, "a  tremendous  mob,  having  prac- 
tically the  backing  of  Mayor  Harrison, 
overawed  the  city  council  and  forced  .'t 
to  reconsider  Its  determination  to  give 
the  street  car  monopolies  a  50-year  fran- 
chise." Not  long  ago  a  similar  "inob  in 
St.  Louis  defied  the  police  and  fright- 
ened the  House  of  Delegates  of  that 
city  into  quickly  passing  a  law  provid- 
ing for  the  proper  liglitln^  of  the 
streets."  (Civic  and  Social  Prob.?.,  Feb. 
1,   19000 

If  the  people  were  reallv  sovereign 
they  would  not  have  to  mob  the  govern- 
ment to  get  the  laws  they  want.  If 
cities  had  the  referendum  the  people 
would  not  have  to  threaten  to  hanji 
councils,  nor  defy  their  own  police  in 
order  to  pass  a  law.  A  petition  wou'd 
do  the  work. 

The  Contract  System. 

The  street  cleaning  department  of 
Washington,  D.  C,  has  been  testing  the 
relative  cost  of  direct  employment  and 
contract  work  and  it  finds  the  cost  of 
hand  cleaning  by  direct  employment  t<i 
be  18  cents  per  1000  sq.  yds.,  while  the 
contract  rate  was  32  cents  per  1000  sq. 
yds.,  or  about  80  per  cent,  more  than 
the  cost  of  doing  the  work  without 
contract,  and  this  In  face  of  the 
fact  that  the  City  paid  the  labor- 
ers 25  per  cent,  higher  wages  than 
the  contractors  paid  (contractors  paid  .?! 
a  day,  and  the  street  department  paid 
$1.25  a  dav.)  For  the  year  ending  June 
30,  1899,  the  city  cleaned  by  direct 
labor,  75,356,385  sq.  yds.  and  saved 
thereby  some  $10,550.  To  clean  the  en- 
tire paved  area  of  the  city  every  day  for 
270  days  at  the  contract  rate  in  force 
during  the  period  of  this  test,  would 
cost  $311,040,  without  contract  the  same 
work  could  be  done  at  an  annual  cost  of 
$174,960,  a  difference  of  $136,080  In  favor 
of  the  abolition  of  the  contract  s.ystem. 
(Quoted  in  substance,  and  the  last  part 
verbatim,  from  p.  4  of  the  Report  of  tlie 
Sup't  of  the  Street  Cleaning  Depart- 
ment of  the  District  of  Columbia,  Sept. 
20,  1899.) 


SUPPLEMENT 

TO 

The  City  for  the  People.— {Equity  Series  Nos.  3  and  4,  March  and  June,  1899.) 
Brrata   and   i^ddenda 

Note  the  points  at  the  proper  places  in  your  book,  or  cut  up  this  supplement  and  place 
the  pieces  in  the  book  on  the  pages  referred  to,  or  paste  the  whole  statement  in  the  book 
and  make  a  marginal  reference  to  it  on  each  page  involved. 

Page  30. — In  the  last  column  of  the  table  opposite  Milan,  the  2  cents  average  fare  should 

be  1.8  cents. 
Page  59. — In  the  2nd  line  below  the  second  table  the  word   "out"  is  omitted  after  the 
word  "  cut "-  the  legislature  had  cut  out  the  bogus  bond  and  forced  down  the  capi- 
talization— see  p.  80. 
Page  81.— In  the  7th  line  from  the  bottom,  "  Chapter  of  Erie  "  should  be  "  Chapters  of 

Erie." 
Page  161. — In  the  i2ih  line  from  the  bottom  of  the  left-hand  column  the  word  "and" 

should  be  omitted. 
Page  431. — Below  the  table,  X —  should  be  X=. 

Referring  to  page  520,  sec.  4,  an  excellent  rule  for  determining  the  actual  value  ol 
property  taken  for  public  use  is  the  one  adopted  by  the  Mass.  Legislature  in  chap.  473, 
sec.  13,  Acts  of  1897,  authorizing  the  municipal  purchase  of  the  Stoneham  water  works,  at 
"the  fair  value  of  the  property  without  allowance  for  past,  present  or  future  earnings,  or 
earning  capacity,  good  will,  or  any  franchise  or  privilege  of  said  company."  In  chap.  474, 
sec.  I  of  the  Mass.  Acts  of  1S94,  relating  to  the  purchase  of  water  works  in  Newburyport, 
the  Legislature  provided  for  compensation  at  the  "  fair  value  of  the  property  for  the  pur- 
poses of  its  use,  such  value  to  be  estimated  without  enhancement  on  account  of  future 
earning  capacity  or  good  will,  or  on  account  of  the  franchise  of  said  company."  The 
company  wanted  compensation  on  the  basis  of  past  and  present  earnings,  but  the  com- 
missioners ruled  out  earnings  as  a  measure  of  value  altogether,  as  also  all  privileges  in 
the  streets,  but  allowed  $40,000  in  a  total  valuation  of  1275,000  (the  par  capitalization  of  the 
company  was  $300,000)  because  the  plant  was  a  "going  concern,  "  tested  by  experience 
and  ready  for  the  city  to  begin  operation  without  the  delay  incident  to  constructing  the 
works,  connecting  with  customers  and  building  up  a  good  business.  These  rulings  were 
sustained  by  Justice  Oliver  Wendell  Holmes,  Jr.,  in  168  Mass.  554,  referring  in  the  course 
of  his  decision  to  Water  Works  Co.  vs.  Kansas  City,  62  Fed.  Rep.  853  where  the  court 
said  that  "  basing  the  value  upon  earnings  is  in  effect  valuing  a  franchise  which  no  longer 
exists."  It  is  clearly  true  that  a  valuation  based  on  earnings  involves  a  valuation  of  the 
franchise,  which  is  one  of  the  chief  factors  in  securing  these  earnings,  and  it  is  also  true 
that  in  states  where  franchises  are  revocable  at  the  will  of  the  legislature  or  the  municipal- 
ity nothing  should  be  paid  on  account  of  franchise  when  the  property  is  taken  for  public 
use.  It  certainly  seems  fair  to  add  something  to  the  structural  value  of  the  plant  where  it 
is  a  going  concern  reasonably  adapted  to  the  purpose  in  hand.  If  the  city  should  build,  it 
would  have  to  lose  interest  and  depreciation  during  the  time  necessary  to  construct  the 
works  and  form  connections  with  a  sustaining  body  of  consumers.  The  rule  adopted  in 
the  Newburyport  case,  sustained  by  the  Supreme  Court  and  reaffirmed  by  the  legislature 
in  the  Act  of  3897,  above  cited,  seems  eminently  just  and  should  be  extended  to  gas  and 
electric  light,  telephone,  street  railways  and  other  franchise  properties,  wherever  they  are 
taken  for  public  use. 

Page  542. — The  Haverhill  Gas  Co.  has  applied  to  the  Federal  Courts  to  enjoin  the  en- 
forcement of  the  order  of  the  Gas  Commission  reducing  the  price  of  gas  to  80  cents 
per  thousand  feet. 


INDEX  OF  SUBJECTS. 


ACCIDENTS 

on  railways  and  street  railways,  67 

leaky  gas,  electric  wires,  grade  crossings,  etc.,  66-8,  88,  93 

fewer  under  pub.  ownership,  150 

railroad,  'n  U.  S.  and  Germany,  150  • 

Brooklyn  Bridge  and  >.'.  Y.  st.  rys.,  150 

relief  payments  to  municipal  employees  in  case  of,  473 
ACCOUNTS 

omissions  and  misstatemts  in   private  co.'s,   see   FALSE   STATEMENTS 
AND  SUPPRESSN  of  FACTS 

of  public  plants  apt  to  be  honest,  l.">2-i! 
ADMISSIONS 

of  H.  A.  Foster  in  regard  to  pub.  owurship,  145,  242 
ADULTERATIONS 

monopoly  tends  to  eliminate,  64 
AMERICAN  FEDERATION  OF  LABOR 

resolutn  on  pub.  ownership,  165,  22'J 

favors  direct  legislatn,  liSO,  337,  368 
ARISTOCRACY 

of  wealth.  91 

of  privilege  (franchise  monopolists,  etc.),  100 

constitutn   guards   agust   titles,   but  not  agnst  the   substance   of  aristoc- 
racy, 174 

pub.  owurship  opposes,  174 

of  law  making  delegates,  255 

direct  legislatn  opposes,  30<>.  313,  3.53,  259-263,  288,  295,  360 
ASSESSMENTS  ON  BETTERMTS.   178-9 
AUCTION 

sale  of  franchises,  449-4.52 
AUSTRALIAN 

ballot  system  not  perfect,  488 
AUTHORITY 

favors  direct  legislation,  352,  286,  289,  291,  296,  368 

favors  municipal  home-rule,  399,  428-9 

favors  pub.  ownership,  211-229 
AUTOilATIC  BALLOT.     Chap.  VII.     pp.  488-490 

secret  and  honest  ballot  vital,  488 

Australian  system  not  perfect,  488 

voting  machines  better,  488-490 

abolishes  box-stnthng  and  false  counting,  489 

and  helps  to  defeat  bribery,  489  (compare  537) 

(don't  stop  repeating,  however,  nor  bad  nominations,  etc.),  489 

laws  authorizing  use  of  ballot  machines,  489 

Rochester's  successful  experience,  489-490  n 

Buffalo  following  suit,  490 
BALLOT 

by  machines,  see  AUTOMATIC  BALLOT,  488 

Australian  system  not  perfect,  488 
BANKERS 

undue  share  of  representation,  356 
BRAMKAMP  WIRE  NAIL  CASE,  32 
BATHS,  PUBLIC 

Boston,    196 

Glasgow,  196 
BAY  STATE  GAS  CO. 

Investigation  of,  23,  44,  58,  59,  77-81,  84 

proflts,  23,  35 

overcapitalization,  77 

frauds,  77-81 

detiance  of  law,  84 
BELL  TELEPHONE  CO.     (See  Telephone) 

rates  excessive,  31 

profits  excessive,  38 

Inferior  service,  65  (compare  117,  151) 

unjust  discrimination,  69 

violation  of  law,  86 

stocks  material  for  gambling,  90 
BETTERMENTS,  assessments  on,  178-9 
BONDS 

for  revenue  producing  utilities  not  to  be  counted  against  the  debt  limit, 
229,  519,  539 


644  INDEX    OF    SUBJECTS. 

BOSTON  ELEVATED 

estimated  cost  of,  54 
BRIBERY 

of  legislators  and  officials  by  monopolists,  70,  71-3.  75,  140 

Philadelphia  franchises,  494 

Broadway  franchise,  71 

Chicago  franchises,  493 

Standard  Oil,  88,  89 

West  End  case  (Boston),  496 

of  voters,  496 

stopped  in  Eug.  by  corrupt  practices  act,  500 
BROADWAY  SURFACE  RD 

fraud  in  franchise.  55,  71,  306 
BROOKLYN  BRIDGE.     (See  INDEX  OF  PLACES) 
BROOKLYN  NAVY  YARD 

fine  results  from  cWil  service  rules,  471 
BROTHERHOOD 

requires  public  ownership  of  monopolies,  172-3 
requires  direct  legislatn,  352 
BUFFALO  CONFERENCE 

favored  direct  legislatn,  pub.  ownershp,  etc.,  229,  368 
BUSINESS 

Increase  of  under  pub.  ownrshlp.     (See  TRAFFIC) 
CABLE  ROADS.     (See  STREET  RAILWAYS) 

CAPITALIZATION.     (See  OVERCAPITALIZATION:  STOCK,  MONOPOLY) 
CHAOS 

of  prices,  22,  27.     (See  MONOPOLY,  C.  I.) 
of  laws,  318,  320,  398,  402,  465-6 
CHARACTER 

debased  by  private  monopoly,  99-100 
CHARGES.     (See  RATES) 
CHARTER 

of  city  not  a  contract,  390 

freehold  charters.  272,  280,  415-426,  431,  435-8 

see  HOME-RULE  (7)  (9)  (12) 
of  San  Francisco,  229.  279,  419-421,  438 
direct  legislatn,  419 
pub.  ownrshp,  420 
civil  service  reform,  420-1 
of  Greater  New  York,  280,  452 
model,  Nat'l  Muulc.  League's  plan  for,  228-9 
CITIES.     (See  HOME-RULE,  PUB.  OWNERSHIP,  D.  L.,  etc.) 
rapid  growth  of,  7,  8 
concentration  of  wealth  in,  9 
problem  of,  9 

eubjectn  to  legislature,  387,  390 

ought  to  be  free  and  independent  in  respect  to  local  business,  10 
Inherent  right  to  local  self-govt,  393 
dual  nature  of.  392,  412 
franchises  given  to,  not  contracts,  390 
charters  of,  not  contracts.  390 
suggested  legislation,  516-522 
CITIZENSHIP 

Improved  by  public  ownershp,  156 
high  wages  paid  by  pub.  plants  to  improve,  250 
CITY  COUNCILS 

working  libraries  for.  190-1 
CIVILIZATION.     (See  PROGRESS) 

one  test  of,  is  advance  of  co-operation,  210 
CIVIL  SERVICE,  MERIT  SYSTEM  OF.     (Chap.  IV,  469-473,  536) 

1.  necessary  to  reliable  public  ownership,  18 
necessary  to  true  municipal  liberty,  428 

pub.  ownership  likely  to  create  demand  for,  18,  157-8,  216-251.  471 
proof  from  Chicago,  251,  from  Detroit,  Wheeling,  etc.,  157-8 
direct  legislation  will  help,  471 

has  done  so  In  Switzerland,  350 
Boston,  536 

San  Francisco,  420-1,  536 
Baltimore,  536 

Chicago  and  Detroit,  471,  473 
Mass.  and  the  Federal  Government,  473 
necessary  to  due  efficiency,  471,  472 
economic  value  of  merit  system,  471 

Brooklyn  Navy  Yard,  471 

Carroll  D.  Wright's  opinion,  471 
helps  to  abolish  partisanship,  471 
method  of,  469,  471,  472,  473 

death  payments,  pensions,  old  age  and  accident  relief,  etc.,  473 
references,  473 

2.  evils  of  spoils  system.  470 

financial,  political  and  moral,  470 

inefficiency,  471 

▼lolation  of  labor's  rights,  471-2 


INDEX  OF  SUBJECTS.  545 

CIVIL  SERVICE,  MERIT  SYSTEM  OF— continued 

devt'lops  partisanship  and  places  it  above  patriotism,  471 

treats  public  offices  as  private  property,  470,  472 

fills  offices   with   those  who   have   "pull"  instead  of  those   who   have 

merit,  472 
converts  offices  into    bribes    and    rewards    for    corrupt    carrying    of 

elections,  472 
makes  public  officers  vassals  of  party  and  bosses,  472 
burdens  executives   with  peddling  of  offices  instead  of   leaving  them 

free  for  statesmanship,  472 
contrast  between  spoils  system  and  merit  system,  472 
3.  merit  system  adopted  in  England,  502 
COAL  COMBINE 

extortions  of,  32 
COMBINES.     (See  TRUSTS  AND  COMBINES) 
COMMON  LAW 

private  monopoly  void  by  settled  principles  of,  16.  40.  41 
CONGESTION 

of  population  in  cities,  7,  8 
of  wealth  and  power,  91,  3 

dangerous  to  free  institutions,  92-3 

(Opinions   of    Chief   Justice    Sherwood,    Senator   Hoar   and   Daniel 
Webster) 
CONGRESS,  COMPOSITION  OF,  337-8,  356 
CONSENT.  LOCAL.     (See  FRANCHISES:  HOME-RULE  (13) 
CONSTITUTIONAL  PROVISIONS 

limiting  legislative  power  over  municipalities,  392,  397,  431  table 
home-rule  amendments,  409-410,  415 

freehold  charter,  amendments,  415-425,  431,  435-8,  508-511  full  text 
suggested  forms,  516  et  seq. 
forbidding  special  legislation,  422-3.  431  table.  432-4,  522 
as  to  local  consent  to  and  power  of  granting  franchises,  431  table,  434. 

436,  522 
on  public  ownership,  431  table,  434,  436,  448 

suggested  forms,  518  et  seq. 
on  direct  legislation.  269.  271,  282-3,  456.  505-8  full  text 

(See  HOME-RULE  (15),  DIRECT  LEGISLATION  (D) 
So.  Dakota,  282-3,  457,  505 
Oregon,  283.  506 
Utah,  283,  506 
suggested  forms,  516-7 
submission  of,  to  the  people,  273-5.     See  D.  L.  (C> 
CONTRACT  SYSTEM 

inferior  to  direct  employment,  143  n,  542 
Washington  experiments,  542 
CONTROL 

the  essence  of  ownership,  17 
CO-OPERATION 

the  benefits  of  monopoly  come  from  the  co-operative  element  in  it.  lOiH 
pub.  ownershp  a  step  toward  complete,  167 
CO-OPERATIVE  BUSINESS 

may  be  encouraged  by  taxing  it  at  specially  low  rates,  527 
CO-ORDINATION 

of  industries  cannot  be  complete  except  under  public  ownership,  141,  142  n 
examples  of,  142-3 
CORRUPT  PRACTICES  ACT 

English,  makes  political  success  depend  on  honesty,  501 

fraud  forfeits  offices,  500-1 
our  acts  much  less  eftective,  501  n 
COST.     (See  WATER,  GAS,  ELEC.  LIGHT,  ST.  BYS.,  TELEPHONE,  etc.) 
does  not  determine  charges,  gas,  22,  electric  light,  25-27, 

1.  of  water  supply,  123  table 

of  operation  in  various  water  works,  21 
withholding  data  of  (water  co.'s),  22 

2.  of  electric  light,  25-27,  523 

of  full  arc.  testimony  of '  Pres.  Marks  of  Phlla.,  26  n 

3.  of  operating  .street  railways,  tables,  etc.,  28-30,  60  n.     Pres.   Vreeland  on 

elements  of  cost  in  New  York,  524 
electric  light  plants.  129-135 
ffffS  works,  22-24,  59,  127,  523 
telephone  exchanges,  117-119,  128 

4.  of  constructing  gas  plants,  43 
"  street  railways,  horse,  electric,  etc.,  48-55,  51-2 

cable,  49,  50,  52 
L.  Rds.,  48.  53-4 
electric  light  plants,  62 
telephone  lines,  117-119 

5.  false  statements  of  cost  of  operation  and  construction,  59-62 
suppressn  of  facts  (see  FALSE  STATEMENTS  and  SUPPRESSION)  see 

(1)  above 
DEATH 

aid  to  families  of  municipal  employes,  473 
35 


546  INDEX    OF    SUBJECTS. 

DEBT 

neither  taxation  nor,  nec'y  in  securing  public  ownship,  184 
DEBT  LIMIT 

municipal,  437  table,  438 

bonds  for  revenue  producing  utilities  not  to  be  counted,  229,  519,  539 
DECISIONS 

Hamilton  gas  case,  178 

Mass.  fuel  yard,  175 

Mich,   "internal"  improvmts  (Detroit  st.  ry.  case),  176-7 

Mich,  and  lud.  inherent  right  of  local  self-govt,  393-6 

Bustaining  reduction  of  rates  by  law,  182-3 

if  rates  yield  any  profit  it  is  suft,  182 
CO.  can't  claim  rates  suft  to  yield  profit  on  fictitious  capital,  182 
city  may  establish  gas  or  electric  works,  etc.,  of  its  own,    altho    it    has 
previously  given  a  franchise  to  a  private  co.,  443,  445 
DEFIANCE  OF  LAW 

Street  railway  battles  and  destruction  of  property,  81 
attempted  nullification  of  the  3  cent  fare  ordinance  in  Detroit,  82 
Btreet  railways  preventing  enforcement  of  law  in  Cleveland,  82 
violation  of  tax  laws,  Cleveland  street  railways,  82 
St.  Louis  and  Kansas  City  street  railways,  82-3 
Chicago  street  railways  assesst  at  2  or  3  per  cent.,  84 
Boston  electric  light  co.'s,  85 
lawless  gas  co.'s.  Bay  State  gas  broke  a  dozen  statutes  and  the  common 
law,   84 
Cleveland  gas  co.  defying  ordinance  reducing  rates,  84 
escaping  reduction  by  manipulating  pressure,  84-5 
electric  light  co.'s,  85 
resistance  to  laws  and  ordinances  reducing  rates  a  common  practice  of 

municipal  monopolies,  84 
other  great  law  breakers,  the  Kail  Trust,  telegraph  monopoly,  Bell  Tele- 
phone Co.,  railroads,  sugar  trust,  86-7 
Standard  Oil  monopoly  (summary  of  atrocities),  87-89 
DEFINITIONS 
monopoly,  19 
public  ownership,  17-8 

direct  leglslatn,  initiative,  referendum,  etc.,  257-8,  303 
DEMOCRACY 

private  monopoly  destructive  of,  92-3,  100 

private  monopoly  leads  to  congestn  of  wealth  and  power  in   few  hands 
which   is  dangerous  to  free  institutions,   (opinions    of    Chief    Justice 
Sherwood.  Senator  Hoar,  nnd  Daniel  Webster),  93 
inconsistent  with  law-making  bv  pnal  vote  of  delegates,  2.>5-6 
requires  direct  legislation,  258-203,  288,  294,  296-8,  352,  370 
DESPOTISM 

private  monopoly  Is  actual  or  potential,  16,  40 
no  legislature  a  right  to  grant  a  monopolistic  franchise,  41 
DESTRUCTION 

by  gas  co.'s  of  Inconvenient  report  of  investigation,  22  n 
of  public  documents,  63 

of  life  and  property  by  carelessness  of  monopolists  aud  illtreatmt  of  em- 
ployees, 66-8 
of  property  by  street  railway  battles,  etc.,  81 
of  rival  properties  by  oil  trust,  87,  88 

of  public  documents  by  monoprtlists  adversely  affected  bv  them,  63 
In  strikes,  94-8  (st.  rys.),  166  table 
DETROIT 

street  railway  case,  176-7 
DEVELOPMENT  (see  PROGRESS,  GROWTH) 
of  public  ownership,  203-210 
five  stages  of  (Seligman),  210 
of  morality,  favored  by  pub.  ownrship,  172 
of  manhood,  favored  by  pub.  ownrsliip,  178 
of  liberty,  favored  by  pub.  ownrship,  173,  158-9,  200  (8> 
of  democracy,  favored  by  pub.  ownrship,  173-4 
of  unity,  favored  by  pub.  ownrship,  175 
of  aesthetic  life,  favored  by  pub.  ownrship,  171 
of  pure  govt,  favored  by  pub.  ownrship,  153-5,  156,  157-8,  159 
of  pure  govt,  favored  by  direct  leglslatn,  306-314,  350.  352 
DIFFUSION 

of  wealth  and  power,  opposed  by  private  monopoly,  90-3 
favored  by  public  ownershp,   168-9 

and  by  progressive  taxatn  of  incomes,  etc.,  169 
favored  by  direct  leglslatn,  258,  259-263,  296-8 
DIRECT  LEGISLATION.     (Chap.  II,  255-386) 
(A)  in  early  times  leglslatn  was  by  whole  body  of  citizens.  2.") 
growing  size  of  community  caused  change  of  method,  255 
leglslatn  by  final  vote  of  delegates,  255 

establishes  mastership  and  aristocracy,  255 
opposed  to  democracy  and  popular  sovereignty,  255-6 
problem,  to  keep  benefits  of  representative  system  and  eliminate  the  evils 
of  unguarded  representation,  256 


INDEX  OF  SUBJECTS.  647 

DIRECT    LEGISLATION— conttnHff/ 

remedy,   u  representative  systrni  guarded  by  initiative,   referendum  and 

recall,  256-7 
definitions,  257-8,  303 
enables  the  people  to  start  or  stop  legislatn  at  will,  258 

veto  laws  they  don't  want,  2r)8,  303 

secure  laws  they  do  want,  258,  303 
gives  us  the  service  of  our  legislators  but  frees  us  from  their  mastery,  259 
makes  it  unncc'y  to  mob  or  threaten  councils  in  order  to  get  them  to  do 

the  people's  will,  542 

(B)  necessary  to  self-govt,  288,  2J>4.  352 

self-govt  does  not  consist  merely  in  choosing  some-  one  to  govern  von 

259-260 
duratn  of  a  lease  of  power  don't  determine  its  character,  260 

It  may  be  despotic  tho  its  term  is  short,  260 
he  is  sovereign  whose  will  is  in  control,  261 
the  people  not  continuously  and  effectively  sovereign.  261 

but  only  intermittently,  spasmodically,  and  to  a  large  extent  in- 
effectively, 261 

architect  illustratn,  262 

well  to  take  counsel  of  legislative  agts,  but  not  place  them  above 
the  people's  reach,  262-3 

(C)  referendum  in  use  In  America,  ■26;i-278 

I.  already  a  fundamental  fact  in  our  govt,  263 

all  we  need  is  an  extension  of  fundamental  principles.  264 
town  govt.  264-269 

people  cling  to  it  even  after  town  grows  very  large,  '200 
Brookline,  266-7 

wins  out  against  county  system  (Illinois),  268 
opinions  of  Jefferson,  Flske,  and  Bryce,  264-."> 
constitutn  making,  264,  369  n 
early  govt  of  Mass.,  264 
large  number  of  referendal  clauses  in  our  laws,  269,  30!)  n 

illustratns  from  la.,  269,  '271.  444,  4.")6 
may  be  used  thruout  legislation  if  legislative  agts  so  choose.  271 
only  change  nec'y  is  to  put  the  OPTION  in  the  PEOPLE,  271 
small  percentage  of  voters  in  a  New  Eug.  town  may  initiate  measures 
and  bring  them  before  people  for  decision,  voters  of  cities  should 
have  similar  rights,  542 
II.  Illustratns  of  use  of  referendum,  272-275,  535 
New  Jersey,  Cal.,  N.  Y.,  272 
Boston,  Minneapolis,  272 
Greater  New  York  charter  submitted,  280 
freehold  charters,  272,  280 

purchase  or  erectn  of  water,  gas,  electric  plants,  etc.,  272 
grant  of  street  franchises,  272,  535 
New  Orleans,  272-3 
Many  matters  of  local  Interest  are  submitted  to  the  local  electors, 

369  n 
fixing  county  seats,  etc.,  273 
local  option  on  liquor  question,  etc.,  273 

constitutional  amendmts,  submitted  (1896),  Mass.,  N.  Y.,  273 
Minn.,  Mo.,  Neb.,  Colo.,  Id.,  274 

Jilont.,  Cal.,  La.,  Tex.,  Ark.,  Ga.,  Dak.,  "Wash.,  2t.-. 
Mich.,  275 
Boston  referendum  (1899),  535 
III.  generalizatns  established  by  experience  with  ref.,  275-S 
dlscriminatn  in  voting  on  measures,  275 
independence  of  party,  275,  340 

ungruarded  representatu  doesn't  represent,  276,  354,  358-9 
referendum  wisely  conservative,  276 
defeats  ambiguous  measures,  276 
and  those  involving  jobs  or  tricks,  276 
automatic  disfranchisemt  of  the  unfit  in  many  cases,  276,  323 
referendum  readily  used  by  our  people,  277 

controls  both  ends  of  tho  ordinary  scale  of  legislatn  and  is  open 

to  engagemts  at  intermediate  points,  277-8 
no  trouble  where  it  controls,  but  heaps  of  trouble  elsewhere,  278 
shown  itself  the  best  legislative  method,  278 
wisdom  requires  extension  of  its  use,  278 
national  legislatn  not  included  in  this  discussion,  277  n.         _ 
(D)  movement  to  perfect  rep.  system  by  fuller  provisn  for  D.  L.,  279-298 
I.  accomplished  facts.  279-283,  .^05-6 

San  Francisco's  charter,  279,  419,  507 
Alameda,  Seattle,  etc..  279 
freehold  charter  provisns,  280,  508-511 

Detroit  charter  law,  507  '  ,  •      ,  * 

laws  requiring  referendum  on  franchises,  pub.  ownership,  issue  of 
bonds,    etc.,   280,    442.   444,   448,   449,     456-7,     522;     see     HOME- 
RULE   (15) 
laws  providing  for  popular  initiative  on   franchises,   pub.   o.,   etc.,. 
280,  456  (Bee  HOME-RULB,  15) 


548  INDEX    OF    SUBJECTS. 

DIRECT    LEGISLATION— continued 

Nebraska's  municipal  D.  L.  law,  280-1,  457 
■  Arizona's  municipal  D.  L.  law,  282 
So.  Dakota's  D.  L.  const,  amendmt,  282-3,  457,  505 
Oregon's  D.  L.  const,  amendmt,  283,  505 
Utah's  D.  L.  const,  amendmt,  283,  506 
II.  eflforts,  284-6 

bills  introduced  In  many  states,  284-5 
some  passing  one  house  or  both,  284-5 
III,  the  vising  tide  of  thought,  286-296,  369  n 

Dicey,    Winchester,    Moses,    Freeman,    McCrackau,    Sullivan,    Pom- 

eroy,  286 
popular  movemt  largely  due  to  Sullivan  and  Pomeroy,  287 
large  part  of  the  press  favorable  (over  3000  papers  and  magazines), 

287 
a  non-partisan  movemt,  287 

men  and  platforms  of  all  parties  for  it,  287 
all  who  believe  in  govt  by  the  people  favor  extension  of  the  i-efer- 

endum,  288,  294,  352,  360 
only  shortsighted  plutocrats  and  politicians,  and  persons  unwilling 

to  trust  the  people,  oppose  It.  288.  360 
Wanamaker,    Pingree,    Bryan,     St.     John,     Lloyd,     Ely,     Howells, 
Sheldon,    Abbott,    Lorrlmer,    Mills.    Conwell,    Gladden,    and    50 
other  eminent  men  and  women  registered  in  favor  of  it,  289,  290 
opinions,  291-296 

Wm.  Dean  Howells,  291 
Rev.  Lyman  Abbott,  291 
Hon.  John  Wanamaker.  291 
Pres.  Francis  E.  Willard.  291 
Henry  D.  Lloyd,  201 
Hon.  Wm.  J.  Bryan,  292 
Pres.  Samuel  Gompers,  292 
Lord  Salisbury,  292 
-Mayor  Jones,  368,  535 
Rev.  B.  Fay  Mills,  292     • 
Prof.  Lecky,  293 
Prof.  Geo.  D.  Herron,  293 
Pres.  Geo.  A.  Gates,  293 

J.  St.  I.oe  Strackey  (Ed.  Loudon  Spectator).  293 
Andrew  Jackson,  293 
Gov.  Pingree,  293 
Prof.  Geo.  Gunton.  293 
Hon.  John  G.  Woolley.  294 
Thos.  Jefferson,  295 
Abraham  Lincoln,  295-0 
Farmer's  Alliance,  Labor  Unions,  etc.,  289 
American  Federation  of  Labor,  289,  368 
Christian  Endeavor,  Epworth  League,  etc.,  289 
Social  Reform  Union,  368 
Buffalo  Conference,  368 

D.  L.  sentlmt  as  indicated  by  Ohio  vote  (1899),  535 
the   referendum   movemt   is   part   of   a     world    movemt     toward    liberty, 
democracy  and  peace,  296-8 
difEusiOn  of  power  thru  D.  L.,  298 
few  wars  if  the  people  voted  them,  298.  369 
(E)the  practical  details,  299-303 

analysis  of  D.  L.  law  or  amendmt,  299-300  (see  516-7) 
obligatory  ref.  the  better  form  ultivintrly,  301,  see  257  n. 
more  economical,  301 
more  secret,  301 

less  affected  by  human  inertia,  302 
optional   form   best  at   start   except  as  to    street    franchises,     const, 
amendmts,  etc.,  302 
^F)  reasons  for  direct  legislation,  303-362 

1.  progress,  It  will  open  the  door  to  all  other  reforms  as    fast    as    the 
people  want  them,  303-6 
words  of  Buckle  and  Wendell  Phillips,  305 
it  will  give  the  sovereign  people  the  power  of  voluntary  movemt, 

305 
prevent  the  corporatn   ganglia    from    paralyziug    the    progressive 

muscles  and  the  conscience  of  the  body  politic,  305 
separatn  of  measures  aids  reform,  305-6 
experience  of  Switzerland,  344,  see  below  (F),  20 
•2.  purify  govt.  306-314,  350,  352 

destroy  the  concentratn  of  trmptatn  resulting  from  the  power  of  a 

few  to  take  final  action.  306 
Broadway  Surface  Franchise,  306 
Phlla.  gas  lease,  306-7 
It  won't  do  to  leave  the  referendal  option  with  the  legislators,  307 
they  submit  questns  on  which  they  are  acting  honestly,  307 
but  never  submit  a  franchise  steal,  307 
,  Reading  Terminal  bribery,  308 

>  corporatn  voting  $100,000  to  buy  Chicago  council,  308 


INDEX  OF  SUBJECTS.  54& 

DIRECT   LEGISLATION— coMfjjjKed 
prices  of  legislators,  308 
citizens  too  numerous  to  buy,  30S 

referendum  greatly  dilutes  tlie  power  of  bribery,  309,  310  n 
lobbying,  log-rolling,  and  blackmailing  undermined,  310 
class  legislatn  checked,  311,  344 
separatn  of  legislatn  from  the  people    (a    great    cause    of    fraud) 

abolished,  492 
private  monopoly  in  law-making  destroyed,  311,  353 

3.  demagoguery.   and  polit.   influence  of  employers    over    employees    di- 

minished, 312 

4.  power  of  rings,  bosses  and  monopolists  crippled,  313,  535 

5.  partisanship  weakened,  313-4,  311 

6.  elections  simplified,  314-316 

easier  to  vote  on  a  measure  than  on  a  man  and  a  platform,  314-5 
disentangling  of  issues  very  important.  315 
mixture  of  issues  fatal  to  self-govt,  313-7 
or  real  representatn,  315-7 
Mr.  Mofifett's  illustratn,  316 

7.  simplify  and  dignify  the  law,  317-321 

multitudinous  unnec'y  laws,  318-320,  466,  539 

N.  J.'s  law  factory  compared  with  Swiss  records,  318 

Gov.  Grigg's  views,  318,  319  n 

Senator  Bradley's  opinion.  325 

Massachusetts,  466,  539 
overproduction  a  sign  of  low  developmt,  321 

legislatn  is  in  the  flsh  epoch,  321 
dignity  of  law  greater  under  D.  L.,  321 

examples  of  undignified  legislatn,  321 

8.  increase  respect  for  law  and  aid  its  enforcement,  321-2 

9.  elevate  professn  of  polities  and  bring  men  into  it,  322 

10.  develop  civic  patriotism,  323-4 

increase  the  vote  and  interest  of  better  citizens,  323 
and  eliminate  in  large  degree  the  votes  of  the  less  intelligent,  323-4. 
276 

11.  elevate  the  press.  325,  345 

12.  educate  the  people,  325-7 

D.  L.  the  people's  university,  325 
Switzerland,  326 
ancient  Athens,  326 

13.  develop  morals  and  manhood,  327 

14.  favor  stability— the  social  fliy-wheel,  327-334 

give  discontent  a  peaceful  vent,  328-9 

tend  to  prevent  strikes.  329 

people  not  so  apt  to  find  fault  with  what  they  do  themselves,  330 

contrast  between  disgust  manifested  toward  legislative  bodies,  and 

quiet  acquiescence  in  i;opular  verdict  at  the  polls,  330-4 
peace  favored,  369,  298 

wars  few  if  people  voted  them.  298,  369 

no  standing  army  allowed  in  Switzerland,  369  n 
no  longer  nec'y  to  mob  or  threaten    councils    to    make    them    do 

justice,  542 

15.  large  economics  resulting,  334 

stopping  jobs,  franchise  steals,  etc.,  334 
save  much  expense  in  printing  laws,  334-5 
lower  taxatn,  346 

16.  identify  power  with  public  interest,  335-6 

17.  give  labor  its  true  weight  in  govt,  336-9 

labor's  interest  in  the  referendum,  measureless,  336 
it  is  par  excellence  the  workingman's  issue,  336 
labor  unions  recognize  its  value,  336 

Amer.  Fed.  of  Labor.  .337 
no  real  representatn  of  labor  in  many  legis.  bodies,  337-9 
60  and  70  per  cent  of    legislatures    and    congresses    are    lawyers, 

largely  corporatn  attorneys,  337-9,  356 

18.  benefit  all  classes — the  people's  issue,  340 

not  a  class  measure,  nor  a  party  measure,  340 

19.  merely  an  application  of  established  principles  of  law  of  agenc.v,  340-2 

we  call  our  legislators  "agts,"  but  they  are  not,  341 
and  never  will  be  till  the  people  claim  the  principal's  rights  of  in- 
struction and  veto,  revocatn  and  discharge,  342 

20.  experience  proves  value  of  I>.  L.,  342-352 

Canada  and  England,  343 
Switzerland,  343-352 

formerly  cursed  with  evils  of  unguarded  rep.  system,  343 

class-rule,  monopoly,  corruptu,  etc..  344 

adopted  direct  legislatn,  344 

and  it  has  dethroned  the  politicians  and  monopolists,  345 

abolished  bribery,  class-law,  and  machine  politics,  345 

rid  the  bod.v  politic  of  its  vermin.  345 

destroyed   the  power  of  legislators   to   legislate  for  p;-rsoual   ends, 
845 


660 


INDEX    OF    SUBJECTS. 


DIRECT    LEGISLATION— continued 
elevated  the  press,  345 
given  great  impetus  to  wise  reform,  346 
reduced  taxatn,  346 

and  changed  its  incidence  from  poverty  to  wealth,  346-7 
direct  progressive  taxes,  in  place  of  indirect  taxes,  346 

Indirect   taxatn   is    '•plucking    the     goose     without    making    It 

cackle,"  347 
Swiss  pluck  the  goose  where  the  feathers  are  thickest,  347 
Income  tax,  347 
monopoly  charges  greatly  reduced,  352 
public  ownership  advanced,  347 

telegraph,  telephone,  express,  etc.,  347-8 
railroads,  347,  230-1 
great  success  of  referendum  fully  attested,  348 
deeply  rooted  now  in  hearts  of  whole  people,  340 
favored  now  even  by  those  who  opposed  its  adoption,  349 
objectns  proved  baseless  by  experience,  349 
D.  L.  economical,  pure,  non-partisan,  349 
proved  a  drag  on  hasty  legislatn,  349 
fatal  to  corruptn  and  extravagance,  350 
favors  merit  and  good  business  principles,  350 
excellent  officials,  350 

legislators  piactically  a  life  tenure  thru  repeated  re-clectn,  350 
people  can  reject  a  law  and  retain  the  lawmaker,  350-1 
decorous  debates,  351 
proportional  rep.  being  widely  adopted,  351 

21.  high  authority  in  favor  of  D.  L.,  352,  289-291,  see  above  (D  III) 

Jefferson,  Lincoln,  295 

22.  drift  of  public  sentimt  strong  toward  D.  L.,  352,  see  above  (D  III) 

23.  trend  of  events,  i)rogress  of  civilizatn,    evolutn    of    democracy,    352, 

370,  296  above 

24.  brotherhood,  law  of  love,  religion  and  ethics,  352 

25.  D.  L.  essential  to  self-irovt— the  key  to  the  whole    situatii.    288,    294, 

259-263,  352,  360 
private  monopoly  of  law-making,  353,  311 
unguarded   representative  system  does  well   In    early    times    with 

homogeneous  society,  353 
but  in  our  complex  society  delegate  law  cannot  be  relied  on,  354 
"representation  does  not  represent,"  354,  259 

present  system  not  entitled  to  the  name  "representative."  259 
large  masses  of  voters  have  no  representative  in  the  halls  of 

legislatn,   .354 
parties  not  fairly  represented,  gerrymandering,  etc.,  354-5  table 
classes  not  fairly  represented.  356,  337-9,  see  (17)  above 
1  Ideas  not  fairly  represented,  356-7 

many  questns  arise  after  electn,  357 

the  people  may  change  their  views  on    campaign    issues    after 

election,  357 
delegate's  self-interest  may  deflect  his  vote,  357 
even  honest  delegates  many  times  fail  to  represent  the  people 

because  they  cannot  tell  what  the  people  want,  358-9 
Kittlnghausen's  indictment  of  the  representative   (or  Hii.sr(  pre- 
sentative)  system,  359  u.    276 
proi>ortional   rep.   will   remedy   .some  of  these  defects  but  by   no 

means  all,  357  n 
the  breakdown  of  legislatures  (Harper's  Weekly).  .'{(MJ 
the  basic  questn,  36() 

references,  D.  L.  Record,  etc.,  360.  378,  385 
the  dumb  people  and  the  parties,  361-2 

the  dumb  man  and  the  cooks  with  their  complex  bills  of  fare— the 
whole  menu  or  none  of  it,  .362 
<G)  summary  statement,  362-370 
(H)  objectns,  q.  v.,  370-386 

(p  D.  L.  an  essential  element  in  true  plan  of  pub.  ownershp,  18,  190 
(J)  nec'y  also  to  true  municipal  home-rule.  411,  428 
(K)  correlative  with  proportional  rep'n,  474 

and  preferential  voting,  484 
(L)  suggested  forms  for  D.   L.   laws  and  const,    amendnits,    516-7,    compare 

280-3,  505-6 
DISCRIMINATION 
In  gas  rates,  87 
in  price  of  oil,  88 
In  railroad  rates,  88 

Btreet  railway  passes  for  ward  heelers,  etc.,  68 

free  water,  gas,  electricity,  telephones,  etc.,  for  men  of  influence,  69 
against  newspapers  too  critical  of  telegraph  monopoly.  69,  81  n 
against  even  TI.  S.  business  in  favor  of  speculative  messages,  etc.,  81  u 
less  under  pub.  ownershp,  149 
DISTRIBUTION 

of  wealth  in  U.  S.,  91-2 

of  stock  among  influential  people,  70,  75.  76 


INDEX  OF  SUBJECTS.  561 

DISTRICT  SYSTEM  (see  PROPORTIONAL  REP.) 
gives  dominant  party  undue  power,  476,  355 

practk-ally  disfranchises  large  masses  of  citizens,  476,  355  table,  and  note 
Garfield's  statemt,  476  n     • 
gerrymandering,  476-7,  354 

N.  J.  case  and  Judge  Gasklll's  exposure  of  It,  477,  354 
In  Ky.  a  democrat  weighs  as  much  as  7  repubs.,  478 
In  Me.  a  democrat  weighs  nothing,  478 
lllustratns  of  disproportional  representatn,  478-481 
ECONOMY 

of  public  ownrshp.  16  reasons  for,  136-141 
objectn  ansd,  242-5 
water-works,  192-4,  195 
street  railways,  198 
telephones,  117  * 
direct  omplovmeut  cheaper  than  contract  system,  143  n,  542 
direct  leglslatn  favors,  334,  349-350 
civil  sen'lce  reform  favors,  471 

Inefficiency  and  wastefulness  of  spoils  system,  471 
EDITORS  (see  PRESS) 

liberated  from  monopoly  pressure  by  pub.  ownshp,  159 
EDUCATION 

aided  by  direct  leglslatn,  325-7 
EFFICIENCY  (see  ECONOMY) 

ELECTIONS     (see     AUTOMATIC     BALLOT,      PROPORTIONAL      REPRE- 
SENTATION.  PREFERENTIAL  VOTING) 
simplified  by  direct  leglslatn,  314-316 

easier  to  vote  on  a  measure  than  a  man  and  a  platform,  314-» 
disentanglemt  of  issues  very  important,  315 
Mr.  Mofifett's  lUustratn.  316 
plurality  rule,  unjust.  484  (see  PREFERENTIAL  VOTING)    ' 
by  minority  choice,  484-6 

presidents,  governors,  mayors,  etc.,  484-5 
frauds  in,  492.  see  POLIT.  CORRTPTN  (1) 
systematic  bribery  of  voters,  496 
assessmts  of  officeholders  and  candidates,  496 
disputes  as  to,  judicially  decided  (Eng.),  500 
ELECTRIC  LIGHT  (see  LEGISLATIVE  FORMS) 

1.  cost  and  charges 

excessive  charges  for,  b.v  private  co.'s,  24-7 

comniercial  rates  of  public  plants  about  half  the  private  rates,  24-5 

chaos  of  private  rates,  25-7 

e.  g.,  St.  Louis  pd.  $75.  while  Boston  pd.  $237  for  same  service,  25 
heavy  losses  to  taxpayers  by  extortns  of  the  co.'s,  25-7 
cost  per  1000  watts,  25 
cost  per  standard  arc.  Pres.  Marks'  testimony.  26 

report  of  comm.  of  Boston  Council,  26  n.  228 
charges  not  fixed  by  cost  of  productn,  but  by  ratio  of  pub. 

spirit  to  the  power  of  monopoly  in  the  control  of  govt,  27 
cost  in  public  and  private  plants  compared,  128  table,  135 

H.  A.  Foster's  figures,  243-5 

M.  J.  Francisco,  245-7 
cost  before  and  after  i)ub.  ownshp  in  same  place,  121)  table,  250 
Peabody,  Aurora,  Elgin,  130 
Detroit,  Allegheny,  131 
Fairfield,  Bay  City.  132 
Jacksonville,  1.32.  523 
Jamestown,  Lansing,  132 
Springfield  (111.).  Logansport,  133 
present  cost  In  public  plants.  134  table 
Chicago's  case,  250-1 

2.  profits  of  private  co.'s  exorbitant.  Boston.  Philadelphia,  New  York,  etc.,  36 

3.  poor  service  of  private  co.'s,  (>4-6  (compare  151) 
dangerous  wires.  66 

4.  free,  to  men  of  influence  (discriniinatn),  69 
frauds  of  co.'s.  electrical  politics,  etc.,  73,  74 
omitting  important  facts  from  investigatn,  61 
misrepresentatns  of  M.  J.  Francisco.  245-7 
co.'s  defiance  of  law.  85 

stocks  material  for  gambling,  90 

5.  lighting  monopolies  tend  to  non-progressiveuess,  94 

low  character  product,  99-100 

and  undemocratic  congestn  of  wealth  and  power,  90-3 

6.  conipetn  in.  impracticable,  101 

regulatn  a  failure  where  most  needed.  106-112 

experience  of  Mass..  110-112.  compare  Haverhill  case,  523,  539-542 

7.  economy  of  public  ownership,  16  reasons  for  it,  136 
savings  b.v  public  ownership,  144 

co-ordinatn  with  other  industries.  142,  143 

companies  confine  their  attentn  to  "paying"  districts,  pub.  ownership  puts 

wli-es  and  lights  where  they  are  needed,  145-6 
Foster's  admissns,  145,  242 
service  better  under  public  ownership.  151  (compare,  64-G) 


552  INDEX    OF    SUBJECTS. 

ELECTUIG  LIGHT— continued 

merit  system  favored  by  public  ownershii),  157-8 
experience  in  Detroit,  157 

in  Cliicago,  etc.,  158  • 

employees  better  treated  under  public  ownership,  101 

8.  methods  of  securing  public  ownershft),  175,  251 

publicity,  183.  251  ,_„  ,_.  „  _„. 

reductn  of  rates  bv  law  to  s(ino<«ze  water  out  of  capltallzatn.  1(9,  isu-.i,  a^si 
taxatn  of  face  and  market   values  of  securities    to    squeeze    out    water, 

17»,  181,  521 
public  ownership  secured  witliout  taxatn  or  debt,  184 

Berlin  contract,  184-5 

Minneapolis  offer,  185 

Des  Moines  offer,  188 

Springfield  contract,  187  # 

9.  satisfaction  with  pub.  ownership,  202 

.   growth  of  pub.  ownership,  205,  530,  Eng. 
10.  municipal  home-rale  as  to  elec.  1.,  431,  436,  462  (see  HOME-RULE) 
constitutional  provisions,  431,  462,  So.  Car.,  448.  Ky.,  449 
statutes  about  franchises  and  pub.  ownership,  436  table,  462  table 
local  consent  and  grant,  436,  443-5,  455,  462  table,  539 
sale  of  franchises  at  auctn,  449-452 
pub.  ownership,  442-9,  539 
referendum,  456,  280-3,  269  (see  STATUTES) 
HOME  RULE  (15);  DIRECT  LEGIS.,  (D) 
suggested  legislatn,  518,  519.  521 
ELEVATED  ROADS,  29,  48,  53,  54,  61 
EMPLOYEES 

llltreatment  of  by  street  railway  co.'s,  95-99 
arbitrary  discharge,  97,  99  n 
faithlessness  of  co.'s,  97 

vestibules  to  keep  motormen  from  freezing,  i-efused,  98 
overwoi'king  of  motormen,  etc.  (accidents  resulting),  67 
long  hours  and  low  wages  caused  by  overcapitalization  and 
struggle  for  dividends  on  water  (Judge  Gaynor's  opinion), 
95,  96,  98  n 
street  railway  strikes— Cleveland,  Brooklyn,  Philadelphia,  etc.,  9.>98 
losses  by  strikes,  166  table 

better  treated  under  public  ownership,  higher  wages,  shorter  hours,  more 
freedom,  Brooklyn  Bridge  railway,  115.  116,  150,  160 
street  railways,  Glasgow,  160 

Huddersfleld  and  Sheffield,  161 
gas  and  electric  works,  161 

labor's  interest  in  pub.  ownership,  161  (summary) 
contrast  Boston  police  and  street  railway  employees,  162 

employees  of  Western  Union  and  English  Postal  Teleg.,  162,  163-4 
employees  of  Western  Union  and  U.  S.  mail  carriers,  162-3,  164-5 
hours  and  wages,  public  and  private,  165  table 
no  costly  strikes  and  lockouts  under  pub.  ownshp,  166 
under  pub.  ownship  employes  are  eo-partuers,  160,  162 
resolution  of  Amer.  Fed.  of  Labor  on  pub.  ownshp,  165,  229 
high  wages  pd.  by  pub.  plants  to  Improve  conditn  of,  250 
better  off  under  direct  pub.  employmt  than  under  contract  system,  542 
old  age  and  accident  relief,  473 
ENGLAND 

public  telegraph,  162,  163-4,  199-202 

For  analysis  see  PUB.  OWNSHP  (H.  3) 
growth  of  public  ownship  in,  188-9,  530 
ENLARGEMENT  OF  FACILITIES 

under  public  ownership,  145-6 
EXPERIENCE 

proves  evils  of  private  monopoly  (see  MONOPOLY) 

shows  political  corruptn  to  be  largely  due  to  corporate  pressure  and  the 

separatn  of  legislatn  from  the  people,  492 
proves  advantages  of  public  ownership  (see  PUBLIC  OWNERSHIP,  I.) 
gas,  125-128 

electric  1.  before  and  after,  129  (see  also  128  and  130-5i 
telephone.  117-9,  128 
water  works,  192-5,  119,  128 
Glasgow's  enterprises,  105-199 
English  telegraph,  199-202 
shows  that  pub.  ownshj)  aids  civil  service  reform,  157-8 
of  U.  S.  and  Switzerland  proves  benefits  of  direct  legislation.  .342-352 

See  DIRECT  LEGISLATION  (C)   (F  20) 
proves  objectns  to  D.  L.  baseless,  .349-351 
generalizatns  established  by.  in  case  of  the  referendum,  275-8 
of  Rochester  with  voting  machines,  489-490  n 

of  England  in  overcoming  political   corruptn,    498.      See    I'OLIT.     COR- 
RUPTN (3) 
"  with  private  and  pub.  telegraph,  199-202 

EXTENSION 

of  facilities,  pipes,  lines,  etc.,  under  public  ownership.  14."»-(! 


INDEX  OF  SUBJECTS.  553 

EXTORTIONS  OF  MONOPOLIES  (see  MONOPOLY) 
FACILITIES 

extension  of,  under  pub.  ownershp,  145-6 
FAILURE 

alleged,  of  pub.  plants,  245-7 
FALSE  STATEMENTS  AND  SUPPRESSION  OF  FACTS,  22.  58-fi3    70    79 
82-3,  24.J-8  (compare  152) 
Bay  State  gas,  58,  79 

suppressn  of  vital  facts  by  gas  counnlssu,  59,  79 
suppressn  by  gas  co.'s  of  the  N.  Y.  Sen.  Corn's  report,  1885,  22  u 
suppressn  of  facts  by  niutilatn  or  theft  of  public  documts,  63 
withholding  data  of  operating  expenses,  etc.  (water  co.'s),  22 
false  statenits  of  cost  of  making  gas,  59 
false  statemts  of  cost  of  constnictu  and  operatn,  street  railwavs,  water, 

electric  light,  60-2 
statemts  of  value,  55 
returns  to  state  officers,  58,  79,  82-3 
concealing  profits,  152 

charging  constructn  cost  to  operating  expenses,  61 
refusal  of  street  railway  co.'s  to  give  any  aid  in  iuvestigatn,  83  (St.  Louis), 

84  (Chicago) 
refusal  to  produce  books  In  court  or  legislative  iuvestigatn,  62,  63 
burning  account  books  (oil  trust),  527 
perjury,  theft  and  mutilatn  of  public  records.  63,  89 
Francisco's   misrepresentatns  as   to   alleged  failure  of   pub.    plants,   etc., 

245-7 
fake  report  of  Mass.  ga^nvestigatn  written  by  gas  attorney,  247 
freak  pamphlet  by  a  street  raihvaj'  manager,  247-8 
FARES  (see  STREET  KAILAVAYS,  RATES) 
FARMERS 

no  adequate  representation  in  Congress,  356 
FARMER'S  ALLIANCE 

favors  direct  legislation,  289,  337 
FENDERS 

cushioned  fenders  not  adopted,  cheaper  to  maim  people,  68,  93 
FICTITIOUS  VALUES  (see  OVERCAPITALIZATION) 
FORMS  (see  LEGISLATIVE  FORMS) 
FRANCHISES 

grant  of.  to  a  city,  not  a  contract,  390 

local  consent  and  power  to  grant.  431  table,  4.S4.  436  table,  443-446,  448-9, 

453-461.  462  table  (see  HOME-RULE  (13)  (14i 
property  owners  consent  to,  4.57.  459,  460,  462  table 
Bale  of,  at  auction,  449-452 

public  ownership  of.  436,  438-449  (and  see  PUBLIC  OWNRSHPi 
Mass.  law  as  to,  181 
suggested  legislatn,  522 
FRAUD  AND  CORRUPTION.     See  MONOPOLY.  FALSE  STATEMTS,  etc., 
22,  42-63.  69-80,  140-1.     (Compare  153-5) 
watering  stock  and  inflating  capital,  42-57  (see  OVERCAPITALIZATION) 
Broadway  franchise  fraud,  55 

charging  up  new  constructn  to  operating  expenses.  61 
packing  investigatn  committee  with  vassals  of  monopol.v.  61 
omitting  important  facts  from  corn's  report  of  iuvestigatn,  61 
false  statemts  of  cost,  constructn  and  operation,  60-62 
false  statemts  of  value,  55 
false  return  to  state  officers,  58 
concealing  profits.  152 

suppressn  of  vital  facts  by  gas  commissn,  59 

pui-ehase  and  destructn  by  gas  co.'s  of  report  of  N.  1".  Senate  Investigat- 
ing Com.,  1885.  22  n 
refusal  of  co.'s  to  give  aid  in  investigatn,  83.  84 
refusal  to  produce  books  in  court  or  legislative  investigation.  62.  63 
burning  account  books,  527 

mutilation  of  public  documents  by  agents  of  affected  monopolies,  63 
theft  of  public  documents  by  agents  of  affected  monopolies.  63 
fraud  and  corruptn  the  foundation  of  extortn,  70 

and  made  possible  by  extortn,  70 
inflated  constructn  contracts,  7(i.  77 
excessive  rates  and  monopoly  taxes,  70,  79 
exorbitant  salaries,  false  commissions,  etc..  70,  79,  141 
false  statemts,   perjured   return   and  suppressn  of  facts,  q.   v..  58-63,   70, 

79,  82-3 
see-sawing  traffic,   paying  unearned  dividends  or  otherwise  manipulating 

stock  values,  70 
inflating  values  and  securities,  70,  85 
overissue  of  stock,  etc..  upon  consolidation,  or  paying  high  prices  for  the 

consolidating  properties,  78 
distributing  stock  among  influential  people,  70.  75,  76 
giving  free  passes  and  free  service  in  unjust  discriminatn,  70 
effort  of  co.'s  to  spoil  low-fare  experiment  in  Detroit,  82 
scheming  to  wreck  and  capture  ptiblie  plants  or  rival  private  works,  70, 
74-5.  528 


654  INDEX    OF    SUBJECTS. 

FRAUD  AND  COlillWTIOy;— continued 
Mich.  City  electric  plant,  74 
Phila.  gas  and  water  works,  75,  528 
electn  frauds,  492,  537 
buying  voters,  496 
gerrymandering,  495 
assessments  on  officeholders,  496 
buying  U.  S.  Senatorshlps,  89,  537 

bribing  legislators  and  officials,  70.  71-3,  75,  88,  89,  140,  306 
trying  to  bribe  attorney-general  of  Ohio,  527 
dodging  taxes,  82,  84 
bulldozing  employees,  70 

few  cars,  overpressure  of  gas.  undorct'.rrcnt  of  electricity,  etc.,  70,  84,  85 
seeking  to  mislead  and  control  ijublic  opinion  in  private  Interest,   news- 
papers and  colleges,  70 
stealing  inventns  or  suppressing  them,  70 
ruining  opponents  by  expensive  litigation,  70 
unreasonable  rebates  and  ring  contracts,  71,  77-8     ' 
guaranteeing  heavy  rents  or  profits  on  leased  lines,  71,  79,  98  n 
or  leasing  plant  A  to  plant  B  at  a  moderate  rental  in  order  that  a  few 
may   absorb   dividends   that    would    otherwise   go   to   a   large  body   of 
stockholdei-s,   96  (Judge  Gaynor's   letter) 
Pingree  says  street  railways  "owned  council,"  71 

they  tried  to  bribe  the  Mayor  himself.  71 
street  railways  have  controlled  Cleveland,  71 
Broadway  franchise  obtained  by  bribing  iildermen.  71,  306 
Philadelphia's  "trolley  grab"  and  "I{ailway  Boas  Act,"  72 
Philadelphia  gas  lease,  306-7  ~ 

Reading  Terminal,  308 
Boston  street  railway  lobbying,  73 
bribes  for  street  railway  franchises  in  Chicago,  73 
CO.  voting  $100,000  to  buy  Chicago  council,  308 
prices  paid  legislators,  71,  308 
electric  light  co.'s  in  politics,  73-4 
John  Wananiaker's  statemts.  75-6  n,  537 
gas  frauds  and  corruptions 

keeping  stock  in  hands  of  editors,  legislators  and  prominent  business 

men,  where  it  will  do  good,  76 
Philadelphia  gas  lease,  75,  249 
Cleveland  case,  76 
Mass.  Pipe  Line  Co.,  76-7 

Bay  State  Gas  Co.  and  Boston  Gas  Trust.  "The  Beans  Mystery."  77-81 
attack  and  conquest,  "Give  us  your  business  or  we'll  ruin  you,"  79 
frauds  of  telegraph  and  other  monopolies,  81  n 
frauds  of  oil  monopoly,  81  n.  87-9.  !527 
corrupting  oil  inspectors,  etc.,  88-9 
trying  to  bribe  attorney-gen 'i  of  Ohio,  527 
see  STANDARD  OIL  CO. 
less  fraud  and  corruptn  under  public  ownership,  153-5 

It  is  not  public  plants  that  buy  votes  and  maintain  lobbies,  153 
public  ownership  relieves  govt  from  many    corrupting    relatiis'  with 
rich  men  and  giant  co.'s,  154 
changes  interest  of  rich  to  the  support  instead  of  the  destruction  of 
honest  govt.  154 
experience  shows  that  public  ownership  tends  to  diminish  corruption, 

154  (gas) 
high  authority  to  same  effect,  Prof.  Bemis  and  Commons,  154 
Dr.  Shaw,  Prof.  Ely,  Gov.  Pingree.  155.  see  also  214  (Ely) 
Dr.  Lyman  Abbott  and  Dr.  W.  S.  Rainsford,  213,  216 
concnitratii  of  timptatn  resulting  from  law-making  by  flnal  vote  of  dele- 
gates, 300 
less,  under  direct  legislatn,  306-314 

lobbying,  log-rolling  and  blackmailing  undermined,  310 

class  legislatn  checked,  311,  344 

deniagoguery   and   political    influence    of    eniplovers    over    employees 

diminished,  312 
rings  and  bosses  crippled.  .313 
partisanship  weakened,  313-4 
D.  L.  fatal  to  corruptn.  350 

bribery,  class  law  and  machine  politics  abolished,  .345 
power  of  legislators  to  legislate  for  personal  ends  destroved.  345 
municipal  dependence  favors  log-rolling,  bossism  and  corruptn,  403-4 
municipal  home-rule  will  lessen  corruptn,  428-9 
lessened  by  the  automatic  ballot,  488-490 

nature  and  causes  of  political  corruptn,  see  POLIT.  CORRLl'TX.  492 
best  means  of  overcoming,  497-8 
England's  experience,  498-503 
Reform  Bill,  1832,  499 
judicial  decisn  of  electn  disputes,  500 
efficient  corrupt  practices  act,  500 
fraud  forfeits  office.  500-1 

political  success  made  to  depend  on  honesty,  501 
civil  service  reform,  .502 


INDEX  OF  SUBJECTS.  555 

FREEDOM  (see  LIBERTY) 

FREEHOLD  CHARTERS  (see  CHARTERS) 

FUEL  YARD  DECISN  (Mass.),  175 

GAMBLING 

in  stocks,  one  of  the  evils  of  private  monopoly,  90 
public  ownership  eliminates,  153 
GAS  (see  LEGISLATIVE  FORMS) 
1.  cost  and  charges  (see  7,  below) 

excessive  charges  by  private  co.'s,  22-4,  523  Haverhill  case 
the  chaos  of  prices,  22 

Bronson  Keeler's  data,  22 
cost  of  productn  and  the  co.'s  charges,  22-4 
charges  raised  by  co.'s  upon  consolidatn,  102  n 

raised  by  oil  trust,  88 
New  York  Senate  Investigatn,  1885,  22 

suppressn  of  report  by  the  co.'s.  22  n 
New  York  investigatn,  1897,  Prof.  Bemis  testimony,  23 
Boston  gas,  price  and  cost  in  1892.  23 

Bay  State  gas  investigatn,  23,  a5,  44,  58-9,  77-81,  84 
Chicago  co.'s,  23 
Prof.  Bemis  on  cost  of  gas,  23 

cost  in  England  and  the  U.  S.  compared,  24 
Topeka,  24 
Kansas  City,  24 
Trenton,  24 
offer  of  50c.  gas  and  heavy  bonus  for  the  franchise,  523 

2.  overgrown  profits  of  private  co.'s,  34-5 

St.  Louis,  Topeka,  Trenton,  New  York,  34-5 
Boston,  Cleveland,  35 
Haverhill,  35,  523,  539-542 

3.  ovcrcapltalizatn,  43-5,  57,  77,  78 

Boston,  New  York,  (Chicago,  Rochester,  St.  Paul,  Jersey  City,  San 
Francisco,  Baltimore.  St.  Louis,  44-5,  77,  78 

4.  inferior  service  of  co.'s,  pipes  only  where  thi-y    will    pay    dividends,    65 

(compare  151) 
lack  of  due  care  for  public  safety,  66 

5.  free  to  men  of  infliience  (discriminatnl,  69 
diBcriminatn  in  rates,  87 

fraud  and  corruptn,  70.  75,  76-81 

Philadelphia  lease,  75,  249,  528 

Cleveland  case,  76 

Bay  State  gas  case,  77-81 

bribing  city  councils,  140 
false  returns  to  state  officers,  58,  79.  82-3 
concealing  profits  even  in  returns  to  gas  commlssn,  152 
suppressn  of  vital  facts  by  Gas  Commission,  59,  79,  541-2 
false  report  of  Mass.  "investigatn"  written  by  Boston  gas  attorney,  247 
defiance  of  law  by  gas  co.'s,  84-5 
stocks  form  material  for  gambling,  90 

6.  private  monopoly  tends 

to  unprogressiveness  except  where  progress  will  help  dividends,  93 
to  low  character  product.  99-100 

and  to  undemocratic  congestn  of  wealth  and  power,  90-3 
competitn  in,  tried  many  liundred  times,  alwavs  failed  and  must  fail,  101, 

102  n 
regulatn  a  failure  where  most  needed,  106-112 

experience  of  Massachusetts,  110-112  , 

a  ray  of  light,  Haverhill  case,  523.  .">39-542 

7.  reductn  of  rates  by  pub.  ownership.  125;  b.v  law,  179,  180-3.  521 

Hamilton,  Charlottesville,  Wheeling,  Henderson,  Indianapolis,  Dayton, 

and  Toledo,  125 
Richmond  and  Washington,  125-() 
Fredericksburg,  Duluth,  Wakefield,  127 
England,   127 

comparison  of  i)ublic  and  priviitc  rates  in  Va.,  AV.  Va.,  Pa..  Ky.,  and 
Ohio.  126 
present  cost  of.  In  public  works.  127 

economies  of  productn  under  pub.  ownership,  16  reasons  for,  136-141 
excessive  salaries  pd  by  big  gas  co.'s,  140 

co-ordinatn  of  gas  works  with  other  industries  under  pub.  ownership,  142 
cash  savings  by  public  works,  144.  in  England,  145 
8.  co.'s  confine  their  attentn  to  populous  districts,  145 
consumption  larger  under  pub.  ownership,  148 
Bervice  better,  under  pub.  ownership,  151  (compare  65) 
fraud  and  corruptn  less  under  public  ownership,  153-5 

proved  by  experience  of  every  city  that  has  i)ublic  gas  works  (Prof. 
Bemis'  results),  154 
merit  system  favored  by  pub.  ownership,  15S 
employees  better  treated  under  pub.  ownership,  161 
t).  satisfactn  with  pub.  ownership,  202 

growth  of  pub.  ownership,  205,  531  Eng: 
10.  methods  of  securing  pub.  ownership,  175,  251 
publicity,  183,  251 


556  INDEX    OK    SUBJECTS. 

GAS — (ontinued 

leductn  of  rates  by  law  to  squeeze  water  out  of  capitalizatu,  179,  180-3 
taxatn  of  face  and  market  values  of  securities  to  squeeze  out  water,  179, 

181,  521 
pub.  ownership  secured  without  debt  or  taxatn,  184 
municipal  home-rule  as  to  gas  (see  HOME-KT'LE) 
constitutnal  provisns,  431,  462,  S.  Car.,  448,  Ky..  449 
statutes  about  franchises  and  pub.  ownership.  4H0  table,  462  table 
as  to  sale  of  franchises  at  auctn,  449-452 
as  to  pub.  ownership,  442-9,  539 
as  to  local  consent  and  grant,  436  table;  462  tal)le.  443-5,  454-5,  539 

See  HOME-KULE  (13)   a4) 
as  to  referendum.  456,  280-3,  269 

See  STATUTES,  HOME-RULE  (15)  and  DIRECT  LEG.  (D) 
suggested  legislation,  518,  519,  521 
GERRYMANDEEING,  476-7 

New  Jersey  case  and  Judge  Gaskill's  method  of  exposinj^  it,  477,  3.54 
GOOD  CITIZENSHIP  (see  POLITICS) 

increased  by  public  ownership  directly,   156 
high  wages  pd  by  pub.   plants  for  sake  of.  25<» 
GOOD  GOVERNMENT 

aided  by  pub.   ownership,   153-159 

less  fraud  and  corruptn,  153-5  (compare  22,  42-63,  69-81,  140-1) 

better  men  attracted  into  politics,  156 

civic  patriotism  developed,  156 

civil  service  reform  aided,  157-8 

editors,   preachers,   teachers,   etc.,   liberated  from    the    pressure    that 

silences  their  criticism,  159 
labor  better  treated  whereby  the  ballot  is  improved    In    temper    and 

intelligence,  160-7 
high  wages  paid  by  pub.  plants  to  elevate  labor.  250 
GOVERNMENT  (see  SELF-GOVERNMENT) 

free,  not  consistent  with  private  monopoly  (opinion  of  Chief  Ju.stice  Sher- 
wood), 93 
Senator  Hoar  and  Daniel  Webster  to  the  same  effect,  93 
Federal,  savings  by  putting  in  its  own  telephones  iu  Department  of  In- 
terior, 117 
good,  aided  by  public  ownership,  153-159  (see  GOOD  GOVT.) 
sphere  of.  as  to  industry,  238 
republican,  Jefferson  on  nature  of,  295,  384-5 
purified  by  direct  legislatn  (see  I).  L.,  V.  2) 
loans  by  English,  to  Irish  tenants,  501-2  n 
GOVERNMENT  OWNERSHIP 

not  always  the  same  as  public  ownership,  17  (see  PUBLIC  OWNERSHIP) 
GOVERNORS  elected  by  minorities,  484-5 
GRANT  (see  FRANCHISES) 
GROWTH 

of  cities,  7,  8 
of  wealth,  9 

of  fictitious  capital,  44-5 

of  business  under  public  ownship,  146-9.  192-5.  198,  200-1 
of  pub.  ownship,  203-210.  188-0.  .53(M  (see  PUB.  OWNSHIP  (K) 
waterworks.  203-4  (531  Eng.) 
gas  and  electric  works.  205  (530-1  Eng.) 
street  railways.  206,  188-9  (530  Eng.) 
telegraph  and  telephone,  20C-8 
railways,  208,  230-1 
Of  direct  legislation.  279-298;  for  analvsis  see  DIRECT  LEGIS.  (D) 
of  referendum  sentimt,  Ohio  vote,  535 
of  world  movemt  toward  libertv  and  democracy,  296-8 
HAMILTON  GAS  CASE,  178 
H.WERHILL  GAS  CASE,  .523,  539 
HISTORY 

movement  of,  toward  union  and  co-operation,  208-210 

liberty  and  democracv,  296-8 
test  of  civilization,  210 
**'    Ri-P'^   °^*^^  corruptn  in  electns,  etc.   (Eng.),  498;    see    POLIT.    COR- 

of  standard  oil  atrocities,  q.  v.,  87-89,  527 

of  Hay  State  Gas,  q.  v.,  77-81 
HOME-UULE  FOR  CITIES.  (Chap.  Ill,  3S7-46S) 
1.  importance  of  subject.  7-11.  4iS-!> 

cities  like  women^  .387 

legislative  paternalism,  387 

city  can't  connect  two  of  its  own  Imildlngs  with  a  wire  except  bv  permis- 
sion of  legislature,  387 

no  Independent  initiative,  .387.  406  (Eng  ) 

must  get  permlssn  to  move,  387 

can't  own  or  run  local  water,  gas  or  telephone  service  without  consulting 
the  other  cities  and  towns  of  the  state,  ,388 

legislature  cau  plan  pub.  bklgs  for  a  city  and  make  it  pav  fur  them,  388-9 
compel  city  to  pay  claim  rejected  in  court.  389 
take  water  works,  etc..  out  of  citv's  haiuls  (?^  390 


LNDEX  OF  SUBJECTS.  557 

HOME-RULE  POK  CITIES— continued 
city's  francbisc  not  a  contract,  390 
city's  cliarter  not  a  contract,  390 
cities  in  bondage,  390-1 
reasons  for  subjectn  of  cities,  391-2 

dual  nature  of  municipality — state  agency  and  local  business  concern 

key  to  the  situatn,  392,  412 

2.  limitations  on  legislative  omnipotence,  392-7 

inherent  right  of  local  self-govt.  393 
Michigan  doctrine  (Mich,  and  Ind.  cases),  393-6 
contra,  396  n. 

3.  rights  of  cities— general  situation,  397  summary 

4.  consequences  of  municipal  dependence,  398-405 

chaos  of  laws,  398,  539  (318-320,  402,  465-6) 

special  legislatn,  398-402.     (422  and  538) 

lack  of  elasticity,  402 

local  patriotism  crippled,  402-3 

log-rolling,  corruptn  and  bossism  favored,  403-4 

progress  obstructed,  404-5 

5.  remedy,  municipal  independence  in  local  business,  405 

the  manhood  principle,  405-6 

assigned  sphere  of  local  sovereignty,  407-9 

const,  amendmts,  409,  415 

liome-rule  charter  and  the  referendum,  410-1,  415,  428 

direct  legislatn,   merit   system,   and  pub.   ownshp  nec'y,   else  freedom 

from  legislative  bossing  may  mean  subjertn  to  local  politicians  and 

monopolists,  411,  428 
separatn  of  state  and  municipal  affairs,  411-3,  536 

6.  stejis  toward  home-rule,  413-5,  429-430 

7.  freehold   charter  amendmts,    (229^   415-425,   431,   435-8,     508-511    full    t^'xt. 

516  suggested  form 
Missouri,  415-6,  435,  511  full  text 
Louisiana,  410,  435 
Minnesota.  41H-7,  485,  509  full  text 
Washington,  417.  435.  509.  full  text 
California,  418,  435,  510,  full  text 
St.  Louis'  charter,  418-9,  422 
Los  Angeles'  charter,  419 
San  Francisco's  charter,  419-421,  438.  507 

initative  and  referendum,  419,  507 

pub.  own  ship,  420 

merit  system  of  civil  service,  420-1 
the  charters  still  subject  to  the  legislatures,  424-5  , 

8.  special  legislatn  forbidden,  422-3,  431.  431-4,  522 

recommendations  of  the  Ohio  commissn,  538 

9.  points  for  future  charter  laws,  426.  516 

10.  summary  of  discussn  so  far,  427-430 

11.  Dr.  Shaw's  views.  428-9 

Gov.  Russell's  views,  399,  400 

Gov.  Crane,  and  Mayor  Hart,  536 

Natl.  Municipal  League,  model  charter,  228,  229 

Ohio  commissn,  proposed  municipal  code,  538 

12.  constitutional   provisns  affecting  municipal   liberty,   431  table,  432-8,  455, 

505-6  (426.  516) 
safeguards  against  special  legislatn,  431  table,  432-4  (see  422-3,  398-402) 
local  consent  required,  431  table,  434 
franchise  grants,  municipal  power,  431  table,  434,  448-9 
public  ownership,  municipal  power,  434 
charter  making,  municipal  power,  431  table,  435-8  i415-425  see  above) 

13.  «tatute  provisns  affecting  municipal  liberty,  436-7  tabl( 

debt  limltatns,  437,  438  (see  229,  518,  539) 

proposal  not  to  count  bonds  issued  for  revenue  prudueing  utilities, 
229,  519,  539 
local  choice  of  local  officers,  437,  4.38-9 
municipal  baths,  libraries,  etc.,  439 
street  franchises,  439 
municipal  o\^nership,  436  table 

street  railways,  430  table,  440.  447,  448 

telegraphs  and  telephones.  4.36  table,  440-2,  447-9,  539 

gas  and  electric  light  laws.  436  table,  442-9,  539 

city  may  build  plant  tho  it  has  previously  granted  franchise  to  a 
private  co.,  443,  445  (see  178) 

hay  scales,  bicycle  pumps,  etc.,  464 
sale  of  franchises  at  auction.  449-452 
charter  of  Greater  New  York,  4.52 
local  consent  and  powers  of  grant.  4.''.6  table.  453-461,  462  table 

street  railways,  454.  458,  448-9,  459-461,  462  table,  539 

electric  light.  455,  443-5 

telegraph  and  telephone,  448-9.  459.' 460,  461,  462  table.  539 

gas,  455,  443-5 

gas,  water,  elect.  1.,  st.  rys.,  telephone,  454-5  sweep. 
property  owners  assent,  457,  4,'')J)-460.  402  tabh' 


658  liSDEX    OF    SUBJECTS. 

HOME-RULE  EOR  CITIKH— continued 
appeal    to   court,    457,   461 

14.  sweeping  provisns  best.  45H,  454-5,  458,  508-516  (518t 

Minn.,  447,  458,  514.     la..  444 
Wash.,  448,  513.    Cal.,  447 
Ind.,  448,  513.     S.  Car.,  448,  512 
Ky.,  448-9.     Wise.  449 
Kans.,  459,  514.     Mo.,  450 

15.  referendum  provided  for,  456  summary 

Minn.,  442,  456,  458  sweep 

Wasli.,  448,  456  sweep 

la.,  444,  456  sweep,  (see  269-271) 

Wise.,  449,  456  (Initiative  also) 

Mich.,  444,  456  (Initiative  also) 

Nebraska,  457  (Initiative  also)  see  280-1 

So.  Dakota,  457  (Initiative  also)  see  282-3 

16.  statute  provisns  easily  changed,  not  very  reliable,  463 

but  Important  laws  soon  gather  about  them  a  sentimt  that  protect* 
them,  463 

17.  the  honor  list  and  the  awkward  squad,— progressive  states  and  backward 

states,  464 

18.  even  the  best  statute  books  very  imperfect,  465 

legislatures  afflicted  with  intellectual  indigestion,— ponderous  ver- 
bosity, exasperating  repetltn,  chaos  of  enactmts,  largely  useless  or 
worse,  R.  I.,  N.  J.,  Mass.,  etc.,  465-6.     (398,  318-320,  539) 

19.  a  few  brief  sweeping  well  considered  measures  worth  more  than  masses 

of  ill-digested  statutes,  466  (see  505,  508-516,  516-522) 

20.  conclusions,  467-8 

ILL  TREATMENT  (see  EMPLOYES) 
IMPERATIVE  MANDATE 

or  recall  of  a  public  oflicial  b.v    petition    and    vote    of    the    people,    313, 
373,  386 
INCOMES 

progressive  taxatn  of  in  New  Zealand,  169 
in  Switzerland,  346-7 
means  of  raising  funds  to  bidld  or  buy  public  works,  178-9 
INDIANAPOLIS  CASE  (reductu  of  st.  ry.  fares),  183 
INDIVIDUALISM 

two  kinds,  co-operative  and  antagonistic,  237 

the  latter,  a  remnant  of  barbarism,  is  opposed  to  pub.  ownership  and 
co-operative  industry,  236-7 
INITIATIVE  (see  DIRECT  LEGISLATION) 
INTEREST 

not  a  charge  on  public  plants  free  of  debt,  138 
municipalities  borrow  at  low  rates,  139 
INVENTIONS 

suppression  of  by  Western  Union,  94,  171 
adoptn  by  English  teleg.,  171 
INVENTORS 

better  treated  under  public  ownership,  171 
INVESTIGATIONS 

1.  street  railways,  spec.  com.  Chicago  council,  47-9.  84 

111.  Labor  Bureau  (Chicago),  47 

Mo.  Labor  Bureau  (St.  Louis  and  Kans.  Citv),  48,  68,  82-3 

special  com.  N.  Y.  Legis,  (1896),  49,  51,  52,  .'55 

New  York,  49-55;  Broadway  franchise,  55,  71,  386  ^ 

Albany,  Syracuse,  etc.,  51 

Milwaukee,  48 

Cleveland,  48,  52,  82 

Philadelphia,  36.  46,  52 

Boston,  52,  53,  54,  60,  61,  73,  West  End  Lobby;  107 

Mass.  Rapid  Transit  Comssn,  54,  61 

Mass.  Spec.  Com.  on  st.  rys.  (1898),  223  n 

refusal  of  co.'s  to  give  aid  in  investigations,  83,  84 

2.  electric  light,  spec.  com.  Boston  (Dommon  Council,  26  n 

com.  of  Pa.  senate,  26  n,  61,  73 

Phila.  councils  and  electricial  bureau,  26,  61,  73 

3.  gas.  New  York  Senate  (1885),  22,  34,  44 

New  York  (1897),  23 

Mass,  Senate  Com.,  247 

Bay  State  Gas  Case,  23,  35,  44,  58-9,  77-81,  84,  107 

Cleveland  Gas  Case,  35,  85 

4.  water  works,  pub.  and  private.  121.  192-5  N.  Y. 

comparative  consumptn,  146-7,  192  et.  seq. 
Syracuse  Investigatn,  146 

5.  telephone  profits,  N.  Y.,  38 
telegraph,  31 

6.  trusts,  32,  39,  56;  87-89 

wire  nail,  32;  whiskey,  32 
coal  combine  (Cong,  and  N.  Y.  Sen.),  32 
oil,  87-89 
IRELAND 

govt  loans  to  tenants  to  enable  them  to  become  home  owners,  501-2  n 


INDEX  OF  SUBJECTS.  659 

LABOR  (see  EMPLOYES) 

has  deep  interest  in  pub.  ownersliip,  161 

under  pub.  ownership  workingmen  are  co-partners,  160,  162 
American  Fed.  of  Labor,  resolution.  165,  22!> 
high  wages  paid  for  elevation  of  labor,  250 
Glasgow  tramways,  improved  conditions,  107 
deeply  interested  in  direct  legislation.  289,  336 
labor  unions  recognize  its  value,  336 
Amer.  Fed.  of  Lab.,  289,  337,  368 
Interest  in  merit  system  of  civil  service,  471 
spoils  system  a  violation  of  labor's  rights,  472-2 
LAND  MONOPOLY,  528 
LAUNDRIES.  PUBLIC,  Glasgow,  197 

LAW  (see  CONST.   PROVISIONS,   STATUTES,   LEGISLATION,   LEGISLA- 
TIVE FORMS) 
violated  by  monopolies,  16,  40.  41,  81-80 
curious  exami)les  of  erratic,  321 
use  of  i-eferendum  in  our,  263-278  (see  D.  L.  ((.;> 
referendum  increases  respect  for.  321 
simplifies  and  dignifies  the,  317-321 
favors  stability  of,  298,  327-;«4,  369 
multiplicity  of  statutes  and  chaotic  state  of.  318-320.  lim,  4(i2,  465-6,  539 
New  Jersey,  318-9,  402,  466 
Mass.,  466 
ma.v  be  passed  b.v  representatives  <»f  16  per  cent  of  voters,  355  table  and  n 

or  less,  by  help  of  a  Czar  speaker,  or  by  means  of  corruption,  355  n 
on  pub.   ownership,  434.  4.S6  table.  440-449,  512-516,  518,  539  (see  HOME- 
RULE  (12)  to  (14);  LEGISLATIVE  FORMS  (3)  and  (4) 
on  direct  legislatn,  279-283,  505-6;  legislative  forms,  517-8 
on  rights  of  municipalities  (see  HOME-RULE) 
LAWYERS 

predoniiuauce  of  in  legislative  bodies.  337-8 
LEAGUES  AND  ASSOCIATIONS 

American  Fedei-ation  of  Labor,  235.  368 

Natl  League  for  Promoting  Pub.  Ownership  of  Monops.  218 
Natl  Municipal  League,  228,  473 
League  of  American  Municipalities,  228 
Buffalo  Conference.  368 
Social  Reform  Union,  368 
Natl  D.  L.  League,  287 
Civil  Service  Leagues,  473 
Good  Govt  Clubs,  13 
LEGISLATION  (see  STATUTES,   LEGISLATIVE  FORMS,   LAW,   CONSTI- 
TUTIONAL PROVISIONS:  DIRECT  LEGISLATN) 
special,  forbidden,  422-3,  431,  432-4,  522 
lllustratns  of  special,  398-402,  538 
curious  examples  of  erratic,  321 
by  final  vote  of  delegates,  undemocratic.  255-6 
separatn  of  from  the  people,  a  cause  of  corruptn,  492 
corruptn  of  (see  FRAUD  and  CORRUPTN  ( 
cities  subject  to  state,  387-391.  see  HOME-RULE  (1)  to  (4) 
limitations  of,  by  const,  provisn,  392.  397,  422-3,  431-4 
by  inherent  right  of  local  self-government,  393 
contra.  396  n 
Is  in  the  fish  stage— overproductn  a  sign  of  low  developmt,  321 
multiplicity  of  laws.  318-320.  .398,  402.  465-6.  5.30 
for  personal  ends,  destroyed  by  referendum,  345 
class,  checked  by  referendum,  311 
corrupt,  checked  by  i-eferendum.  310,  313 
hastv,  checked  by  referendum,  349 
LEGISLATIVE  FORMS 

1.  dirt  ct  legislation,  505-8  (suggested  form,  516) 

South  Dakota  amendment,  505 

Oregon's  proposed  amendment,  MG 

Utah's  proposed  amendment,  5CKi 

In  San  Francisco's  charter,  507 

Detroit  charter  law,  .507 

proposed  law  for  D.  L.  on  franchises,  508 

2.  freehold  charter  amendments,  508-511;  suggested  form,  516 

Washington,  509 
Minnesota,  509 
California,  510 
Missouri,  511 

3.  public  ownership,  512-516  (see  444,   la.,    447-9,    454-6);    suggested    forms, 

518-519 
South  Carolina  Const.  Amendment,  512  (448) 
Indiana,  513  (448) 
Washington  law,  513  (448) 

Minnesota  law,  514  (447,  448)  • 

Kansas  law,  514  (459) 

4.  suggested  forms  for  amendments  and  laws 

municipal  home-rule,  516  (see  426;  see  also  above  (2)  ' 


560  INDEX    OF    SUBJECTS. 

LEGISLATIVE    VORMS— continued 

direct  legislation-gciK'i-al,  516  (see  300,  sec  also  1  above) 
"  "        municipal  specific,  517  (see  300) 

city  D.  L.  Crisp,  518 
municipal  ownership  broad,  518  (see  3  just  above  and  references  given 
there) 
gas  and  electric  works,  general,  519  (see  3  above) 
gas  and  electric  works,  special,  519 
bonds,  519 
publicity,  520 
reduction  of  rates,  521 
taxation  of  overcapitalization,  521 
progressive  taxation,  incomes,  etc.,  521 
special  legislation,  522 
street  franchises,  522 
LEGISLATURE  (see  LEGISLATION) 

no  right  to  grant  monopolistic  franchise,  41 

private  monopoly  void    by    fundamental    principles    of    free    govern- 
ment, 40-4 
corruption  of,  72,  73.  330,  and  see  FRAUD  AND  CORRUPTION 
composition  of,  337-9,  356 
dignity  of,  and  the  referendum,  374,  321,  351 
use  of,  and  the  referendum,  375,  259,  262-3,  322 
power  over  cities,  387-391 
limitations  on 

by  const,  provision,  392,  397 
by  inherent  right  of  local  self-govt,  393 
contra,  396  n 
in  Switzerland  (see  DIRECT  LEGISLATION)  (F.  20) 
LIBERTY 

of  press,  pulpit  and  school  aided  by  pub.  ownership.  158-9 
of  press,  aided  by  socialization  of  telegraph  in  England,  200  (8) 
objectn  that  pub.  ownership  will  interfere  with  liberty  and  private  Initia- 
tive, 236-7,  240 
demands  pub.  ownership  and  direct  legislatn,  q.  v. 
LIBRARIES 

for  city  councils,  190-1 
LIMITATION 

of  municipal  debt,  437 
of  legislation,  392-.397 
LINSEED  OIL  TRUST 

extortions  of.  32 
LOANS 

by  English    govt    to    Irish    tenants    to    enable    them  to    become    home- 
owners, 501-2  n 
LOCAL  CONSENT,  see  FRANCHISES,  STATUTES,  HOME-RULE  (13)  (14), 

446,  443-5,  453-461,  462  table 
MAJORITY 

election  by,  484  (see  PREFERENTAL  VOTING) 
MANHOOD 

developed  by  the  referendum,  327,  325,  352 
developed  by  public  ownershp,  173 
MERIT  SYSTEM  OF  CIVIL  SERVICE 

necessary  to  reliable  public  ownershp,  18 
pub.  ownrshp  likely  to  create  demand  for,  18.  157-8 
proof  from  Chicago,  251,  from  Detroit,  Wheeling,  etc.,  157-8 
METHOD,  175-190,  251-4.  505-522 

(A)  of  securing  and  maintaining  pub.  owiirshp  (see  LEGISLATIVE  FORMS) 
authority  by  statute  or  constitutional  provision,  175-8 
judicial  limitations,  Mass.  fuel  yard  decision.  175 

Michigan  "internal  improvement"  case  (Detroit),  176-7 
what  constitutes  a  "public  purpose,"  176  n 
Hamilton  gas  case,  178 
ways  and  means,  analysis,  178-9 

squeezing  out  fictitious  values  by  taxing  them,  179.  181 
and  by  reduction  of  rates,  179,  180-3 
Mass.  laws  as  to  stock,  franchises,  etc.,  181 
CO.   cannot  claim  rates  sufficient  to  yield    profits    on    fictitious 

capitalization  (U.  S.  Supreme  Crt.),  182 
if  the  rates  established  by  law  yields  anj/  profit  the  courts  can- 
not Interfere,  182 
reduction  of  telephone  rates  sustained,  182 

"         "  St.  ry.  rates  sustained  (Buffalo,  Lincoln),  182-.'5 
"         "  water  rates  sustained,  Indianapolis  ease.  183 
publicity  and  public  supervision  of  corporate  accts,  183 
raising  funds  by  assessments  on  betterments,  progressive  i:c;ation 

of  incomes,  etc.,  178-9 
not   a   dollar  of  debt  or    taxation    necessary     in     attaining    imblic 
•  ownership.  184 

French  telephone  franchise,  184 
Berlin  electric  light  contract,  184-5 
Leipsic  contract  and  Minneapolis  offer,  185 


INDEX  OF  SUBJECTS.  561 

M  ETHOV— continued 

Hamburg  street  railway  contract,  185 

Toronto  street  railway  contract,  185 

Springfield  (111.)  elec.  1.  contract,  187 

Des  Moines  elec.  1.  offer,  188 

street  railway  municipalization  in  England,  188-1) 

London  proposal,   189 
Australian  method,  189 
Milan  agreement,  189 
Hudapest  plan,  190 
non-partisan  boards  to  control  public  works.  190 
no  sale  or  lease  except  on  referendum  vote.  190  (see  18) 
economic  working  libraries  for  city  councils,  190-1 
first  practical  steps,  251-254 

bonds  for  revenue  producing  utilities  not  to  be  counted  against  muni- 
cipal debt  limit,  229.  539 
(B)of  securing  and  operating  direct    legislation,    see    DIRECT    LEG.    and 

LEGISLATIVE  FORMS 
(C)of  securing  and  operating  municipal  home-rule,  see  HOME-RULE 

See   CIVIL   SERVICE,    PROPORTIONAL   REP.,   PREFER- 
ENTIAL     VOTING.      AUTOMATIC      BALLOT,      BEST 
MEANS  OF  OVERCOMING  CORRUPTN 
METROPOLITAN  STREET  RAILWAYS,  NEW  YORK 
overcapitalization  of,  49,  50-1,  54-5 
Pres.  Vreeland  as  to  cost  of  operation,  60,  524 
MICHIGAN  DOCTRINE 

inherent  right  of  local  self-govt,  39.S-6 
MILLIONAIRES 

list  of,  Tribune,  91-2 

no  prejudice  against  honest,  as  persons,  108 
MINORITY 

rule  by,  unfair,  484 

government  by,  an  organized  system.  355  table  and  note 
election  of  presidents,  governors,  etc.,  by,  484-5 
MODEL  CHARTER 

Nat'l  Munic.  I-eague's  plan  for,  228-9 
MODEL  LODGING  HOUSES 

Glasgow,  196 
MONOPOLY  (see  PUBLIC  OWNERSHIP,  DIRECT  LEGISLATION) 

(A)  definition,  19 

odious  to   our  form   of  government,   and  destructive  of  free   institutions 
(Chief  Justice  Sherwood),  40 

(B)  problem  of,  most  pressing  of  the  age,  9,  14 

(C)  evils  of  private  monopoly,  14,  19-101,  199 

result  from  antagonism  of  interest  between  monopolistic  owners  and 
the  public,  privilege,  unequal  rights,  breach  of  democracy,  con- 
gestn  of  wealth  and  power,  14 

1.  excessive  charges.  19-33,  199-201.  250,  523  (compare,  115-136) 

water.  20-22  (compare,  119,  128) 

gas,  22-24,  523  (compare,   125,  128) 

electric  light,  24-27  (compare,  128,  129,  134) 

transit,  27-31,  216-7 

telephone  service,  31  (compare.  117-9,  J28) 

telegraph  service,  31,  201  ((Compare,  117) 

other  monopolistic  services,  32-33 

2.  overgrown  profits.  33-42 

water  companies,  33 
gas  companies,  34-35,  523 
electric  light  co.'s,  36 
street  railways,  36-38 
telephone  co.'s,  38 
telegraph  co.'s,  39,  201 
other  monopolies,  39 
private  monopoly   means   taxation   (531)   without  representation   and 

for  private  purposes.  16,  40,  216-7 
contrary  to  settled  principles  of  the  common  law  and  the  nature  of 

free  government,  16,  40,  41 
every  grant  of  private  monopoly  void,  40,  41 
no  legislature  in  a  free  country  has  a  right  to  grant  a  monopolistic 

franchise,  16,  41 
monopoly  involves  sovereign  powers  wlierefore  only  the  people  have 
a  right  to  own  a  monopoly,  16 

3.  watered  stock  and  overcapitalization.  42-57  (compare,  153) 

resorted  to  in  order  to  defraud  the  public,  conceal  profits  and  put 
up  a  barrier  against  public  ownership,  42-3 

gas  co.'s,  43-45,  57 

electric  light  co.'s.  85-6 

street  railways,  45-56,  57 

telegraph  and  other  monopolies,  56-7.  201 

a  pernicious  practice  protecting  extortion,  interfering  with  reason- 
able rates  and  obstructing  public  purchase,  57-8 
36 


662  INDEX    OF    SUBJECTS. 

MONOPOLY— continued 

4.  false  statonicnts  and  suppression  of  facts,  22,  58-0:5,  7(),  7!),  82-:{,  245-8 

Bay   State  Gas,   58,   79 

suppression  of  vital  facts  by  Mass.  Gas  Coniniissu,  59,  79,  523 

West  End  Street  Railway  reports,  60 

charging  construction  cost  to  operating  expenses,  61 

omitting  important  facts  from  report  of  investigation  61  (com- 
mittee packed  wltli  vassals  of  monopoly) 

withholding  data  of  operating  expenses,  etc.  (water  co.'s),  22 

false  statements  of  operating  cost,  60,  61,  62 
and  cost  of  construction,  62 

false  statements  of  value,  55 

false  returns  to  state  officers,  58,  79,  82-3 

concealing  profits,  152 

refusal  of  co.'s  (st.  rys.)  to  give  aid  in  investigation,  Sli,  84 

refusal  to  produce  books  in  court  or  bt»fore  legislative  committees, 
62,  63 

burning  of  account  books,  527 

perjury,  theft  and  mutilation  of  public  records,  63,  89 

Francisco's  misrepresentations  as  to  alleged  failures  of  pub.  plants, 
245-7 

false  report  of  "investigation"  by  Boston  gas  attorney,  247 

freak  pamphlet  by  a  street  railway  manager,  247-8 
B.  poor  sen'lee  and  lack  of  service,  63-66,  201 

private  monopoly  aims  at  dividends  not  service.  14.  16.  63 

no  absolute  monopoly  as  yet,  however,  so  that  service  is  in  some 
degree  related  to  dividends,  63 

street  cars  crowded  and  Illheated,  64 

poor  electric  light,  64-5 

Inferior  telegraph  and  telephone  service,  65,  152  n 

insuft.  facilities,  pipes,  wires,  rails,  etc.,  not  extended  to  country 
districts,  small  towns  neglected,  65-6 

dlstributn  of  telephones  better  under  pub.  ownership,  65-6 

6.  disregard  of  public  safety,  66-8 

grade  crossings,  66 

leaky  gas  pipes,  66 

electric  wires,  66-7 

trolley  accidents,  67 

no  cushioned  fenders,  clieaper  to  run  over  people,  68 

oil  below  legal  quality,  88 

dangerous  railroad  stones,  93 

7.  unjust  discrimination,  68-9 

Street  railway  passes,  68 

free  water,  gas.  electricity,  telephones,  etc.  for  men  of  influence,  69 

8.  fraud  and   corruption  q.   v.,   69-81,   140,   141,   249   (compare,   153-5,   213, 

214.  216) 

the  foundation  of  extortion,  70 

and  made  possible  by  extortion,  70 

Inflated  construction  contracts,  70,  77 

excessive  rates  and  monopoly  taxes,  70,  79 

exorbitant  salaries,  false  commissns,  etc.,  70.  79.  141 

false  statements,  perjured  returns  and  suppression  of  facts,  q.  t., 
58.  63,  70,  79,  82-3 

eee-sawlng  traffic,  paying  unearned  dividends  or  otherwise  manipu- 
lating stock  values,  70 

Inflating  values  and  securities,  stock  watering,  etc..  70.  85 

overissue  of  stock,  etc.,  upon  consolidation,  or  paying  high  prices 
for  the  consolidating  properties,  78 

giving  free  passes  and  free  service  in  unjust  discrimination.  70 

distributing  stock  among  influential  people,  70,  75,  76 

scheming  to  wreck  and  capture  public  plants  or  rival  private  works, 

trying  to  spoil  low-fare  experiment  in  Detroit,  82 
70.  74-5 
Michigan  City  electric  plant,  74 
Philadelphia  gas  and  water  works,  75,  249,  528 

bribing  legislators  and  ofliclals,  70,  71-3,  75,  88,  89,  140,  306 

dodging  taxes,  82,  84 

bulldozing  employees,  70 

few  cars,  overpressure  of  gas,  undercurrent  of  electricity,  etc.,  70, 
84,  85 

seeking  to  mislead  and  control  public  opinion  In  private  interest 
newspapers  and  colleges.  70 

unreasonable  rebates  and  ring  contracts.  71.  77-8 

ruining  opponents  by  expensive  litigation.  70 

stealing  inventions  or  suppressing  them,  70 

guaranteeing  heavy  rents  or  profits  on  leased  lines.  71,  79.  98  n 

or  leasing  plant  A  to  plant  B  at  a  moderate  rental  in  order  that  a 
few  may  absorb  dividends  that  would  otherwise  go  to  a  large 
body  of  stockholders,  96  (Judge  Gaynor's  letter) 

Plngree  says  street  railways  "owned  council,"  71 
they  tried  to  bribe  the  Mayor  himself,  71 


INDEX  OF  SUBJECTS.  563 

MONOPOLY— con/iH»ed 

street  railways  have  controlled  Cleveland,  71 

Broadway  franchise  obtained  by  bribing  aldermen,  71  : 

Philadelphia  "Trolley  Grab"  and  "Uailway  lioss  Act,"  72 

bribes  for  street  railway  franchises  in  Chicago,  73  ; 

Boston  street  railway  lobbying,  73 

electric  light  co.'s  In  politics,  73-4 
John  Wananiaker's  statements,  75-6  n 

gas  frauds,     keep    stock    in    hands    of    editors,     legislators,     and 
prominent  Ijusincss  men,  where  it  will  do  good,  76 
Philadelphia  Gas  Lease,  75,  249 
Cleveland  case,   76 
Mass.  Pipe  Line  Co.,  76-7 

Bay   State   Gas   Co.   and   Boston   Gas  Trust,    "The  Beans  Mys- 
tery." 77-81 
attack   and   conquest,    "Give   us  your  business  or  we  will   ruin 
you,"  79 
frauds  of  telegraph  and  other  monopolies,  81  n 
frauds  of  oil  monopol.v,  81  n.  87-SiJ;  corrupting  oil  inspectors,  etc.. 

88-9 
trying  to  bribe  attorney-genl   of  Ohio,  527  (see  STANDARD   Olli, 
CO.) 
9.  defiance  of  law,  81-89  (compare  150) 

street  railway  battles  and  destruction  of  property,  81,  524 
attempted  nullification  of  the  3-cent  fare  ordinance  in  Detroit.  82 
street  railways  preventing  enforcement  of  law  in  Cleveland,  82 
violation  of  tax  laws.  Cleveland  street  railways,  82 
St.  Louis  and  Kansas  City  street  railways,  82-3 
Chicago  street  raihva.vs  assesst  at  2  or  3  per  cent.  84 
Boston  electric  light  co.'s,  85 
lawless  gas  co.'s   Bay   State  Gas  broke  a  dozen  statutes  and  the 
common  law,  84 
Cleveland  Gas  Co.  defying  ordinance  reducing  rates,  84 
escaping  reduction  by  manipulating  pressure,  84-5 
electric  light  co's,  85 

resistance  to  laws  and  ordinances  reducing  rates  a  common  prac- 
tice of  municipal  monopolies,  84 
other  great  law  breakers,  the  nail  trust,  telegraph  monopoly,  Bell 
Telephone  Co.,  railroads,  sugar  trust,  86-7 
Standard  Oil  Monopoly,  summary  of  atrocities,  87-89 

10.  gambling  in  stocks,  90  (compare,  153) 

11.  concentration  of  wealth  and  power  in  few  hands,  90-93  (compare,  168-9) 

congestion  of  wealth  in  U.  S.,  91 

largelv  due  to  monopolies,  as  Is  shown  by  the  Tribtine  Millionaire 

List,   91-2 
farmers  and  mechanics  pay  tribute  to  monopolists,  92 
private  monopoly  dangerous  to  free  institutions  and  repugnant  of 

the  instincts  of  a   free  people     (opinion    of    Sherwoodi.    93. 

(see  100) 
Senator  Hoar  and  Daniel  Webster  to  the  same  effect,  93 

12.  non-progressiveness  except  where  progress  will  help  profits,  93 

old  rails,  dangerous  stoves,  overhead  wires,  failure  to  extend  lines 

into    towns    and    country    districts,    suppression    of   inventions, 

etc..  94 
monopolists  want  to  get  full  wear  out  of  their    old    capital    and 

machiner.v,  and  can  do  it  because  they  are  protected  from  the 

moving  force  of  competition,  93-4 

13.  ill-treatnu'ut  of  employees,   strikes,   etc.,   94-99,   201   (compare  160-167, 

200-1) 
street  railway  strikes,  history  of, 

Cleveland,  9.5 
,  Brooklyn.  95-6 

Philadelphia,  97-8 
long   hours   and    low     wages,     caused    by    overcapitalization     and 

struggle  for  dividends  on  water,  95,  96,  98  n 
arbitrary  discharge.  97,  99  n 
faithlessness  of  co.'s  breaking  agreement  with  men  as  soon  as  they 

were  in  its  power,  97 
vestibules  to  keep  motormen  from  freezing,  refused,  98 
overworking  motormen,  etc.,  and  accidents  resulting,  67 

14.  low  character  pi'oduct,  debasement  both  of  monopolists  and  those  they 

control.  99-100 

15.  denial  of  democracy,  special  privileges  for  a  few,  aristocracy,  100 

16.  widespread  discontent,  201 
(D)  advantages  of  monopoly,  (J4,  100-1 

tends  to  eliminate  adulterations,  64 

economy,    eliminates    within    Its    field    the    wastes    and    conflicts    of 
competition,  100-1 
(E)the  problem  Is  to  keep  the  benefits  and  get  rid  of  the  evils,  102-4 

the  good  arises  from  the  element  of  union  and  co-operation  that  is  In 
monopoly,  102 


564  IMDEX    OF    SUBJECTS. 

MONOPOLY— t'0/i<i;med 

the  bad  results  from  the  fortified  autagonisni  of  interest  between  the 
owners  and  the  public  incident  to  private  monopoly,  102-4 
the  antagonism  illustrated  in  detail  fst.  rys.),  104 
(P)the  solution  is  not  competition  which  forfeits  the  benefits.  105 
and  is  not  practicable  in  water,  gas,  transit,  etc.,  100-101 
nor  regulation  which,  tho  capable  of  doing  some  good,  cannot  remove 
the  antagonism  of  interest,  the  congestu  of  benefit,  nor  the  ex- 
istence of  privilege,  14,  105 
and  in  practice  has  failed  ignoniiniously  at  the  most  vital  points, 
106-112,  533 
but  public  ownership  which  alone   can  solve  the  problem  by  substi- 
tuting harmony,  diffusion  and  democrac.v  for  antagonism,  con- 
gestion and  aristocracy.  14,  16,  105,  112-114 
it  is  not  monopoly  that  is  bad  but  private  monopoly,  113 
monopolies  sure  to  exist,  only  question  is  whether  they  shall  exist 
for  the  benefit  of  all  or  for  the  benefit  of  a  few,  whether  they 
shall  be  owned  by  the  people  or  the  people  be  owned  by  them, 
16,  115  n 
maxim  of  business  that  property  should  be  managed  in  the  interest 

of  its  owners,  lOS;  113 
if  the  people  want  the  water,  light,  transit,  and  other  monopolies 

run  in  their  interest,  they  must  own  them,  11.3 
same  agents  that  manage  the  monopolies  in  the  interest  of  a  few 
stockholders  now   would   manage   them   in   the   interest  of   the 
larger  body  of  owners  under  public  ownership,   108-4 
See  PUBLIC  OWNERSHIP 
'([G) government  may  be  a  private  monopoly,  17  isee  DIRECT  LEGISLATION) 
private  monop.  in  law-making  destroyed  by  direct  legislation.  311.  353 
<(H)  possible    (not    probable)    perpetuation    of    private    luonoiwly— Macaulay's 
Warning,  526 
the  hope  of  the  future,  526 
(I)  land  monopoly — unearned  increment,  528 

single  tax  theory,  529 
(J)  first  steps  toward  relief,  251-254,  516-522.  also  5<)5-.'il4 
MORALITY 

favored  by  direct  legislation,  .327,  306-;'.14.  352.  see  D.  L.  (F.  2,  13,  24) 
favored  by  public  ownership,  172 
MOTIVES 

of  those  who  oppose  pub.  ownership  and  those  who  favor  it,  24S 
of  those  who  oppose  direct  legislation  (see  OBJECTIONS) 
of  monopolies  compared  with  public  institutions,  16,  199,  231 
MOVEMENT 

for  extension  of  public  ownership,  see  PUBLIC  OWNERSHIP  (K) 
causes,  18 

extent,  see  GROWTH 
street  railways,  206,  228,  188-9  (Eng.) 
for  extension  of  direct  legislation,  see  D.  L.  (D) 
world-wide,  toward  liberty,  and  democracy,  296-8 
of  history  toward  union  and  co-operatn,  208-210 
of  street  railways  to  get  50-.vear  franchises,  229 
MUNICIPALITY 

dual  functions  of,  392.  412 

subjectn  to  legislature,  387-391,  see  HOME-RULE  (1) 

consequences,  398-405 
rights  of,  397,  summary 
charter  of,  not  a  contract,  390 

independence  of,  how  can  be  secured.  405.     See  HOMl-MU'LE  (5)  to  (10) 
MUNICIPALIZATION,     see    PUB.     OWNERSHIP.     STREET     RAILWAYS, 
WATER,      GAS,      ELECTRIC      LIGHT,       TELE- 
PHONE, ETC. 
MUNICIPAL  OWNERSHIP  (see  PUBLIC  OWNERSHIP) 
NAIL  TRUST 

extortionate  charges  of,  32 

breaking  contracts,  wrecking  machines,  etc..  86 
NEWSPAPERS 

subsidized  b.v  monopolists,   70,   75.   76 
bought  or  silenced  by  oil  trust,  87,  88 
discriminated  against  by  telegraph  co.,  69 
freedom  interfered  with  b.v  telegraph  co..  81  n 
freedom  increased  by  public  ownership.  158-9 
helped  by -socialization  of  telegraph  in  England.  200  iS) 
NEW  YORK  M'ATERWORKS,  192-5 
NOMINATION 

by  direct  ballot  or  petition  of  the  people,  385  n,  386 
NON-PARTISAN  BOARDS 

to  control  public  works.  190 
NOTES  AFTER  CHAPTERS  WERE  MADE  UP,  523-542 
gas,  Haverhill  case,  523,  5.39 

50-cent  gas  offered  and  a  big  bonus  for  the  franchise.  523 
electric  light,  Jacksonville  piiblic  plant.  .523 
Street  transit  elements  of  cost  in  New  York.  524 


INDEX  OF  SUBJECTS.  565 

NOTES   AFTER    CHAPTERS   WERE    MADE    UP— continued 
street  railway  deflauce  of  law,  524 
telephone  taxation,  Ohio  method,  525 
private  monopoly— possible  perpetuation,  525 
Macaulay's  warning,  520 
the  hope  of  the  future,  526 
Standard  Oil  and  Hon.  Frank  S.  Monnett.  527 

Standard's  effort  to  bribe  attorney-general  of  Ohio,  527 

trust  burning  its  books,  527 
publicity  feared  by  trusts,  argument  of  Dos  Passes,  527 
Philadelphia  waterworks,  councils  and  corporations,  528 
land  monopoly,  unearned  increment.  528 

single  tax  theory,  529 
municipal  ownership  in  Great  Britain,  530  (see  188-9,  comp.,  203-210> 

electric  light  and  tramways,  530 

gas  and  water,  531 
growth  of  public  ownei-ship,  references,  531 
mill  or  monopol.v  taxes,  531 

Hale,  Rev,  Dr.  E.  E.,  letter  on  public  ownership.  531-2 
Gladden,  Rev.  Washington,  on  monopoly  and  public  ownership,  532 
Jones,  Mayor,  on  the  veto,  532 
Bemls,  Prof,,  tract  on  municipal  monopolies,  532 

on  regulation  in  Mass,,  etc.,  533 
Abbott,  Rev,  Dr,  Lyman,  on  public  ownership  of  railroads,  533 
Porter,  Robert  P,,  objections  to  public  ownership,  533 
the  referendum  in  Boston,  Dec,  99,  535 
referendum  sentiment  as  indicated  by  the  Ohio  vote,  535 
merit  system  in  San  Francisco  and  Baltimore,  536 
separation  of  local  from  state  and  natl.  issues,  536 
civil  service  and  home-rule.  Mayor  Hart,  and  Gov.  Crane,  536 
election  frauds,  537 

in  Philadelphia,  537 

Wanamaker's  statement,  537 
U.  S.  senatorship  bought  in  Montana,  537-8.  see  89 

popular  election  of  senators,  538 
special  legislation  in  New  York  (1899),  538 
profiosed  municipal  code,  Bushuell  commission,  Ohio,  538 
multiplicity  of  laws,  .539 
statute  notes  on  home-rule 

telephones  in  Wis.,  Xev,.  N.  Dak.,  5.39 

gas  and  electric  works  in  Colo,  and  Ohio,  539 

street  railways  in  Mo,,  539 
municipal  debt  limit,  539 

bonds  for  revenue  producing  utilities  not  to  be  counted,  539,  see  229 
OBJECTIONS 

1.  to  public  ownership,  233-251 

patronage,  233-5 

paternalism,  235-6 

socialism,  236 

individualistic  liberty,  236-7 

not  the  govt's  business,  238 

vested  interests,  238 

municipal  debt  and  exti'avagance,  239 

non-progressive,  240-1 

inefficient,  241-2 

not  economical,  242-5 

Mr.  Foster's  elect,  light  figures,  24.3-5 
failures,  245-251 

M,  J,   Francisco's  misrepresentations.  245-7 

Mass,  committee  to  investigate  gas  works — investigations  made  and 
report  written  by  attorney  of  Boston  gas  co.'s.  247 

freak  pamphlet  b.v  a  street  railway  manager,  247-8 

Philadelphia  gas  works,  248-9 

Chicago  electric  light  plant,  249-251 
Robt,  P.  Porter,  533 
motives  of  those  who  favor  and  those  who  oppose  pub.  ownership,  248 

2.  to  direct  legislation,  370-386 

classes  of  objections,  370 

causes  and  motives  of  objections,  370 
tlon't  understand 

cost  too  much,  371 

keep  people  voting  all  the  time,  371 

un-American  idea,  372 

not  a  panacea,  372 

can't  overcome  fraud  and  corruption,  the  offices  will  remain.  373 
overestimates  of  other  reforms 

all  we  need  is  to  elect  better  men,,  373 

proportional  representation  will  do  the  work,  373 
the  dignity  people 

dignity  of  Legislatures  will  depart,  374  (see  321) 

(it  won't  take  a  large  ^t^hicle  to  carry  it  now  In  some  cases) 
what  use  will  legislatures  be,  375  (see  259,  262-3,  322) 


666 


INDEX    OF    SUBJECTS. 


OBJECTIONS— conMwuetf  -^ 

the  conservatives 

I'm  pretty  comfortable,  let  things  ulone,  376 
the  referendum  is  unwise,  376 
it  Is  cumbersome,  377 
It  is  dangerous  to  capital,  377 
things  are  getting  better,  let  'em  alone,  377 
good  thing  when  the  time  comes,  not  ready  for  it  yet,  378  n 
distrust  of  the  people 
hasty  legislation,  378 
people  not  competent,  379 
mob-rule,  a  la  Carlyle,  880 
a  tricli  to  get  wisdom  out  of  foolishness,  381 
too  expensive,  382 
impracticable,  382 

Swiss  success  no  sign  it  will  work  here,  383 
violates     representative  principle,  383 
personal  interest,  rings  changes  on  all  above 
reduce  legislature  to  advisory  body,  383 
people  don't  know  enuf,  384 
people  don't  want  to  vote  on  measures,  384 
it's  imconstitutional,  384 
resume,  385-6 

experience   has  proved   objections   to   direct   legislation   baseless,   349-351, 
see  DIRECT  LEGISLATION  (F.  20) 
OBLIGATORY  REFERBNDDM  (see  DIRECT  LEGISLATION) 
definition,  257 
best  form  ultimately,  301 

used  in  making  and  amending  constitution,  etc.,  257  n 
used  in  Swiss  cantons,  344,  345 
OFFICES  (see  CIVIL  SERVICE  (2)  ELECTIONS) 
OIL  (see  STANDARD  OIL  TRUST) 
OLD  AGE 

relief  for  employes  in,  473  n 
OPTIONAL  REFERENDUM  (see  DIRECT  LEGISLATION) 
definition,  257 

better  form  to  begin  with,  302 
OVERCAPITALIZATION,  42-57  (compare,  153) 

a  pernicious  practice  frequently  resorted  to  in  order  to  protect  extortn, 
conceal  profits,  defraud  the  public,  prevent  the  due  reductn  of  rates 
and  obstruct  public  purchase.  42-3,  57-8 
may  arise  from  false  bookkeeping,  careless  or  intentional,  55 
gas  co.'s  43-5,  57,  77-8  (Boston) 
of  electric  light  co.'s,  85-6 
street  railways,  45-56,  57,  181 

New  York  table,  49 
telegraph,  56 
sugar  trust,  56.  57 
oil  monopoly,  56,  57 
banks,  railways,  etc.,  57 
causes  long  hours  and  low  wages  and  produces  strikes  (opinion  of  Judge 

Gaynor),  95,  96,  98  ii 
eliminated  by  reductn  of  rates,  179.  lSO-3,  521 
by  taxatn  of  excess,  179,  181,  252,  521 
suggested  leglslatn,  521 
OWNERS 

of  abutting  property,  consent  of  to  franchises,  457,  459,  460,  462  table 
assessmts  on  to  pay  for  pub.  works,  178-9 
OWNERSHIP  (see  PUB.  OWNERSHIP) 

control  the  essence  of,  18 
PARTISANSHIP 

developed  by  spoils  system,  471 
weakened  by  civil  service  reform.  471 
weakened  by  direct  legislation.  311-2.  313-4 
guarded  against  by  non-partisan  boards,  190 
PATERNALISM 

objection  made  to  pub.  ownership,  235 
PATRIOTISM  (Civic) 

developed  by  public  ownership,  156   . 
by  direct  legislation,  323-4 
"  by  municipal  home-rule,  428-9 

crippled  by  subjectn  of  cities  to  legislature,  402-3 
PATRONAGE 

objection  to  public  ownership,  233-5 
PEACE 

cause  of.  aided  by  direct  legislatn,  298.  327-.S.34,  369 
few  wars  if  people  voted  them,  298.  369 
no  standing  army  In  Switzerland,  369  n 
PENSIONS  j 

for  employes,  473  u 
PLURALITY 

election  by,  unfair,  484 


ixdj:x.  of  subjects,  567 

political  coukti'tion,  best  means   op   overcoming.     chap 

VIII,  pp.  492-503 

1.  to  overcome  we  must  understand,  492 
nature  and  causes,  492 

separation  of  legislation  from  the  people,  492 
large  communities  and  massive  affairs,  492 

orgiinizatiou  for  plunder,  rings,  machine  nominations,  bribery,  false  count- 
ing, etc.,  493 
a  few  illustrations, 

Chicago  franchises,  493 

Philadelphia  franchises,  494,  528 

Southern  methods,  494 

Sugar  Trust,  Credit  Mobilier.  494 

Pennsylvania   legislature.  494 

election  frauds  in  Philadelphia,  537 

Wanamaker's  statement,  537 

Jersey  City  and  the  Abbett  ring,  494-5 

New  York  Central,  Could,  Oil  Trust,  Lexow  Investigation,  495 

systematic  bribery  of  voters,  496 

assessments  of  office-holders  and  candidates,  496 

West  End  case.  Bay  State  gas  villany,  etc.,  496 

purchase  of  U.  S.  senatorships,  89,  537 

2.  two  ways  of  overcoming — remove  inner  causes,  or  external  conditions.  497 
Internal  causes,  497 

conditions  creating  motive,  or  affording  opportunity,  497 
what  should  be  done,  497-8 

3.  England's  experience,  498-503 

oppression  and  corniptn  early  In  the  century,  498-9,  503 
the  reform  bill  (1832),  499 

re-apportioned  representation,  499 
greatly  extended  the  suffrage,  499 

transferred  power  from  wealthy  to  middle  classes,  499 
the  reform  parliament.  499 
the  chartist's  ideas,  .")00 
suffrage  further  extended  (1867).  .500 
judicial  decision  of  election  disputes,  500 
Gladstone's  secret  ballot  act,  5(X) 
efficient  corrupt  practices  act  (1883),  500 
fraud  forfeits  office,  500-501 

political  success  made  to  depend  on  honesty,  501 
suffrage  extended  to  3  million  agricultural  laborers.  501 
government  loans  to  enable  Irish  tenants  to  buy    land    and    become 

home-owners,  501-2  n 
civil  service  reform,  502 
in  a  single  liff-time  England  has  come  by  peaceful  legislation  from  cor- 
ruption to  remarkable  purity  in  elections  and  government,  502 
from  aristocrac.v  and  des;)otism  to  a  large  degree  of  democracy,  502-3 
education  and  wise  legislation  will  solve  our  problems  also 
POLITICS 

improved  by  public  ownership.  153-159 
less  fraud  and  corniptn,  153 
better  men  attracted  into,  1.56 
civic  patriotism  developed,  1.56 
civil  service  reform  aided,  157-8 
editors,   preachers,   teachers,   etc.,   liberated  from    the    pressure    that 

silences  their  criticism.  1.59 
labor  better  treated,  160-7,  whereby  the  ballot  is  Improved  in  t<'raper 
and  intelligence,  1(30-7 
lmpro\  ed  by  direct  legislatn,  see  DIRECT  LEGISLATN  (F  2,  to  5  and  9) 
PREACHERS 

liberated  from  monopolv  pressure  by  pub.  ownership,  158-9 
PREFERENTIAL  VOTING.     Chap.  VI,  pp.  484-7 
correlative  of  D.  L.  and  Propor.  Rep.,  484 
plurality  rule  unjust,  484 

it  often  enables  a  minority  to  rule,  484 

presidents  and  governors  and  mayors  elected  by  minorities,  484-5 
really  disfranchises  many  voters,  48.5-6 
majority  rule  may  be  secured  in  8  ways.  486 

effective  or  prefi-rential  voting  the  best  way  in  general  elections,  48d 
method  of  operation,  486 
PRESIDENTS 

elected  by  minorities,  484-5 
PRESS  (see  NEWSPAPERS) 

liberty  of  invaded  by  monopolists,  69,  70,  75-6,  81  n,  87-8 

of  increased  by  pub.  ownership.  1.58-9.  200 
aided  by  socialization  of  telegraph  in  England,  200  (8) 
elevated  by  referendum.  ?>2.5.  345 
PRICES  (see  RATES) 
PROI5LEM 

of  the  city,  9 

of  monoi)olv,  9.  14,  102 

of  liberty  and  self-govt,  9-12 


566  INDEX    OF    SUBJECTS. 

PROFITS 

1.  of  private  ooiiipanies 

water,  20-22,  33 

gas,  22-24,  34-5.  78,  79.  523 

electric  light,  25,  27,  36 

street  railways,  27-31.  36-8.  46 

telephone  co.'s,  31,  38,  117 

telegraph  co.'s.  31,  39 

trusts  and  combines,  32-33,  39,  57,  78,  79 

concealed  by  overcapitalization,  q.  v. 
the  main  aim  of  monopolists,  14,  16,  63 
co.'s  no  right  to  profit  on  fictitious  capital,  182 
may  be  squeezed  out  by  laws  reducing  rates,  179,  180-3 

2.  of  "public  plants.  143 

water 'works,  143-4 
electric  light  works.  144,  132-3 
gas  works,  144-5,  126-7 
street  railways,  198 

3.  of  private  monopolies  saved  by  public  ownership,  143,  132-3,  117 

telephone,  117,  31,  38 

4.  of  private  contractors  saved  b.v  direct  employment  of  labor  by  the  city, 

143  n,  542 
PROGRESS 

sacrificed  to  profits  by  private  monopolies,  93-4 
favored  by  pub.  ownership,  169 

proofs  from  water,  gas,  and  electric  works,  tramways,  postoffiee,  etc., 

170 
inventors  better  treated,  171 
inventus  adoi)fed  bv  English  teleg.  and  suppressed  by  Western  Union, 

171 
objectn  answered.  240-1 
favored  bv  direct  legislation.  303  et  seq. 

See  DIRECT  LEGISLATN  (F) 
of  civilization  is  toward  liberty,  equality  and  democracy,  296-8 
toward  public  ownership.  208-210 

toward  direct  legislatn,  352,  370.    See  DIRECT  LEGISLATN  (D  and 
F  20) 
one  test  of,  Is  advance  of  co-operation.  210 
PROPORTIONAL  REPRESENTATION.     Chap.  V,  p.  474-483 
the  correlative  of  direct  legislation,  474-5 
each  class  and  interest  should  be  represented  in  legislative  bodies  in  same 

proportion  as  it  exists  in  the  community,  475 
the  district  system  falls  to  secure  this,  476 
gives  dominant  party  undue  power,  476 
practically  disfranchises  large  masses  of  citizens,  476 
Garfield's  statement,  476  n 
gerrymandering.  476-7,  354 

N.  J.  case  and  Judge  GaskiU's  exposure  of  it,  477,  354 
in  Ky.  a  Democrat  weighs  as  much  as  7  Republicans,  478 
in  Me.  a  Democrat  weighs  nothing,  478 

illustratns  of  disproportionate  representatn  in  various  states,  478-481 
in  New  York  City,  481 
by  prop.  rep.  the  voting  strength  of  each  class  is  reproduced  in  the  legis- 
lature or  council.  475,  482 
makes  the  legislature  a  miniature  or  political  photograph  of  society,  true 

to  life  instead  of  a  grievous  caricature,  482 
method  of,  482-3 
adopted  in  a  number  of  Swiss  cantons.  .351-483 

in  lU'lgitiu'.,  483 
local  option  as  to  use  of.  in  cities,  adopted  in  Illinois.  483 
PUBLICITY 

of  corporate  accounts,   183  (see  also  FALSE    STATEMENTS    and    SUP- 
PRESSION) 
feared  by  trusts  and  monopolies,  527 
a  first  step  in  reform,  252 
suggested  legislatn,  520 
PUBLIC  OWNERSHIP.     Chap.  I.,  17-254  (14,  16) 

(A) not   same  as   government   ownership  unless   the  people   own  the  govern- 
ment. 17 
of  government,  necessary  to  reliable  pub.  ownership  of  industry,  17 
direct  legislative  and  merit  system,  part  of  true  plan  of,  18 

(B)  nominal  pub.  ownshp  may  lead  to  real,  18 
causes  of  growing  demand  for,  18 

means  change  of  purpose  from  private  profit  to  public  service.  16,  199,  231 

(C)  evils  of  private  monopoly,  see  MONOPOLY,  14.  16,  19-101 

(D)  benefits  of  monopoly.  64.  100-1 

tends  to  eliminate  adulterations,  64 

economy,  stops,  within  its  field,   the  wastes  and  conflicts  of  competi- 
tion, 100-1 

(E)  problem  is  to  keep  benefits  and  banish  evils.  102-4 

the  good  arises  from  elemt  of  union  and  co-operatn  in  monopoly.  102 
the  bad  comes  from  the  fortified  antagonism  of  interest  between  the 
owners  and  the  pnl)lic.  102-4 


IXDEX  OF  SUBJECTS.  56& 

PUBLIC   OWNERSHIP— coHM/nfe«i 

(F>  the  solution  is  not  conipetitu.  100-1,  105  see  MONOPOLY  (Fi 
nor  regiilatn,  lOG-112.     See  MONOPOLY  (F) 
but  public  ownership,  14,  16,  105,  112-114.     MONOPOLY  (F} 
it  is  not  mouoijoly  that  is  bad,  but  private  monopoly,  113 

(G»  advantages  of  pub.  ow.,  115-175 

1.  lower  rates,  115-136,  242-5,  246,  249,  250-1,  523  (comp.  19-33) 

roads,  Glasgow  tramways,  Brooklyn  Bridge,  etc.,  115 

Brooklyn  and  St.  Louis  bridges,  115  table 
telegraph,  reductio'n  of  rates  when  Eng.  took,  117,  200-1  (comp.  31) 
telephone,  117-9,  12.8  table  (compare  31) 

saving  of  Federal  Govt,  by  putting  in  its  own  phones,  117 

Troudjhem,  117,  Stockholm,  118,  France,  118 

co-operative  exchanges,  Sweden,  118 

co-operative  exchanges,  America,  118-119 

companies  iiidepondent  of  Bell,  119 

con  versa  tn  charsres,  128  table 
water.  119,  128  table,  195  (comp.  20-22) 

Schenectady,  Auburn.  Syracuse,  120 

Randolph  22,  Prof.  Ely's  statement.  22 

facts  from  Baker's  Water  Manual,  120-4 

private  co.  charges  43  per  cent,  above  pub.  rates,  122.  20 

still  greater  dilTerence  between  private  rates  and  the  real  cost 
of  pub.  service,  123  table 

Brookline.  Hyde  Park.  Milford,  etc.,  124 

London  and  Glasgow,  123 

more  water  for  less  money  in  pub.  works,  22,  192,  19p 
gas,  125.  128  table.  249  (comp.  22-24) 

reduction  by  pub.  ow.  (a  dozen  cities)  125-7 

pub.  and  private  rates  compared  (5  states),  126 

present  cost  of  gas  in  pub.  wrks,  127 

Phila.  case,  249  (75,  528) 
electric  light,  128,  129  and  134  tables,  242-5  (comp.  24-27) 

a  few  crisp  contrasts,  128  table 

cost  before  and  after  pub.  ow.,  129  tabl^,  250  Chicago 

Peabody,  Aurora,  Elgin,  130 

Detroit,  Allegheny,  131 

Fairfield.  Bay  City,  132 

Jacksonville,  132,  523 

Jamestown,  Lansing.  132 

Springfield  (111.),  Logausport,  133 

present  cost,  in  pub.  plants.  134  table 

pub.  charges  much  below  private,  135 

E"'oster's  figures,  242-5 

Chicago's  case,  250-1 
street  railways,  197  (524) 

2.  economy,  130,  250-1 

16  reasons  why  pub.  ow.  can  produce  at  lower  cost,  136-141 
summary  statement,  136 

direct  employment  better  than  contract  system.  143  n,  542 
wages  above  competitive  rate  are  paid  for  manhood  and  good  citi- 
zenship, not  for  light,  etc.,  250 

3.  co-ordination  of  industries,  141 

cannot  be  so  complete  under  private  as  under  pub.  ow.,  141,  142  n 
examples,  142-3 

4.  profits  go  to  the  people,  to  all  instead  of  a  few,  143-5 

water  profits  in  Phila.,  N.  Y.,  Chicago,  143-4 

electric  profits,  144,  523 

gas,  144-5,  (Eng.,  145) 

street  railways,  198  Glasgow,  524 

5.  enlargemt  of  facilities,  145-6,  194,  200-1 

gas  and  water  pipes,  turnpikes,  etc.,  145,  194 
electric  light,  Foster's  admissns,  145 
post,  telephone,  telegraph,  146.  200-1 

6.  increase  of  business.  146-9.  192-5,  198,  200-1 

water,  consumptn  much  larger  under  pub.  ow..  22,  146-7  table,  192-5 
gas,  street  railway  and  teleg.  traflic  greatly  developt,  148,  198,  200-1 

7.  more  impartial  treatment  of  customers,  no  secret  rebates,  etc.,  149 

8.  safety  better  provided  for,  150 

railroads  in  U.  S.  and  Germany.  150 
Brooklyn  Bridge  and  N.  Y.  st.  rys..  150 

9.  oliedience  to  law,  150  (compare  81 -9t 

10.  better  service,  150-2,  195,  198,  200-1  tcomp.  64-6) 

proof  from  water,  gas,  elec.  1..  st.  rys.,  151,  195,  198 
teleg.  and  teleph..  151.  152  n,  117,  200-1 

11.  true  accounts,  152  (comp.  55.  58-62,  79,  82-3) 

everything  open  to  public  and  no  motive  to  falsify  as  in  case  of  a 
private  co.,  153 

12.  no  Matered  stock,  or  inflatn  of  capital.  153  (comp.  42-57) 

13.  no  stocks  to  gamble  with.  1.53  (comp.  90) 

14.  less  fraud  and  corruptn.  153-5  uomp.  22.  42-03.  69-81.  140-1.  249) 

It  is  not  pub.  plants  that  buy  votes  and  maintain  lobbies,  153 


670 


INDEX    OF    SUBJECTS. 


PUBLIC  OWNERSHIP— continued 

pub.  ow.  relieves  govt,  from  many  corrupting  relatns  with  rlcli  men 
and  giant  co.'s,  154.  533 
changes  financial  Interest  of  rich  to  the  support  instead  of  de- 
struction of  honest  govt,  154,  5.S3 
experience  shows  that  pub.  ow.  tends  to  diminish  oorruptn,  154 
high  authority  to  same  effect,  Profs.  Bemls  and  Commons,  154 
Dr.  Shaw,  Prof.  Ely,  Gov.  Plngree,  155  (also  214,  Ely) 

15.  attracts  better  men  into  politics,  156 

16.  tends  to  develop  civic  interest  and  patriotism,  156 

producing  a  better  citizenship,  156 

17.  aids  civil  service  reform,  157-8,  216,  251 

Prof.  Ely's  statemt,  157 

Detroit's  experience,  electric  commissn's  report,  157 

Chicago,  Wheeling,  158 

pub.  gas  works.  Prof.  Bemis'  statemt,  158 

18.  tends  to  better  govt.,  as  above  and  in  other  ways,  158 

liberates  speakers,  editors,  preachers,  teachers,  158-0 

safer  here  to  criticise  govt,  and  pub.  affairs  than  the  big  monopo- 
lies, 158-9 

many  papers  and  pulpits  owned  and  controlled  by  monopolists, 
none  by  the  govt.,  159 

the  monopolists  will  not  have  their  papers  and  pulpits  defeating 
their  schemes  at  the  State  House,  159 

pub.  ow.  means  freedom  of  press,  pulpit  and  school  from  the  chains 
of  monopoly,  159 

19.  a  pub.  plant  can  be  trusted  with  an  unrestricted  franchise,  159 

20.  better  treatment  of  labor,  lOU-7,  250-1  (comp.  94-9) 

under  pub.  ow.  the  workers  are  co-partners,  160,  162 
St.  rys.,  Brooklyn  Bridge  and  Glasgow,  160 

Hudderstield,  Sheffield,  1(!1 
gas  and  electric  wks,  Wheeling,  Richmond,  161 

Chicago  electric  works,  250-1 
labor's  interest  in  pub.  oav.,  161  summary 
condtn  of  Boston  st.  ry.  employes  and  police  compared,  162 
<;ontrast  between  Western  L'nion  and  Eng.  teleg.,  162-4 
contrast  between  Western  Union  employes  and  U.  S.  mail  carriers, 

162-3,  164-5 
hours  and  wages,  pub.  and  private,  165  table 
federated  labor  recognizes  value  of  pub.  ow.  to  labor,  165 

21.  no  costly  strikes  and  lockouts,  166 

losses  by  strikes,  etc.,  166,  table 

22.  a  good  step  toward  complete  co-operatn,  167 
'2'i.  adds  to  social  strength  and  cohesion,  107 

24.  pub.  assets — citizens  i-lches,  167 

better  for  a  man  to  own  a  good    business    himself    than    have    some 
one  else  own  it  all,  and  same  is  true  of  a  city,  167 

25.  tends  to  diffusion  of  benefit,  168-9,  (comp.  90-3) 

no  prejudice  agnst  honest  millionaires  as  persons,  168 

but  the  congestn  of  wealth  is  an  economic,  political  and  social  evil, 

168 
Judge  Marshall's  opinion,  168 
pub.   ow.    and   progressive  taxatn   stopping  congestn   of   wealth   in 

New  Zealand,  169 

26.  favors  progress,  169,  Topeka,  170,  Chicago,  etc.,  158,  250-1 

proofs  from  water,  gas  and  electric  1.  wrks,  st.  rys.,  post  office,  170 

inventors  better  treated,  171 

inventus  adopted  by  Eng.  teleg.  and  suppressed  by  West.  Un.,  171 

27.  favors  aesthetic  developmt,  171 

28.  favors  moral  improvmt,  172 

29.  favors  developmt  of  manhood,  173 

30.  favors  liberty  of  press,  pulpit,  school,  court  and  legislative  hall,  editor, 

preacher,  teacher,  workingman  and  voter,  173 
see  158-9,  and  number  (18)  above,  also  200  ^8) 

31.  favors  democracy  and  self-govt.  173 

opposes  Industrial  aristoci-acy,  174 

Federal  Const'n  guards  against  the  name  of  aristocracy,  but  does 
not  protect  us  agnst  the  substance,  174 

32.  favors  unity  and  harmony,  identifying  the    Interests    of    owners    and 

public,  175 
(H)  metliod  of  attaining  pub.  ownership,  175-192,  251-4 
authority  by  statute  or  const..  175-8 
judicial  limitations,  Mass.  fuel  yard  decision,  175 

Michigan  "internal  Improvmt"  case  (Detroit),  17G-7 
what  constitutes  a  pub.  purpose,  176,  n. 
Hamilton  gas  case,  178  (see  443.  445) 
ways  and  means,  analysis,  178-9 

publicity,  and  pub.  supervision  of  corporate  accts.  183,    229.    252, 

520,  527 
squeezing  out  fictitious  values  by  taxing  them,  179,  181,  521 
and  by  reduction  of  rates,  179,  180-3,  252,  521 
CO.  cannot  claim  rates  suft.  to  yield  profit  on  fictitious  caiiitali- 
zatiou  (U.  S.  Supreme  Crt),  182 


INDEX  OF  SUBJECTS.  571 

PUBLIC  OWNERSHIP— conanwed 

if  the  rates  establisht  by  law  yield  any  proflt  the  courts  can"t 

interfere,  182  (?) 
reductn  of  teleph.  rates  sustained,  182 
"         "  St.  ry.  rates  sustained,  182-3 
"         "  water  rates  sustained,  183 
Mass.  laws  as  to  stock,  franchises,  etc.,  181 
raising  funds  by  assessmts  on  bettermts,  progressive  taxation  of 

incomes,  inheritances,  etc.,  178-9 
not  a  dollar  of  debt  or  taxation  nec'y  in  attaining  pub.  ow.  184 
French  teleph.  franchise,  184 
Berlin  elect.  1.  contract,  184-5 
Lelpsic  contract  and  Minneapolis  offer,  185 
Hamburg  st.  ry.  contract,  185 
Toronto  St.  ry.  contract,  185-7 
Springfield  (111.)  elec.  1.  contract,  187 
Des  Moines  elec.  1.  offer,  188 
St.  ry.  munlcipalizatn  in  Eng.,  188-9 

London  proposal,  189 
Australian  method,  189 
Milan  agreemt,  189 
Budapest  plan,  190 

New  York  Underground  Railways,  539 
non-partisan  boards  to  control  pub.  wrks,  190 
no  sale  or  lease  except  on  referendum  vote,  190  (see  18) 
economic  working  libraries  for  city  councils,  etc.,  190-1 
first  practical  steps,  251-254,  518-521,  527 

municipal   bonds   issued  for  revenue    producing    utilities    not    to    be 
counted  against  the  debt  limit,  229,  519,  539 
<I)  experience  proves  benefits  of  pub.  ownership,  192-202 
many  proofs  already  given,  further  illustratns,  192 
1.  waterworks  of  New  York  State,  192-5 

pub.  wrks  show  larger  consumptn,  192-5 
greater  efficiency,  192-4 

greater  tendency  to  extend  lines  to  suburban  districts,  194 
better  fire  protection,  195 
cheaper  service,  195 
large  savings,  195 

2.  Glasgow's  municipal  enterprises,  195-199 

city  farm,  ferries,  steamers,  wash  houses,  etc.,  196 

results,  196 

model  lodging  houses,  196 

public  baths  (and  Boston  note).  196 

public  laundries,  197 

pub.  tramways,  197 

conditns  of  labor  Improved  l>y  pub.  ow.,  197 
fares  greatly  reduced,  197 
service  improved,  198 
traffic  greatly  increased,  198 
profits  in  pub.  treasury,  198 

change  of  purpose  from  private  profit  to  public  service,  199 

a  business  owned  by  the  people  is  MORE  apt  to  be  run  in  the  In- 
terests of  the  people,  than  a  business  owned  by  a  Morgan  syndi- 
cate or  a  Rockefeller  combine,  199 

3.  English  Postal  Telegraph,  199-202 

England  tried  private  co.'s  for  over  25  years,  201 

extortns,  delays,  errors,  wastes  and  inadequacies  the  result,  199 

investigated  pub.  systems  in  other  countries,  199 
and  resolved  on  pub.  ownshp,  200 
objectns  of  co.'s,  200 

govt,  bought  the  lines  (1870),  200 

splendid  results,  200-1  summary 

compared  with  our  telegraph  record,  201 

4.  Chicago's  elec.  light  plants,  250-1,  134 
<J)  satisfaction  with  pub.  ownshp,  202-3,  242 

gas  and  electric  light,  202 

Glasgow  enthusiastic,  202 

telephone  and  teleg.,  202  (201) 

railroads,  post,  etc.,  203 

Foster's  admissions,  242 

Francisco's  misrepresentations  exposed,  245 
<K)  growth  of  pub.  ownshp.  203-210,  530,  531 

waterworks,  203-4,  531 

gas  and  electric  works,  205.  530-1 

street  railways,  206  (188-9  Eng.  and  530) 

telephone,  206-7 

telegraph,  207-8.  200 

railways,  208,  230-1 
<L)movemt  of  history  toward  union  and  co-operation.  208-210 

test  of  civilization,  210 

shall  we  go  back:  shall  Ave  give  the  postofflce  to  a  Rockefeller  trust. 210 

the  five  stages  of  developrnt,  210 


572  INDEX    OF    SUBJECTS. 

PUBLIC  OWNERSHIP-oon««ued  ,„.,„„, 

(M)  sentlmt  and  authority  favors  extension  of  pub.  owuslip,  211-2r!l 
Jefferson  and  Jackson,  211-2 
Clay,    Sumner,    Grant,    Edmunds,    Wanamaker,     Ely,     Abbott,     Lloyd, 

Lowell.  Brooks,  Walker,  etc.,  212 
congressional  reports  on  telegraph,  213 
opinions  of  eminent  men  on  pub.  ownship  of  st.  rys,  etc. 
Rev.  Lvman  Abbott,  21,3,  533,  Felix  Adler,  213-4 
Prof.  Elv,  214,  221,  Wm.  Dean  Howells,  214 
Henrv  D.  Lloyd,  214-5,  Dr.  Rainsford,  215-6 
Dr.  Spahr,  and  Dr.  Taylor,  216-217 
Rev.  E.  E.  Hale.  531-2 
Rev.  Washington  Gladden,  532 
Hon.  S.  M.  Jones,  Mayor  of  Toledo,  219 
Hon.  John  MacVicar,  Mayor  of  Des  Moines,  220 
Dr.  Albert  Shaw,  221-3 
Prof.  Bemis  and  Commons,  223,  532 
Hon.  Josiah  Quincy,  Mayor  of  Boston,  223-4 
Hon.  James  D.  Phelan,  Mayor  of  San  Francisco.  225 
Hon.  Hazen  S.  Pingree,  Gov.  of  Mich.,  226-7 
Hon.  Carter  H.  Harrison.  Mayor  of  Chicaj;:o.  227 
Gov.    Rogers.   Ex-Govs.    St.   Jolin  and    Larrabee,    and    other    dis- 
tinguished men,  227 
movemts  for  municipalizatn  of  st.  rys.,  228 
Natl.  League  for  Promoting  Pub.  Ow.  of  Monopolies.  218 
Natl.  Municipal  League,  228 

plan  for  model  charter,  228-9 
League  of  American  Municipalities.  228 
Boston    Common    Council    favorable    action    on    pub.   ow.  of    elec.  1., 

228  n 
Buffalo  conference,  229 
American  Federation  of  Labor,  229,  165 
increase  of  statutes  opening  the  way  for  pub.  ow.,  22f» 
San  Francisco  charter,  229,  420  (279,  419-421,  438) 
concerted    movemt    of    co.'s    to    intrench    themselves    behind    50-year 

franchises,  229 
Swiss  railroads,  growth  of  sentimt  and  final  vote  for  pub.  ow..  230-1 
(N) summary  of  argument  for  pub.  ow.  of  monopolies,  231-3 
(O)objectns,  q.  v.,  233-251,  533 

motives  of  those  who  favor  and  those  who  oppose  pub.  ow.,  248 

cause  of  pub.  ow.  aided  by  direct  legislatn.  347,  230-1,  303-6.  344.     (See  17) 

pub.  ow.  uec'y  to  true  municipal  liberty.  428 

laws  relating  to  pub.  ownership,  434,  436  table.  440-9.  512-6.  .")39 

see  HOME  RULE  (12)  to  (14);  LEGISLATIVE  FORMS  (3)  and  (4) 
San  Francisco's  freehold  charter.  420 
suggested  forms  for  future  enactment,  518  et  seq. 
PUBLIC  PURPOSE 

what  constitutes,  176  n 
PUBLIC  SENTIMENT 

sets  toward  public  ownrshp  of  monopolies.  211-231 

for  analysis  see  PUB.  OWNRSHP  (M) 
sets  toward  direct  legislatn,  352,  286-296  . 

for  analysis  see  DIRECT  LEG.  (D  III)  and  (F  22) 
PULPIT 

liberated  by  pub.  ownrshp  of  monopolies,  158-9 
PURPOSE 

changed  by  pub.  ownership  from  dividends  for  a  few  to  service  for  all, 

16.  199,  231 
public,  what  constitutes,  176  n 
RAILROADS 

growth  of  pub.  ownrshp,  208,  230-1 
Swiss,  230-1,  347 
RATES  (see  WATER,   GAS,  ELECTRIC  LIGHT,   ST.   RYS.,  TELEPHONE, 
etc.) 

(A)  of  private  monopolies,  excessive,  19,  70,  79;  see  MONOPOLY  (C.  1) 

gas,  22-24,  77,  79,  102  n.  523 

discrimination  in,  87 
raised  by  gas  co.'s  upon  consolidation,  102  n 
raised  by  political  corruption,  140-141 
electric  light,  24-27,  128-9,  2.j0,  523 
transit,  27-31,  524 
telephone  and  telegraph  service,  .31 
for  other  monopolistic  services,  32-33 
raised  by  trusts,  32-3,  88  oil 
reduction  of  by-laws  and  ordinances  resisted  and  defied  by  co."s,  82,  84 

(B)  lower  under  pub.  ownership.  115-1.36 

16  reasons  for  economy  of  pub.  ownership,  136-141 

1.  roads.  Glasgow  tramways.  Brooklyn  Bridge,  etc.,  115 

table  comparing  Brooklyn  and  St,  Louis  bridges,  116 

2.  telegraph,  reduction  when  England  took.  117,  200-1  (compare  31i 
telephone,  117-9,  128  table  (compare  31) 

saving  of  Federal  Government  by  putting  in  its  own  phones,  117 


INDEX  OF  SUBJECTS.  573 

KA^TES  (telephone)— continued 
Trondjem,  117 
Stockholm.  118 
France,  118 
co-operative  exchanges  iu  Sweden,  118 

ill  America  ^Grand  Rapids,  AVis.,  etc.)  118-119 
companies  independent  of  Bell,  119 
conversation  charges,  128 

3.  water.  l]y,  128,  table.  lt>5  (compare  20-22) 

Schenectady,  Auburn,  Syracuse,  120 

Randolph,  22 
Prof.  Ely's  investigation  and  opinion,  22 
facts  from  Baker's  AVater  Manual,  120-4 
private  co.  charges  43  per  cent  above  public  rates,  122.  20 
still  more  difference  between  private  rates    and    the    real    cost    of 

public  service,  123  table 
Brookline,  Hyde  Park.  Milford,  etc.,  124 
London  and  Glasgow,  125 
more  water  for  less  money  in  public  works,  22.  195 

4.  gas.  12.J,  lliS  table,  249  uompare  22-24) 

reduction  by  pub.  ownership,  125 

Hamilton,    Charlottesville.    Wheeling,    Henderson,    Indianapolis, 

Dayton,  and  Toledo,  125 
Richmond  and  Washington,   125-6 
Fredericksburg,  Duluth,  Wakefield,  127 
England.  127 
<-onipaiisou  (»t  private  and  public  rates  in  Va..  W.    Va.,    Pa.,    Ky. 

and  Oh.,  126 
present  cost  of  gas  in  public  works,  127 

5.  elect ric  light.  128  table,  129  table.  1.34  table.  242-5  (compare  24-27) 

a  few  crisp  contrasts,  128  table 

cost  before  and  after  public  ownership,  129 

Peabody,  Aurora,  Elgin,  130 

Detroit,  Aileghenv,  131 

Fairfield,  Bay  City,  Jacksonville,  132 

Jamestown,  Lansing,  132 

Springfield  (111.).  Logansport,  133 

present  cost  of  in  public  plants,  134  table 

public  charges  much  lower  than  private,  135 

Foster's  figures,  243-5 

6.  street  railways,  197 

(C*  reduction  of  rates  l>y  law,  sustained  by  courts,  182 
teleplione,  182 

street  rys.,  182-3  (Indianapolis  case,  183) 
water,  183 
lue.  nietluid  of  squeezing  water  out  of  capitalization,  179.  180-3.  521 
CO.  can't  claim  rates  suft.  to  yield  profit  on  fictitious  capital,  182 
if  rates  will  yield  any  profit  it  is  suft.,  182 
BEADING  TERMINAL 

bribery  case,  308 
RECALL,  POPUI>AR 

of  a  public  official  by  petition  and  vote  of  the  people,  313,  373.  386 
REDICTION  OF  KATES  (see  KATES),  179,  180-3,  521 
Haverhill  case  (gas),  .523.  .j3!)-.542 
suggested  amendnit,  to  secure,  520 
REFERENCES 

on  direct  legislation,  360.  378,  385 
on  civil  service  reform,  473 
to  municipal  leagues,  etc.,  13 
REFERENDUM  (see  DIRECT  LEGISLATION) 
REGULATION 

can  do  some  good,  179,  180-183 

an  important  means  of  squeezing  water  out  of  capitalization,  180-3 
but  fails  at  the  vital  points.  14,  105-112 
failure  of  in  Mass.,  -533,  compare  539-542  Haverhill  case 
RELIEF 

for  municipal  employes  in  sickness,  accident,  old  age,  etc.,  473  u 
REMEDIES 

for  .'vils  of  private  monopoly.  14.  16,  105,  112-114  (see  MONOPOLY  (F) 
for  defects  of  representative  system 
direct  legislation  q.  v.,  256-7 
proportional  representation  q.  v.,  474 
equal  suffrage.  477 

majority  choice.  484  (see  PREFERENTIAL  VOTING) 
for  municipal  dependence.  405  (see  HOMEI-RULE)  <5) 
for  political  corrui)tn  q.  v..  492-.503 
REl'RESENTATION 

does  not  represent.  259.  276.  .354-359  ,  ^r^x-       »v 

unless  guarded  bv  the  referendum  (see  DIRECT  LEGISLATION)   (A) 

(B)  (F  25j 
and  proportionate  representation.  474-483 
farmers  and  workingmen,  not  duly  represented.  3.56 


674 


INDEX    OF    SUBJECTS. 


REPRESEXTATIOX— co»(/J«Me'd 

lawyers  and  bankers  overrepresented,  356 
laws  may  be  passed  by  representatives  of  10  per  cent., 
of  voters,  355 
or  less  with  the  Speaker's  help,  or  hv  'nonns  of  corriiplion,  355  n 
REPRESENTATIVE  SYSTEM  (see  UEI'UKSENTATION) 
REPUBLICAN  GOVERNMENT 

Jefferson  on  nature  of,  295,  384 
RIGHTS  • 

Of  cities,  397,  415,  431.  436,  462 
see  HOME-RULE  for  Cities 
of  labor  violated  by  spoils  system,  471-2 

bv  monopoly  (^ee  MONOPOLY,  EMPLOYEES,  PUB.  OWNEUSHlP> 
RINGS  AND  BOSSES 

crippled  by  direct  legislatn,  313 
SAFETY 

disregard  of,  66-8 
grade  crossings,  66 
leaky  gas  pipes,  66 
electric  wires,  66-7 
trolley  accidents,  67 

'  no  cushioned  fenders,  cheaper  to  run  over  people,  68 
oil  below  legal  qualitj',  88 
dangerous  railroad  stoves,  93 
better  provided  for  under  public  ownership,  150 
railroads  in  U.  S.  and  Germany,  1.50 

Brooklyn  Bridge  and  N.  Y.  street  railway  accidents  comjjared,  loO" 
SALARIES 

exorbitant,  paid  by  monopolists,  70,  79,  140 
SAUO  of  franchises  at  auction,  449-452 
SATISFACTION 

with  pub.  ownership,  202-3,  242 
gas  and  electric  1.,  202 
Glasgow's  enthusiasm,  202 
telegraph  and  telephone,  202  (201) 
railroads,  postofflce,  etc.,  203 
Foster's  admissns,  242 

Francisco's   misrepresentatns  exposed,   245 
with  direct  legislation.  349,  330-4 

deeply  rooted  In  hearts  of  whole  people   (Switzerland!,   349 

people's  verdict  accepted  quietly  by  all  while  legislatures  are  scored 

(U.  S.),  330-4 
town-meeting  govt,  a'hd  constitutn  making  iiniversallv  regarded  as  our 
best  legislation,  264-9,  278 
with  merit  system  of  civil  service.  471,  473 
with  voting  by  machinery,  489-490  u 
SELF-GOVERNMENT 

justice,  liberty  and  developmt  demand,  9 
basic  principle  of  our  jurisprudence,  9 
but  not  thoroly  applied,  10-12 
as  to  areas— cities,  10 
as  to  departments  of  life — industry,  11 
as  to  methods— elective  aristocracy,  11 
what  is  needed  for  complete  self-govt,  12-13 
home-rule  for  cities,  12 
direct  legislatn,  etc.,  12 

public  ownership  and  co-operative  business.  12 
private  monopoly  destructive  of,  (opinion  of  Chief  Justice  Sherwood)  9.3. 

Senator  Hoar  and  Daniel  "Webster  to  the  same  effect.  93 
does  not  consist  in  choosing  some  one  to  govern  vou.  2.o9-263 
direct  legislation  essential  to.  259-263,  288,  294,  311,  352-3,  360 
mixture  of  issues  fatal  to,  315-7 
Inherent  right  to  local,  393-6 

not  generally  recognized  In  our  states,  387-392,  396  n 
see  HOME-RULE  (1)  to  (4) 

but  in  fact  much  liberty  given  to  cities,  431,  436,  462 
city's  right  to  make  and  amend  its  own  charter,  415,  425,  431,  435-8.  see- 
HOME-RULE  (7) 
SENATORS  U.  S. 

fraudulent  election  of,  89,  537-8 
popular  election  of,  538 
SENTIMENT  (see  PUB.  SENTIMENT) 
SEPARATION 

of  measures  aids  progress,  .30.5-6 

disentangling  Issues  very  important.  314-316 
of  state  and  municipal  affairs,  407-9,  411-413 
of  local  and  natl  Issues,  536 
SERVICE 

private  monopoly  aims  at  dividends  not  service,  14,  16.  63 
no  absolute  monopoly  as  yet,  however,  so  that  service  is  in  some  degree- 
related  to  dividends.  63 
Street  cars  crowded  and  ill-heated,  64 


INDEX  OF  SUBJECTS.  575 

SERVICE— ro/f/i/K/rrf 

poor  elecrlc  light,  04-5 

Inferior  telegraph  and  telephone  service,  65 

insufficient  facilities,  pipes,  wires,  rails,  etc.,  not  extended  to  country  dis- 
tricts, small  towns  neglected,  65-6 
better  under  public  ownership,  150-2 
Glasgow  tramways,   198 
English  telegraph,  200 
SIXGLE-TAX  THEORY,  529 
SOCIALISM 

objectn  raised  agust  pub.  ownership,  236 
SOCIAL  REFORM  UNION 

favors  direct  legislatn.  proportual  representatii,  pub.  ownership,  etc.,  368 
SOVEREIGNTY  (se<'  .SELF-(iOVI-:RNMK\T) 
of  people,  not  fully  secured,  261.  305 
requires  direct  legislatn,  <i.  v. 
SPECIAL  LEGISLATION 
illustrations  of,  398-402 

in  N.  Y..  538 
provisions  against,  422-3,  431-4 
sutrirested  measures  to  preven.  ."C2.  .")38 
SPOILS  SYSTEM  (see  CIVIL  SERVICE,  2) 

a  violatn  of  labor's  rights,  471-2 
STAP.ILITY 

favored  by  referendum,  327-334 
STANDARD  OIL  TRUST 

invading   the   municipal    field,    seeking  to   control,   gas.    electric   light   and 

street  railway  co.'s  in  large  cities,  87 
excessive  cliarges  of,  33 
exorbitant  profits,  39 
overcapitalization,    56-7 

frauds  of.  81  n,  87-91 
violations   of   law,    smninary   of   oil   atrocities,    87-89. 
trustees    Indicted,    87. 
manipulating   judges,    87. 
blowing   up    rival   refinery.    87. 
controls   gas  cos.   in  variotis  cities.   87. 
subsidizes  or  buys  up  antagonistic  paiiers.  87 

or   silences   them    with    threats,   88. 
tried  to  destroy  Toledo's  credit  so  as  to  defeat  public  gas  works,  87 
gets  up  fraudulent  "|)rotest,"  87 
discriminates  in  rates,  87,  88 

plugs  rival  pipe,  destroys  machinery,  tears  up  pipes,  88 
makes  outrageous  contracts  witli   railroads.  88.   89 
raises  prices.  88 

trick  to  beat  the  Pacific  oil  fields,  88 
corrupts  inspectors  and  sells  oil  below  legal  quality,  88-9 
persecution  of  Rice,  Matthews,  etc.,  89 
capturing  the  widow's  refinery,  89 
swindling  inventors,  89 
Indictment  for  bribing  public  officers,  89 
dodging  taxes,  89 

perjuring,  theft  and  mutilation  of  records,  etc.,  63.  89 
billing  cars   far   below    weight,   and   when   investigation   was   threatened, 

crippling  It  by  painting  out  the  numbers  of  the  cars,  89 
buying  a  U.  S.  senatorship,  89 
burning  account  books,  5'27 
trying  to  bribe  Attorney-Gen'l  of  Ohio,  527 
STATUTES  (see  LAW.  LEGISLATION,  LEGISLATIVE  FORMS) 
affecting  municipal  liberty,  436-7  table,  438-463,  539 
as  to  public  ownership,  438-449.  539,  512-516  (suggested  forms,  518-519) 
street  railways,  440,  447,  448 

telegraphs  and  telephones,  440-442,  447,  448,  449 
gas  and  electric  light,  442-449,  519 
requiring  sale  of  francliise  at  auction,  449-4.52 
about  local  consent  to  and  grant  of  franchises,  443-6,  448-9,  453-461 

see  HOME-RULE  (13)  (14),  462  table,  539 
providing   for   the   referendum,    280-3,   456   (.505-8),    (suggested   forms,   516) 
(see  DIRECT  LEGISLATION)  (D) 
great   number  of  refereudal   clauses  scattered  thru  our  law,  269,   369 
n,  456 
illustrations  from  la.,  269.  271.  444.  456 
Minn.,  442,  456,   458  (sweeping  clause) 
Wash.,  448,  456 

Wise,  449,  456  (Initiative  also) 
Mich.,  444,  456  (Initiative  also) 
Nebraska.  457  (Initiative  also),  280-1 
South  Dakota,  457  (Initiative  also),  282-3 
Arizona,  282 
authorizing  use  of  voting  machines,  489 

multiplicity  and  chaotic  state  of.  318-320,  398,  402,  465-6,  539 
New  Jersey,  318-9,  402,  466 
Mass.,  466,  539 


576  INDEX    OF    SUBJECTS. 

^^^v^'ferlng  of  Inanimate  (soo  OVERCAPITALIZATION) 

distributing  among  influential  people,  70,  75.  76 

gambling  in,  one  of  the  evils  of  private  monopoly,  90 

taxatn  of  face  or  market  value  of.  179,  181 

Mass.  laws  as  to.  181 
STREET  RAILWAYS 

1.  cost  and  rates  (see  (9)  below) 

fares  too  high,   27 

fares  in  Buffalo,  27  .  ,  , 

fiiros  in  various  cities  of  Europe  and  Anicnca.  table,  etc..  .iU-.il 

offers  in  Chicago,  28 

Detroit,  28 
cost  of  operating  in  various  cities,  tables,  etc.,  28-30 
elements  of  cost  in  New  York,  524 

2.  profits,  exorbitant.  Philadelphia.  36 

Detroit.  Montreal.  "Washington,  New  York,  37 

Mr.  Higgins'  statemt,  37 
monopoly  taxes,  216-7 
rapid  growth  of  traffic  and  earnings,  38 

3.  overcapitalization,  45-55,  181 

a  pernicious  practice,  protecting  extortn,  concealing  profits,  defrana- 
ing  the  public,  preventing  due  reductn  of  rates  and  obstructing 
public  purchase,  42-3,  57-8 

may  arise  from  false  bookkeeping,  careless  or  intentional.  ."> 

I'hiladelphia   railways,  45-6.  52 

Boston   railways,  45-6,  52,  54 

Chicago  railways,  46,  51 

Milwaukee  railways,  48,  51 

Cleveland,  48,  52 

Washington.  48,  52.  53 

New  York,  49-51,  53-55,  table,  49 

Springfield.  Mass.,  51 

Toronto,  49 

4.  poor  service,  crowded  and  ill-heated  cars,  etc.,  64-6 
disregard  of  public  safety,  accidents,  dangerous  bridges.  67 

cushioned  fenders  not  adopted,  cheaper  to  maim  i)eople.  68 
grade  crossings.  66 
dangerous  wires,  66 
overworking  motormen,  etc..  67 

5.  free  nasses  to  ward  heelers,  etc..  68 

frauds  of  co.'s.  political  corruptn.  etc..  71-3  ' 

"owned  the  council,  body  and  soul."  in  Dutroit.  says  Pingree,  d 
"all  powerful  in  Cleveland  politics,"  says  I>r.  Hopkins,  71 
Broadw-ay  franchise  secured  by  bribing  aldermen,  71 
Philadelphia  "Traction  Grab,"  and  "Railway  Boss  Act,"  72 
boodle  franchises  in  Chicago,  73 
the  West  End  investigatn  in  Boston,  73 
trying  to  kill  low  fare  road  in  Detroit.  82 

false  statemt  and  suppressn  of  facts.  55,  60  (West  End),  247-8  (Sullivan) 

refusal  to  aid  investigatn,  83,  84 

R.  P.  Porter's  ditflculties  with  facts.  533 

report  of  Mass.   Spec.  Com.  on  St.    Rys.,    unfairness    exposed    by    Prof. 
Berais,  223 

defiance  of  law  by,  81-4,  524 
smashing  property.  81,  524 
nullifying  ordinance,  82 
defying  reductn  of  rates,  82.  83 
breaking  tax  laws,  84 

Btocks  material  for  gambling,  90 

6.  tend  to  non-progrossiveness  ('XC(  pt  where  progress  will  liolp  dividends,  93 

low  character  product,  99-100 

and  imdemocratic  congestn  of  wealth  and  power,  90-3 

7.  111-treatmt  of  employees,  94-9 

strikes  in  Cleveland,  Brooklyn  and  Philadelphia,  95-8 

long   hours,    low   wages,   etc..    produced   by   overcapitalization   and   tlie 

struggle  for  dividends  on  water  (Judge  (iayuor's  opinion),   95,  96. 

98  n 
breaking  faith  with  employees,  97 
arbitrary  discharge  of  union  men.  97.  99  n 
vestibules  to  keep  motormen  from  freezing,  refused.  98 

8.  competition  impracticable,  101 

regulatn  has  done  some  good.  181,  182-3.  an  important  means  of  squeezing 
water  out  of  capitalization,  but  fails  where  most  needed,  1U6-112 
experience  of  Mass.,  110-2 

9.  lower  rates  under  public  ownership.  (JIasgow.  Brooklyn,  etc.,  115-6.  197 
economy  of  public  ownership.  16  reasons  for.  136 

excessive  salaries  i>d.  by  big  co.'s,  140 
co-ordinatn  with  other  industries,  141,  143 
Increase  of  trafiic  by  low  fares  under  pub.  ownership.  148 
10.  safety  better  provided  for  under  pub.  ownership.  1.50 

Brooklyn  Bridge  and  N.  Y.  street  ry.  accidents  compared,  150 


INDEX  OF  SUBJECTS.  577 

STREET    RAILWAYS— contiMMfd 

service  better  under  public  ownership,  151  (compare  64-6) 

11.  corruptn  less  under  public  ownership,  153-5 

''''^"Msfo?d;  ^r2!l:Fil:  i^''''•  ^'''"-  ^''-  ^^-  ^^^«"  "<>  ^'- 

merit  system  favored  by  pub.  ownership,  157,  216 

12.  labor  better  treated  under  pub.  ownership,  160-2,  165 

workers  under  pub.  ownership  are  co-partners,  160    162 

13.  opinions  of  eminent  men  in  favor  of  pub.  ownership  of  st    rvs    213-7    'i^^ 

14.  Glasgow's  tramways,  197  •    j   •.      "  •.  ^^o^ 

condltns  of  labor  improved  under  pub.  ownership    197 

fares  greatly  reduced,  197 

service  improved,  198 

traffic  largely  increased,  198 

profits  go  to  public  treasury,  198 

change  of  purpose  from  private  dividends  to  public  service.  199 

15.  pub.  ownership  may  be  secured  without  debt  or  taxatn,  184 

Hamburg  contract.  185 

Toronto  contract.  185-7 

Australian  method  with  st.  rys.,  189 

Milan  agreemt,  189 

London  proposal,  189 

Budapest  plan,  190 
niunioipalizatn  of,  in  England,  188-9,  530 
movemts  in  U.  S.  for  municipalizatn  of,  228 
growth  of  pub.  ownershp  sentiment  and  practice,  206,  213,  197 
concerted  movement  of  co.'s  to  get  50-year  franchises,  to  head  off  pub. 

ow.,  229 
steps  toward  public  ownership,  175,  251 

16.  general  method,  analysis,  175  et  seq. 
publicity,   183.  251 

reductn  of  rates  by  law,  sustained,  182-3 

Indianapolis  Case,  183 
reductn  of  rates  by  law  to  squeeze  out  water  in  capitalizatu,  179,  180-3. 

252,  521 
taxatn  of  face  and  market  values  of  stock  and  bonds  (if  more  than  actual 

value  of  plant)  in  order  to  squeeze  out  water,  179,  181,  252,  521 
municipal  home-rule  as  to  st.  rys.,  431,  436,  462 

See  HOME-RULE 
constitutional  provisns,  431,  434,  436,  462 

statutes  about  franchises  aud    pub.    ownership,    436,    462    (see    HOME- 
RULE  (13),  (14),  (15) 
local  consent  and  grant,  462  table.  436  table,  439,  448-9,  454,  458,  459- 

461,  539.  see  HOME-RULE  (14) 
sale  of  franchises  at  auctn,  449-452 

public  ownership,  436  table,  440,  447.  448.  see  HOME-RULE  (14) 
property  owners  consent,  457,  459.  460.  462  table 
referendum,  456-7,  see  STATUTES  or  HOME-RULE  (15) 
STREETS 

local  control  of,  436  table 

franchises  in,  see  FRANCHISES,  HOME-RULE  (13) 
STRIKES 

street  railway.  In  Cleveland,  Brooklyn,  Philadelphia,  95-9 

causes  of,  95-98 

are    industrial    rebellions— judicial    settlemt,    education     and     the     ballot, 

better  and  more  hopeful  remedies,  99 
losses  occasioned  by,  166  table 
eliminated  by  public  ownership,  166 
direct  leglslatn  tends  to  prevent,  329 
SUBJECTN  OF  CITIES  (see  HOME-RULE) 
SUFFRAGE 

extension  of  in  England,  see  POLIT.  CORRUPTN  (3) 
equal,  12 

a  corrollary  from  the  principle  of  proportional  representatn,  47 < 
but  subject  outside  the  limit  set  for  this  book,  477 
SUGAR  TRUST 

extortionate  charges  of,  33 
exorbitant  profits,  39 
overcapitalization,  56 
defiance  of  law,  87 
SUPPRESSION  (see  FALSE  STATEMENTS) 

of  inventions  by  telegraph  monopoly,  94 
TABLES  and  SUMMARIES 
1.  public  ownership,  summary  utatemt,  231-233 
economies  of  pub.  ow..  136-7 
National  League  for  promoting,  218 
The  Two  Bridges,  116 

a  few  crisp  contrasts  (pub.  and  private  chargefi)  128 
electric  light  before  and  after,  129 

present  cost,  in  pub.  plants,  134 
commercial  prices,  pub.  and  private,  24 
"  "      arcs,  private  co.'s,  25.  26 

"  "      plants,  growth  of  public,  206 

37 


578  INDEX    OF    SUBJECTS. 

TABLES   AND   SUMMARIES— eowHrtwed 
gas,  cost  in  pub.  plants,  126 

••    Bay  State  Co.'s  property  returns,  58-9 
water-works,  Indianapolis,  20 
Sau  Francisco,  21 
New  York  State,  193,  195 
"  "       cost  of  operatn,  various  cities,  21 

'«  "       rates  In  pub.  and  private  plants,  120,  122 

'<  "       consumptn  in  pub.  and  private  plants,  123,  147 

street  railways,  operating  cost  per  car  mile,  29  (60) 
•'  "  fares,  30 

dividends,  Phila.,  36 
"  "  Phila.,  stock  values  and  amts  pd.  in,  46 

"  "  growth  of  earnings,  38 

"  Inflated  capitalization,  New  York,  49 

"  "  cost  of  constructn,  51 

"  "  cost  of  lobbying  in  Boston,  73 

"  "  growtli  of  pub.  ownership  (Eng),  206 

telephones,  ratio  to  populatn,  66 

"  Trondhjem,  117 

telegraph  rates,  32 

Western  Union  compared  with  Eng.  teleg.  and  with  our  Post  Office,  164 
labor's  interest  in  pub.  ownership,  161,  162 
hours  and  wages,  pub.  and  private,  165 
losses  by  strikes,  166 

2.  monopoly,  antagonism  to  pub.  interest,  104 

oil  trusts  biography,  87-9 
distribution  of  wealth,  91 

3.  direct  legislatn,  summary  dtatrment,  362-370 

eminent  men  and  women  favoring  D.  L.,  290 

use  of  referendum  in  U.  S.,  272-7 

statutes  requiring  initiative  and  referendum  on  franchises,   etc.,  456, 

269  la. 
D.  L.  amendmts,  laws  and  charters,  279-283,  505  et  seq. 
analysis  of  points  for  D.  L.  law  or  amendmt,  299,  516  et  seq. 
mixture  of  issues  In  platforms,  316 

expenditure  for  army  and  edueatn  In  various  countries,  326 
Swiss  referendum  on  railroads,  230 
Swiss  referendum  results,  see  analj'sis  In  PUB.  OWNERSHIP  (F)  20 

4.  misrepresentation,  "represen'atlon  don't  represent."  354,  359  n 

representatives  out  of  proportn  to  vote,  355,  478-481 
compositn  of  congress,   337,   338 
mixed  issues,  316 

5.  municipal  dependence,  summary,  397 

consequences  of,  398 

home-rule,  summary,  427,  431  table,  43L  table 

"      charter  amondnits,  435-8,  508-511 
steps  toward  home-rule,  413 
prohlbitns  on  special  legislatn,  422 
city  rights,  ownership,  local  consent  and  power  to  grant,  etc.,  431,  436, 

462  tables 
conclusion  about  home-rule,  467 

constitutional  provisions  relating  to  municipal  liberty,  table  431 
statute  provisions  relating  to  municipal  liberty,  table  436-7 

6.  statutes  on  rights  of  cities,  436-7 

"         relating  to  local  consent  and  power  to  grant,  table  46;i 

"         requiring  initiative  and  referendum  on  franchises.  450 

"  "         consent  of  abutting  owners  to  street  francliises,  457 

"         permitting  use  of  voting  machines,  489 

7.  minority  elections,  presidents  and  governors,  485 
preferential  vote  for  mayor,  486 

automatic  ballot  laws,  489 

political  reform  in  England,  498-503 
TAXATION 

justifiable  only  for  a  pub.  purpose,  41 

for  benefit  of  enterprise  in  private  control,  not  for  a    pub.    purpose    (de- 
cision), 41 

without  representation,  private  monopoly  involves,  16,  40 

violation  of  tax  laws  by  co.'s,  82-85 

progressive,  of  incomes,  etc.,  521,  528,  530 

stopping  concentration  of  wealth  in  New  Zealand,  169 

benefits  of,  in  Switzerland,  346-7 

means  of  getting  funds  to  build  or  buy  public  works,  178-9.  '2.58 

should  be  progressive  both  as  to  time  and  as  to  amount  of  income.  .J>2S 

"equality  in   taxation   means   equality   of  sacrifice,"   (Judge  Cooley,    Mill, 
Walker,  etc.),  253 

incidence  changed  from  poverty  to  wealth  (Switzerland).  346-7 

indirect  taxes  unfair.  346-7 

pub.  ownership  may  be  attained  without  (or  debt  either).  184 

of  face  and  market  values  of  corporate  securities.  179.  ISl.  5"21 
(a  method  of  squeezing  water  out  of  capitalization) 

of  trusts  and  combines  at  specially  high  rates,  527 

of  co-operative  business  at  specially  low  rates,  527 


INDEX  OF  SUBJECTS.  57ft 

TAXES  (see  TAXATION) 

dodging  of.  by  street  railways,  etc.,  82-4 
paid  by  public  to  street  railways,  216-7 
TEACHERS 

freed  from  monopoly  pressure  by  pub.  ownership.  15S-9 
TELEGRAPH  (see  WESTERN  UNION) 

reduction  of  rates  when  England  took,  117 

economies  of  co-ordination  with  the  post  office,  143 

great  extension  of  lines  under  public  ownership  (Eng  ),  146 

use  of,  largely  increased  under  public  ownership,  148 

service  improved  under  public  ownership  (Eng.),  151,  152  n,  compare  65- 

English  Postal,  199-202 

England  tried  private  co.'s  over  25  years,  201 

extortns,  delay.*),  errors,  wastes  and  inadequacies,  the  result,  199 
investigated  pub.  systems  in  other  countries,  199 

and  resolved  on  pub.  ownership,  2(X) 
objections  of  co.'s,  200 
govt  bought  lines  (1870),  200 

splendid  results,  200-1  (summary) 
compared  with  our  telegraph  record,  201 
satisfaction  with  pub.  ownershp,  202,  207 
growth  of  pub.  ownership,  207-8,  200 

fsee  below  TELEPHONE-  (4)  to  end  entries  apply  also  to  telegraph 

TELEPHONE  (see  BELL  TELEPHONE  CO.) 

1.  Bell  rates  excessive,  31 
profits  exorbitant,  38 

inferior  service,   small   towns  and  country  districts  neglected,   etc     65-6 
compare  146.  151  ' 

unjust  discriminations,  69 
stocks  material  for  gambling,  90 
private  monopoly  tends  to  non-progressiveness,  93 

low  character  product,  99-100 

and  democratic  congestn  of  wealth  and  power,  90-3 

2.  savings  by  public  ownership  of,  117-119,  128  table 

Federal  Government,  117 

Stockholm,  118 

Trondjhem,  117 

conversation  charges,  128  i 

16  reasons  for  the  economy  of  public  ownership,  136  ' 

co-operative  exchanges  In  Sweden,  etc.,  118 

in  the  United  States,  118-119 
companies  independent  of  Bell,  119 

3.  competition  impracticable,  lUO 

regulation  a  failure  where  most  needed,  106-112 

4.  co-ordination  with  telegraph,  etc.,  143 

co.'s  confine  their  attention  to  populous  districts,  146 

otherwise  with  public  lines,  146 
service  improved  under  public  ownership,  151,  146,  117  (compare  05-6) 
r>.  satisfaction  with  pub.  ownership,  202 

growth  of  pub.  ownership,  206 
G.  method  of  securing  pub.  ownership.  175,  251 
publicity,  183,  252 

reduction  of  rates  by  law,  sustained,  182 

reduction  of  rates  by  law  to  squeeze  out  water  in  capitalization,  179,  180-3 
taxation  of  face  and  market  values  of  stock  and  bonds    to    squeeze    out 

water,  179,  181,  252.  .521 
pub.  ownership  secured  without  debt  or  taxation,  184 
French  telephone  franchise,  184 
7.  statutes  as  to  franchises,  local  consent  and  grant,  448-9,  454-5,  459,  460, 
461,  462  table,  339 
as  to  pub.  ownership,  440-2,  447-9,  539 
See  HOME-RULE  (13)  (14)  (15) 
THIRD  AVENUE  CABLE  LINE.  NEW  YORK 

overcapitalization  of,  49,  50 
TIN  PLATE  TRUST 

extraordinary  profits  of.  39 
TOWN-MEETING  SYSTEM 
excellent  results,  264 
people  cling  to  it,  266 
Brook  line,  266-7 

wins  out  agnst  county  system  (111.),  268 
TRAFFIC 
'  greatly  increased  under  pub.  ownership,  14G-9 
water  consumptn,  22,  146-7,  192-5 
gas,  148 

street  railways,.  148,  198 
telegraph,  148,  200-1 
TRIBUNE  MILLIONAIRE  LIST,  91-2 
TRUSTS  AND  COMBINES 

might  be  checked  by  taxing  them  at  specially  high  rates,  527 
might  be  controlled  thru  public  ownership  of  railroads,  527-8 
argument  for.  527 


■580  INDEX    OF    SUBJECTS. 

TRUSTS  &  COMBINES— continwed 

extortionate  charges  of,  wire  nail,    coal,    linseed    oil,    wliiskey,    sugar, 
standard  oil,  32-33 

exorbitant  profits,  39,  78,  79 

Boston  gas  trust,  inflated  capitalization,  profits,  etc.,  44,  78,  79 
UNEARNED  INCREMENT,  528 
UNITED  GAS  IMPROVEMENT  CO. 

reported  oflEer  of  50-cent  gas  to  Passaic,  N.  J.,  plus  a  large  bonus  for  the 
franchise,  523 

fraudulent  lease  of  Philadelphia  gas  worlcs,  75,  249,  306-7,  523 
VESTED  INTERESTS 

objectn  to  pub.  ownership,  238 
VESTIBULES 

often  refused  by  street  railways  till  compelled  by  law  to  give  them,  98 
VOTING 

machines,  488-490 

by  preferences,  484-7 
WAGES  (see  EMPLOYEES) 

above  competitive  rates  in  pub.  worlcs,  are  paid  for  the  lifting  of  labor  not 
for  the  production  of  light,,  etc.,  250 
WARS 

direct  legislatn  tends  to  prevent,  298,  369 

would  be  few  if  people  voted  them,  298,  369 
WATER 

1.  private  charges  excessive,  20,  122 
cost  of  operatn  in  various  worlds,  21 
profits  of  co.'s  sometimes  very  high,  20-2,  33 

Indianapolis,  20 
San  Francisco,  21 

2.  average  daily  consumptn  in  various  cities,  21 

inferior  service  of  private  co.'s,  pipes  only  where  they  will  pay  dividends, 
65  (compare  155) 

3.  withholding  of  data  by  private  co.'s,  22 
free  to  men  of  influence  (discriminatn),  69 
fraud  in  obtaining  franchise  or  securing  lease,  75 
effort  to  capture  Philadelphia  works,  528 

•4.  competitn  undesirable  and  impracticable,  100-1 
5.  benefits  of  public  water  supply.  Prof.  Ely  on,  22 

public  works  afford  low  rates  and  low  cost,  119-125,  128  (compare  20,  122) 
case  of  Randolph.  N.  Y.,  22 
Schenectady,  Auburn,   Syracuse,  120 

facts  from  Baker's  Manual  of  Amer.  Water  Works,  120-4 
private  co.'s  charge  43  per  cent,  more  than  public,  122,  20 
still  more  difference  between  private  rates  and  real    cost    of    public 

service,  123  table 
Brookline,  Hyde  Park,  Milford,  etc.,  124 
London  and  Glasgow,  125 

more  water  for  less  money  in  public  plants,  22,  192,  195 
16  reasons  for  economy  of  pub.  ownership,  136,  140 
co-ordinatn   of  water  service   with  other  industries  under  public  owner- 
ship, 142 
savings  by  public  operatn,  143 
profits  of  public  works,  143-4 

extensn  of  pipes  under  pub.  ownership,  145  (compare  65) 
consumptn  larger  under  public  ownership,  22,  146-7,  184  et  seq, 
pub.  and  private  works  in  N.  Y.  state,  192-5 

pub.  works  show  larger  consumptn  per  family,  192  et  seq. 
greater  efficiency,  192-4 

greater  extensn  of  lines  into  suburban  districts,  194 
better  fire  protection,  195  i 

cheaper  service,  195 
large  savings,  195 
growth  of  pub.  ownership,  203-4,  531  (Eng.) 
•€.  methods  of  securing  pub.  ownership,  175,  251 
publicity,  183,  252 
reductn  of  rates  by  law  to  squeeze  excessive  value  out  of  capitalization, 

179,  180-3.  252,  521 
reductn  of  rates  by  law  sustained,  183 
taxatn  of  face  and  market  values  of  securities    to    squeeze    out    excess, 

179,  181,  252,  521 
pub.  ownership  secured  without  taxatn  or  debt,  184 
municipal  home-rule  as  to,  436,  462  (see  HOME-RULE) 
constitutional  provisns,  431,  462,  S.  Car.,  448,  Ky.,  449 
statutes  about  franchises  and  pub.  ownership,  436  table 
462  table 
as  to  local  consent  and  grant,   454-5,    462    table,    see    HOME-RULE 

(13)  (14) 
as  to  sale  at  auctn,  449-452 
as  to  pub.  ownership,  438-449,  539 
as  to  direct  legislatn,  456,  280-3 

see  STATUTES,  HOME-RULE  (15),  DIRECT  LEG.  (D) 
WATERED  STOCK  (see  OVERCAPITALIZATION) 


INDEX  OF  SUBJECTS.  581 

WATER  WORKS 

of  New  York  State,  192-5 
WEALTH 

concentratn  of  in  cities.  9 

concentratn  of,  in  hands  of  monopolists,  90-92 
dangerous  to  free  institutions,  92-3 

(opinion   of   Chief  Justice   Sherwood,     Senator    Hoar    and    Daniel 
Webster,  92-3) 

distribution  of.  in  U.  S.,  91-2 

diffusion  of,  aided  by  public  ownership,  168-9 

aided  by  progressive  taxatn  of  incomes,  etc.,  169 
WEST  END  STREET  RAILWAY  (now  controlled  by  the  Boston  Elevated) 

overcapitalization.  4.5,  52 

cost  of  duplicating,  52 

erroneous  reports  of  operating  cost,  60 

lobbying,  Mass.  investigatn,  73 
WESTERN  UNION  TELEGRAPH  CO. 

rates  excessive,  31 
•  profits  excessive,  39 

John  Wanamaker's  statement,  39,  75-6  n 

Inferior  service,  65,  151,  152  n 

unjust  discrimination,  69,  81  n 

Interfering  with  freedom  of  newspapers,  81  n 

resort  to  liberty,  75  n 

frauds  of.  81  n 

violations  of  laws,  81  n,  86 

suppression  of  inventions  by  (Wanamaker's  statement),  94 

stocks  material  for  gambling,  90 

contrast  between  employees  of,  and  English  Postal  Telegraph  employees, 
162,  163-4 

contrast  between  employees  of,  and  U.  S.  mail  carriers,  162-3,  164-5 
WHISKEY  TRUST 

extortions  of,  32 
WIRE  NAIL  TRT'ST  (see  NAIL  TRUST) 
WOMAN  SUFFRAGE  (see  SUFFRAGE) 
WORKINGMEN  (see  EMPLOYEES) 

labor's  Interest  in  pub.  ownership,  161 

under  pub.  ownership,  are  co-partners,  160.  162 

American  Fed.  of  Labor  Resolution  on  Pub.  Own.,  165,  229 

no  adequate  representative  in  Congress,  356 


THE  CITY  FOR  THE  PEOPLE 

MUST  BE  FREE  FROM   ALL  PRIVATE  MONOPOLY 

IN  GOVERNMENT  AND  INDUSTRY; 

A  CITY  UNDER  SUCH   MONOPOLIES  IS  NOT  A  CITY 

FOR  THE  PEOPLE 

BUT  A  CITY  FOR  THE  MONOPOLISTS 


INDEX  OF  PERSONS  AND  PLACES. 


Abbott,   Rev.   Lyman 

on  direct  legislation,  291. 

on    municipal    ownership    of    st.    rys., 
213,    533. 
Adams,  Gbas.  Francis,  Jr. 

Chapters  of  Erie.  81  n,  539 

multiplicity  of  laws,  539 
Adams,  John  Quincy 

on  the  will  of  the  people,  361 
Adams,  Sir  Francis 

on    referendum    in    Switzerland,    351, 
378 
Addicks,  J.  Edw. 

Bay   State   Gas  transactions,   77-80 
Adler,  Felix 

municipal  ownership  st.  rys.,  213-4 
Alameda,  Cal. 

direct  legislation  in,  279 

municipal  electric  plant  in,  243,  244 
Albany,   N.  Y. 

street  railway  cost,  51 

waterworks,  204 
Alexandria,  Va. 

public  gas  plant,  rates  and  cost,  126, 
127,  145 

lack  of  progressiveness,  170 
Allegheny,  Pa. 

electric  lights,  130,   131,   133,   134,   135, 
170,  246 

city  loans,  interest  on,  139 
Alton,  III. 

water  charges  In,  123 

consumption   in.    124 
Ames,  la. 

electric  lights,  cost  of,  133 
Anderson,  Ind. 

electric  plant  in,  243 
Andrews,  Dr.   E.   B. 

N.    P.    O.    League,    member    of,    218 
Arizona 

referendum   In,   282 
Arkansas 

referendum  in,  273,  275,  284 

legislature,  corruption  In,  332 
Arrowsmlth,  Mr. 

on  referendum,  324 
Auburn,  N.  Y. 

water  rates  reduced  by  public  owner- 
ship, 120 
comparison  of  private  and  public 
ownership,   128,  140 

gas,  comparison  of  public  and  private 
ownership,  128 


Aurora, 
water  charges  in,  123 
electric   lights,    cost   of,    129,    130,   131, 
133,  134 
and  water  works  together,  142 
Australia, 
referendum  in,  288 
street  railways  In,  189,  208  • 

telephones,  public  ownership  of,  207 
Austria,  telegraph  rates  in,  32  n 
telephone  in,  207 
railways  of,  208 

methods  of,  189 
Badger,   J.    S.. 

on  electric  traction,  60 
Baker,  M.  N., 
jnunicipal  monopolies,  chap,  on  water 

works  in,  75,  203 
table  of  water  rates,   120-121 
on  advantages  of  city  ownership,  137, 

142,  234 
Manual  of  American  Water  AVorks,  20, 

122,  123,  144 
on  decisions  in  N.  Y.  and  Pa..  178  n 
Baltimore, 
street  railway  earnings,  growth  of,  38 
gas     companies,     union     of     advanced 
prices,  102 
rates    compared     with    Philadel- 
phia, 126 
date  of.  205 
merit  system  in,  530 
Bangor,  Me. 

electric  lights,  cost  of,  129,  130,  136 
Barrett,  Chief. 

on  electric  light,  135,  250 
Batavia,   111. 
water    works    and    electric    lights    co- 
ordinated, 142 
Bay  City,  Mich. 

electric   light,    cost   of,    129,    130,    132 
Belfast, 
street  railway  fares,  30,  31 
water  works  in,  204 
Belgium, 
telegraph,  rates  in,  32  n 

telephone  co-ordinate  with,  143 
service  in,   138 
public  ownership  of,  208 
telephones  of,  206,   207 
railways  of,   208 
local  option  of  cities  in,  483 
Bellefontaine,  Ohio, 
gas  rates  in  and  cost,  126,  127  ,145 
spoils  system  in,  234 


INDEX  OF  PERSONS  AND  PLACES. 


583 


Belmont,  Mass., 

water  supply  of,  142 
Bemls,   Prof.  E.   W.. 
on  gas,  cost  of.  in  New  York,  23 
in   England  and   U.   S.,   23,   43 
gas  capitalization,  45 
Philadelphia    gas   plant,    75,    249 
Mass.    Gas   Commission,    109,    152 
Virginia    gas    plants,    126 
gas  works,  144  n-145,  148,  151,  170, 

234-5,  241,  242 
Wheeling  gas  plant,  158 
on   street   railway   bribery,    73 
fares,  82 
report   of  Mass.   special   committee 

on   street   railways,   223 
Mass.   Ry.   Commission,  112 
on  eloctric  lighting,   135 
on    lighting    companies,    and    political 

corruption,   94.   140 
on  municipal  corruption,  154 
on    public    ownership,    202,    206,    532-3 
on    Francisco's   statistics,   246 
Berlin, 
street  railways  in.  30,  185 
electric  light  contract,   184-5 
Berne,  Switzerland, 

direct  legislation  in,  257 
Birmingham,  Eng.. 
compared  with  Boston,  266 
public  gas  works,  205 
home    rule   in.   406 
Blackpool,  Eng., 

street  railways  in,  206 
Blacksburg,  Va.. 

direct  legislation  in.  279 
Bliss,  Itev.  W.  D.  P., 

on  Cleveland  strike,  95 
Bloomington,   111., 
water    works    and    electric    light,    co- 
ordinated,  142 
economy  of  electric  plant,  228 
Boston, 
gas,  price  and  cost  in  1892,  23,  85 

Bay  State  Co.,  23,  35,  44-5,   58-9, 

77-81,   84.   107 
increase  in  watered  stock  of,  44-5 
political  bribery  by  Co.,  76 
union  of  cos.  with  N.  Y.  and  Chi- 
cago. 101 
Inefficiency  of  regulation  of  cos., 

107-8,  110 
president's  salary,  140 
Capt.    White   on   consolidation   of 
COS.,  101 
street  railways,   operating  cost  of,  29, 
60,  61 
fares,  31 
profits,  37 

cost  of  construction,   52,   53,  54 
earnings  of,  38 


Boston    (street   rys)— continued 
capitalization   of,   45 
money   paid   to    influence    legisla- 
tion,   64.    73 
great  strike  on,  94 
recognize  employees'  associations, 

99 
saving  by  consolidation,   101 
rates    compared    with    Glasgow, 

115 
compared  with  Toronto,   186 
passengers   compared   with   Glas- 
gow, 198 
public   ownership   of,    206 
electric  lights,  rates  and  losses  by  ex- 
tortion of  COS.,  25-7 
evasion  of  tax  laws,  85 
report  of  Com.  of  Common  Coun- 
cil,  26.   228 
profits,   36 

ex-Mayor    Matthews  on,    136 
telephone  service,  66 
overhead  wires,  danger  of,  67 
operations  of  Standard  Oil  Co.,  87-8 
legal  services  for  Tj  Road,  cost  of,  137 
city  loans,  interest  on,  139 
water  supply.  142,  204 
contrasted   with   Brookllne   and    Birm- 
ingham,   266-8 
referendum  in,   272,   535 

value  of.  304 
home  rule  in,  387 
Bradford,   Pa., 

water  charges  in,  123,  124 
Bradley,  Senator  James 
on   multiplicity  of  laws,   favors  refer- 
endum, 320 
Braintree, 
street  railways,  operating  cost  of,  29  n 
electric  lights,  cost  of,  133 
city  loans,  interest  on.  139 
Breidonthal,    Hon.   John,   218 
Bridgeport,   Conn., 

account  of  trolley  accident  in,  67 
Brockton,  Mass., 

town  meetings  in,  266 
Brookllne, 
electric  light   rates  and  losses   by  ex- 
tortion of  COS.,  25,  27 
water  works,  public  plant,  124 
contrasted  with  Boston,  266-8 
Brooklyn, 
electric   light   rates  and  losses  by   ex- 
tortion  of   COS.,   25,   27 
street  railways,  operating  cost  of,  29 
capitalization   of,    49 
cost  of  construction,  53 
political  bribery   by,   74 
.   great  strikes  on,  94-5,  96-7 
low  rates  on  bridge  road,   115-6 

compared  with  St.  Louis,  116-7 
safety  of,   150 


584 


INBEX  OF  PERSONS  AND  PLACES. 


Brooklyn — continued 
Sugar  Trust  profits,  39 

capitalization  of,  56 
danger  of  overhead  wires,  67 
gas,  price  unaffected  by  reduction,  85 

"     co.'s  owned  by  Standard  Oil,  87 
oil  prices  during  1892,  88 
Bridge,  employees  of,  160 

progressiveness  of,  170,  206 
Navy  Yard,  Civil  Service  In,  471 
Brooklyn  Bridge, 
public  railway  on,   lower  charges  and 
higher  wages  than  private  railways 
In  N.  y.  and  elsewhere,  115,  116 
compared  with  St.   Louis  Bridge,   116, 

table 
railway  accidents  on,  less  than  on  pri- 
vate  systems,    150 
excellent  treatment  of  employees,  160 
Brown,  A.   A.. 

on   direct   legislation,   289,   351-2 
Brown,   E.   C, 
on  gas  capitalization,  43  n 
Gas  Directory.  126 
Bryan,    W.   J.. 

on  direct  legislation,  288,  292 
Bryce, 
on  Gas  Ring  of  Philadelphia,  72 
on  town  meetings,  266 
on  direct  legislation  in  the  U.   S.,  379 
on  political  corruption,  496 
Buckle, 

on  origin  of  reforms,  305 
Buckley,   Wash., 

direct  legislation  in.  279 
Budapest,   Hungary, 
street  railways  in,  190 

operating  cost  of,  29 
fares,   30.   190 
fenders,  68 
plan   of,   190 
BnfFalo, 
street  railway  fares,  27,  28,  :w 

operating  cost  of,   28,,  29,   60 
oil  rates  In  1882,  88 
voting   machines   In.   490-491 
Burkll,   Herr  Carl. 

on  referendum  in  Switzerland,  345,  351 
Bushnell,  Gov.,. 
Commi^sloB  to  formulate  code  for  city 
administration,  538-9 
Butler,   Sen.   Marion. 

on  direct  legislation,  360 
California, 
compelled    to    buy    oil    fram    oil    com- 
bine, 88 
direct  legislation  in„  269,  272,  275,  284, 

288 
water  works  in.  204 
municipal  home  rule  In,  257,  415,  418, 
424,   435 


California — continued 
city  may  own  street  railways,  440 
telephones,    440,    447 
lighting   plants,    447 
street  railways,  447 
freehold  charter  amendment,  510-11 
Cambridge,  Mass. 
electric   light   rates  and   losses   by   ex- 
tortion of  COS.,  25,  27 
gas  companies  in,  43  n 
city  loans,  Interest  on,  139 
referendum   In,   273 
Canada, 
water  charges  in,   122 
water  works  in,  203.  204 
telegraph  in,  207 
referendum  In,  343 
Capen,   Pres., 

leader  in  civil  service  reform,  47;! 
Carlyle,   Thos.. 
on  self-interest  of  representatives,  312 
on   "mob-rule,"  380-1 
Charlottesville,  Va., 
gas,    reduction    of    rates    upon    public 
ownership,   125,   127 
rates  in  and  cost,  126,  127,  145 
spoils  system, '  234 
private  electric  plant,   142 
Chicago, 
gas,    cost   and   price.    23 
.  profits  In,  34 
union  of  companies,  101 
capitalization       compared       with 

Boston,   108 
Mutual  Gas  Co..  43-4 
street  railways,  fares  of,  28 

operating  cost  of,  28,  29,  60 
capitalization   of,   4i>-8>  50 
earnings  of,  38 
cost  of  const rwct ion,.  51.  53 
political    bribery    bo',    73-4 
defiance  of  law  by.  81-2 
taxation  of  cars,  8-1 
union  of,  101 
strike   on.   1G6 
telephones,    service^  06 

offer  by  capitalists    to    decrease 
rates,    117 
Standard  Oil  Co.^  operations  of,  87 

discrimination  of  railroads  to,  88 
electric  lights,  cost  f)<,   133^   139,  228 
wages,  IGl 

progi-essiveaess.  170,  249-251 
water  works  of,   144,   204 
"White  City."  172 
Clark,   Wm.    A. 

elected   to   Senate   by   bribery,    537-8 
Clay,    Henry. 

on  a  national  telegraph.  212 
Cleveland.   G  rover, 
elected   by   a   minority.  485 


INDEX  OF  PERSONS  AND  PLACES. 


585 


Cleveland, 
street  railway  earnings,  growth  of,  38 
capitalization,   48 
cost  of  construction,  52 
bribery   of   councils   by,    71 
resisting   laws,    82 
taxation  of,  82 
great  strikes  on,   94,  96 
gas  case,  35,   76,   84 
gas  bills  larger  after  reductn  of  rates 
than  before,  85  n 
affected  by  regulation,  126 
oil   combine,   freight   agreements   with 
railroads,  88 
raising  of  prices  by,  88 
Coler,    Bird   S. 
on  municipal  ownership,  539 
and  debt  limit,   539 
Colorado, 
attempts  by  oil  combine  to  shut  out 

oil   fields  in,   88 
direct   legislation   in,   269,    2T4,    284 
referendum    on   franchises,    456 
municipal    public    worlis,    water,    539 
lighting,  539 
Columbus,   Ind. 
water   works     and     electric     light    co- 
ordinated,  142 
Columbus,    Ohio. 

Standard  Oil  Co.  owns  gas  cos.  in,  87 
Commons,  Prof.  John  R. 
on    municipal     ownership    of     electric 

light,   65 
on   electric   lighting,    135,    151 
on    municipal    corruption,   154 
on  Francisco's  statistics,  246 
N.  P.  O.  League,  member  of.  218 
analysis    of    Tribune    millionaire    list, 

91 
Distribution  of  Wealth,  92 
on  Proportioaal   Representation,  482 
Connecticut. 
water  charges   in,    120,    121 
town    meetings    in,    268 
automatic   ballot   machines  in,   489 
Conwell,  Rev.  R.  H. 

N.    P.   O.   League,    member  of,   218 
Cooley,  Justice, 
on  inherent  right  of  local  self-govern- 
ment, 393.  394 
equality    in    taxation    means    equality 
of  sacrifice.   253 
Cowdery,  E.  G. 

on   gas   business,   241 
Cowles. 
A  Gen'l   Freight  and   Passonger  Post, 
81n 
Crane,    Gov. 
on  home  rule,  536 


Creswell,   Postm.   Gen'l. 
telegraph    rates,    U.    S.    as    compared 
with  Europe,  31  n 
Cross,  Henry  M. 
on    large   size   of   gas   Mils   In    Boston 
in  1892,   85n 
Dakota, 
twp.  local  option,  269 
referendum   in,   275,   284 
(See   South   Dakota.) 
Dangers,   Mass. 

electric  lights,   cost  of,   133-134 
Danville,  Va. 
gas,  reduction  of  rate  under  mnnicipal 
ownership,  125 
rates  in  and  cost,   126,  127,  145 
spoils  system   in,  234 
Dayton,   Ohio. 

gas  rate  in,  125 
Delaware, 
constitutional    amendments    In,    257 
direct  legislation  in,  284 
Denver,   Colo. 

water  works  in,  2(^ 
Depew,    Chaunce3-    M. 
charged    with    violation    of    law    thru 
use  of  stoves  on  railways,  94 
Des    Moines, 
water  rates,  62 

corporations,  resistance  to  IdVs  by,  84 
electric  light  offer,   188 
Detroit, 
electric  light,   cost  of,  13&,  131 

poles  used  by  other  compaufes, 

142 
service   of.    151,    170 
Commissioner's   report,    157-8 
civil  service  in  473 
water  works  in,  204 
referendum,    value   of,    304 
home  rule  in,  405 
D.   L.,   charter  law  of,   507 
street  railways,   fares,   28,   SO- 
profits,  36-7 
earnings,   38 
comparison  of  cost  with   Bostoa, 

60 
bribery   of  councils  by.   71 
strikes   on.   94.   9& 
laws  concerning,  177 
value   of,   180 
public   awnership   of,    206 
efforts    to    kill    low    fare    experi- 
ment, 82 
Dicey,   Prof.   A.  V. 

on  referendum,   286 
Dillon,   Judge, 
on   nature   of    municipal    corporatlonSy 
•    390,    408 
Dixon,    Judge, 
on  municipal  home  rule  in  Wise,  409 


586 


INDEX  OF  PERSONS  AND  PLACES. 


Doherty,   Mr. 

advice  to  Ohio  Gas  Light  Ass'n  by,  76 
Dow,  Alex. 

on  electric  plants,  135,  167-8 
Du  Bols,  Jas.  F. 

on   Switzerland  railroads,  230 
Dublin. 

street  railway  fares,  31 

water  works  In.  204 
Duluth,   la. 

gas,    reduction   in    rates   under   muni- 
cipal ownership.  127 

private  electric  plant,  142 

referendum   in,   272 
Dunkirk,   N.   Y. 

electric    lights,    134,    135,    136,    170 

city  loans,  interest  on,  139 

water    works    and    electric    plant,    co- 
ordinated,  142 
Edinburgh. 

street  fallway  fares,  31 
Elgin,   111. 

water  charges  in,   123 

electric   lights,    cost   of.   129,   130 
Elkhart,   Indiana. 

telephone  Independent  of  Bell,    119n 
Ellicott,  Edw.  B. 

on   electric  plants,   251 
Elliott,  Hon.  M.  J. 

on  direct  legislation,  284-5 
Ely,    Prof.   R.   T. 

on     benefits     of     pub.     ownership     of 
water  works,  22 

on  telegraph  service  in  U.  S.  as  com- 
pared with  Europe,  65,  151 

on  competition  among  gas  companies, 
lOln 

on  political  corruption,  155 

on  industrial  reform,  157 

on  railway  accidents,   150 

on  municipal  street  railways,  214 

on  public  ownership,  221 
Blyria,   Ohio. 

telephone   independent  of   Bell,   119n 
England,    (see   Great   Britain) 
Europe. 

telegraph  rates  as  compared  with  U. 
S.,    31 

telegraph   service,    149 

telephone    service    as    compared    with 
U.    S..   65.   66 

Standard    Oil    prices    lower    than    in 
America,  88 

gas  works  in.  205 

public  vs.  private  enterprise  In,  241 
Fairfield,  la. 

electric   light,    129,    130,    131,    132,    243 
Fall   River. 

electric  light  rates  and  losses  by  ex- 
tortion of  COS.,  25,  27 

gas  companies  in,  43n 


Fassett    Committee. 

investigation  of  municipal  government 
Field,    David    Dudley. 

on  enactment  of  local  laws,   318 
Flske,    Prof.    John, 
on  town  meetings,  266 
Civil  Government,  269 
Florida, 
gas  and  electric  light  law,  447 
referendum   on  franchises  in,   406 
Flower,  B.   O. 

on  Brookllne,  267 
Foote,  Allen  R. 

on  municipal  ownership,  141,  159 
Fort    Scott.    Kansas. 

telephones,  co-operative  plant  in,  118 
Foster,   H.   A. 
admissions    on    public    ownership.    145 

242 
figures    on    electric    light,    242,    243-5 
Fostoria,   Ohio, 
control  of  gas  co.  by  Standard  Oil  co., 
88 
France, 
telephones,  rates  compared  with  T^.  S., 
31 
franchise  of,  184 
reduction     of     rates     by     public 

ownership,    118 
taking  by  the  public,  207 
telegraph,  rates  compared  with  U.  S., 
31,  32 
public  ownership  of,  207-8 
railways   of,   208 
municipal  home  rule  In,  406 
Francisco,    M.   J. 
misrepresentations  as  to  public  owner- 
ship  of   electric   light,    245-6 
Fredericksburg,    Va. 
gas,  reduction  in  rates  under  munici- 
pal ownership,  127 
private  electric  plant,  142 
Garfield,   Gen.  J.  A. 
on      disproportionate      representation, 

476-7 
elected  president  by  a  minority,  485 
Gasklll,    J-udge. 

exposure  of  N.  J.  gerrymander  by,  477 
Gates,    Dr.    G.    A. 

on  direct  legislation,  293 
Gaynor,  John  A. 
on  telephones  in  Grand  Rapids,  "Wise, 
119 
Gaynor,  Justice,  Wm.  J. 
Brooklyn  street  railway  strike,   action 
in,    956 
letter  on,  96-7 
Georgia, 
water   charges,    120 
referendum   in,   273,  275 
disproportionate  representation  In,  479 


INDEX  OF  PERSONS  AND  PLACES. 


687 


Gerniany. 
telegraph  rates  in,   32n 

lo-ordlnated    with   telephone,    143 
public  ownership  of,   207-8 
telephone  service  of,  146 
public  ownership,  207 
railways   of,    203.   208 
gas  plants  in,  205 
municipal  contracts  in,  222 
municipal   rule  in,   406,   407 
Gladden,   Rev.  W. 
N.    r.    O.    League,    member  of,   218 
on     monopoly,    overcapitalization     and 
public    ownership,    532 
Gladstone,   Wm.   E. 
the   secret  ballot,   500 
efficient   corrupt  practices  act,   500-1 
gov't   loans  to  Irish  tenants  to  enable 
them  to  become  home  owners,  501-2 
Glasgow, 
municipal   enterprises,    195-199 
city    farm,    ferries,    steamers,     wash- 
houses,    slaughter   houses,    etc.,    196 
results,   196 

model   lodging  houses,   196 
public  baths  and  Boston  baths,  196 
public   laundries,   197 
public  tramways,  197 

operating  cost  of,  29,  60 
fares,   30,   31,   115.   148 
service,   151 
employees,  160-1 
progressiveness,  170 
date  of  operation,  206 
conditions     of    labor    improved 

under  public  ownership,   197 
fares   greatly    reduced,    197 
service  Improved,  198 
traffic  greatly   increased,   198 
profits    go    to    public    treasury, 
198 
change  of  purpose  from  dividends  for 

a  few  to  service  for  all,  199 
a    business    owned    by    the    people    Is 
more  apt   to  be  run   in  the  interests 
of  the  people  than  a  business  that  is 
owned   by   a   Morgan   or   Rockefeller, 
syndicate,    199 
water   works   in,    125 
gas   works  in,  205 
telephone   in,   207 
municipal  liberty  in,  406,  407 
effect  in  purifying  govt,  406 
Gonipers,    S. 
on  direct  legislation,  292 
N.   P.   O.   League,  member  of,  218 
Goshen,   Ind. 
water  works  and  elec.   lights  co-ordin. 
ated,   142 
Gould,  Jay. 
on  power  of  "Western  Union,  174 
on  political  bribery  by  the  Erie  Ry,  495 


Grand   Rapids.   Wise. 

telephones,   co-operative  plant,   119 
Gray,   Prof.  John  H. 
on    gas   capitalization,    45n 
on  Mass.  Gas  Commission,  109,  110,  111 
Great   Britain, 
gas,   cost  of  compared  with  U.   S.,  24 
English  rates  in  public  plants,  127 
profits  of  public  plants,   145 
telegraph,    cost    of   services,    32,    148 
rates  compared  with   U.   S.,   31 
under    private    ownership,    146, 

171 
reduction  upon  pub.  ownership, 
117 
experience,  199,  202,  208 
telephone   co-ordinated   with,    143 
service  of  148,  151,  152 
telephones   of,   206 

Eng.    rates   compared   with   U.   S., 

31 
under   private   ownership,    146 
railroads  of,  240 
street  railways  In,   188,   198,  206 

Eng.  law  on,  180 
municipal  home  rule  in,  406 
municipal    ownership    in,    530-1 
referendum  in  Eng.,  288,  343 
water  works  in  Eng.,  204,  531 
politicai  history  of  Eng.,  498  et  seq. 
Greenough,  M.  S. 

on   public  gas   plants,   247 
Griggs,    Gov. 
on    restricting    volume    of    legislation, 
318 
Gunton,  Prof.  Geo. 

on    direct    legislation,   293-4 
Hale,   Dr.   Edw.   E. 
on  public  ownership,  531-2 
X.  P.  O.  League,  member  of,  218 
Hamburg.   Ger. 

street  railway  contract,  185 
Hamilton,    O. 
gas,    competition    between    public    and 
private  companies,   102,   125 
rates  and  cost  of.  126,   127,   144 
court    decision    concerning,    178 
spoils  system  in,  234 
Hancock,  N.   Y. 
force  used  at  by  Standard  Oil  Co.  to 
prevent  competition,  88 
Hanover. 

street  railways,  operating  cost  of,  29n 
Harrisburg. 
gas,    prices   advanced    upon    consolida- 
tion of  COS.,   102 
city  loans,  interest  on,  139 
Hart,    Mayor, 
on  municipal  home  rule  and  the  merit 
system,    536-7 
Haverhill, 
gas  case,  35,  523,  539-542 


588 


INDEX  OF  PEKSONS  AND  PLACES. 


Haynes,   Prof.   Geo.   H. 

on  Representation  and  Suffrage,  264 
Henderson,  Ky. 
gas,  reduction  of  rate  nnder  municipal 
ownership,    125 
private   plants   of   State   compared 

with,   126 
cost  and  rates  In,  127 
Herron,   Prof.   G.   D. 
on  direct  legislation,  293 
member  N.  P.  O.  League,  218 
Hickok,   H.   T. 

on  reduction  of  price  of  gas,  85n 
Higgins,   Edw.   E. 
on  street  railway  profits,  37 

cost  of  construction,   46n,   51,   53 
security  of  investment  in,  56 
Higginson,  Col.  T.  W. 
on   public   ownership,   street   railways, 

etc.,   239-40 
member  N.  P.  O.  League,  218 
Hoar,    Senator, 
efforts     toward     investigation     of     oil 

combine,    89 
words   of,    about     the    power    of     the 
monopolies     to     overthrow     govern- 
.ment,  93 
Holmes,  O.  W.  (Chief  Justice) 

on  municipal  fuel  yards,  175  6. 
Holt,   Byron   W. 

on  the  trust  as  a  law-breaker,   87-9 
Holyoke,   Mass. 
water   works,    public    plant    in,    124 
gas,  public  plant  voted  for,  127 
Hopkins,  Dr. 
on  political  power  of  corporations,   71 
on  street  railway  power  to  resist  the 
law,   82 
capitalization    in    Cleveland.    48 
cost  of  construction,   52 
Howells,   Wm.    D. 
on   direct   legislation,   291 
on  municipal  street  railways,  214 
member  N.  P.  O.  League,  218 
Huddersfleld,  Eng. 

tramways  of,   161,  206 
Hyde  Park.   Mass. 
water  works,  comparison  witli  Brook 
line,  124,  142 
Idaho. 

referendum   in,   269,   274,   284 
Illinois, 
water    charges,    comparison    betweer 

public  and  private,  122,  123,  124 
town  meetings  in,  268 
referendum   in,   284,   288 
street  railways,  capitalization  of,  181 
water  works,  204 

legislature,   closing  scenes  of,   332 
local  option  for  cities  in,  483 


Indiana. 

law  requires  vestibules  on  street  cars 
in,  98 

public   water   works,    120,    18-S 

referendum   in,  284 

municipal   ownership  law,   51:5 

street    railways, 

capitalization  of  181 

fares  of,  183 

city    may    own,    440,    448 

legislature,    disgraceful   scenes  in,   332 

cities   may  own   telephones,   442 
lighting  plants,  442 

gerrymandering  in,  476 

automatic   ballot    machines    in,    48!;i 
Indianapolis. 

water  works,  20,  144,  203 

corporations,  resistance  to  laws  by,  84 

gas,    low    rate    compared    to    Standard 
Oil  gas  interest,  125 
Iowa. 

direct   legislation    in,   269,   284 

referendum  on  franchises  in,  456 

street   railways,   capitalization   of,   181 

water  works  in,  204 

public   lighting   plants.   444 

disproportionate  representation  in,  478, 
479 
Irwin,   Hon.   R.  W. 

direct    legislation,    285 
Ithaca,  N.  Y. 

working    library    for    councils,    191 
Jackson,   Andrew. 

on  the  direct  legislation  principle,  293 

on  public  ownership,  211 
Jacksonville,    Pla. 

pub.   electric  light  plant,   132,   523 
James,    Prof.    E.   J. 

on  gas   capitalization,   43n 

discussion    in     Pubs,    of     Econ.    Asso. 
on   gas   competition,    lOln-102 
James,    Henry. 

"The  British  Corrupt  Practices  Act," 
501 
Jamestown,    N.    Y. 

electric  lights,  cost  of,  132 
•  Jefferson,  Thos.  J. 

drafted  referendum  provision.  265 

on  the  town  meeting,  265-6 

on  direct  legislation,  295 

on  public  works,  211 

on    the    nature    of    republican    govern- 
ment, 295,  384 

on  democracy,  385 
Jenks,  Prof.  J.  W. 

on   Money  in   Politics,   496 

on    Suppression    of    Bribery    in    Eng., 
501 
Jersey  City, 

oil  prices  in   1892.  88 

election   frauds   in,   494 


INDEX  OF  PERSOJSfS  AKD  PLACES. 


589 


Jones,   Mayor  Sam'l. 
on  citizenship,  156-7 
on  municipal  ownership,  '219 
N.   P.   O.   League,   member  218 
platform  of  during  campaign  for  gov- 
ernor, 368 
message  on  contract  system,  free  em- 

ploj'ment  bureau,  etc,  497 
on   veto   power,  532 
Kansas, 
direct  legislation  in,  269,  284 
public   plaints,    water,    447 

lighting,   447 
municipal    public   ownership   in,   458-9, 

514 
disproportionate  representation  in,  479 
governor  elected  by  a  minority  in  1895, 
485 
Kansas   City, 
gas,   24 

street  railways,  cost  of  operating,  29n 
cost  of  construction,  51,  53 
free    passes    on,    68 
assessment  of  cars,  83-4 
electric  light  companies,  political  brib- 
ery by,   74 
referendum  in.  272 
freehold  charter  of,   416,  418 
Keeler,    Bronson. 
on  chaotic  state  of  gas  charges,  22 
article   in  Forum,   Nov.,   1888,   lOln 
Kentucky, 
gas,  rates  of  private  plants  compared 

to   public,    126 
town  meetings,  268 
direct  legislation  in,  269 
street   railways,    capitalization   of,    181 
cities  may  own  telephones,  441 

water   works,  449 
sale  of  city  fnuichises  in,  449 
disproportionate  representation  in,  478 
Kirke,    Edmund. 

on   the  referendum,  296 
Lansing,    Mich. 

electric  lights,  132 
La  Salle,  111. 
water  charges  in,  123,  136 
water   works   and  electric  light   co-or- 
dinated,   142 
Lawson,   J.   D. 

on     power     of     Penna.    Rd.    over   Pa- 
Supreme   Court.   86 
Lawson,  Thos.   W. 
on  cost  of  charter  of  Mass.  Pipe  line, 
77 
Lecky,   Prof. 

on  direct  legislation,  293 
Leeds,  Eng. 

street    railways   in,   206 
Legate,    HL    R. 
on  gas  rates,  85  n 
on  public  water  works,  125 


Leicester,   Eng. 

gas   works  in,   205 
Leipsic,  Ger. 

lighting  contract  in,  185 
Lewiston,    Me. 

water  charges  in,   123 

electric  light  rates,  129,  136 
Loxow,   Sen. 

investgation  of  N.  Y.  Police,  495 
Lincoln,    Abraham. 

on   referendum  princple,   295 

elected  by  a  minority,  485 
Lincoln,    Neb. 

decision  concerning  street  railways  in, 
183 
Lisbon,   la. 

electric  lights,  cost  of,  135 
Livermore,   Mary   A. 

N.   P.   O.   League,   member,  218 
Liverpool. 

street   railway  fares,   31 
owned  by  city,  206 
Lloyd,   H.   D. 

on    Sugar   Trust,    39n,   63 

on     Standard    Oil    Company,    56,     63, 
81n,   87n-89,    151 

on    railroad   discriminations,    69 

on  defiance  of  law  by  railroads,  86  n, 
87n 

on  direct   legislation,  291 

on  New  Zealand,  169 

on   municipal   street   railways,   214 

member  of  N.  P.  O.  League,  218 
Lobinger,  C.  S. 

constitutional  law,  271n 

on  tendency  toward  direct  legislation, 
369 
Logansport,  Ind. 

pub.    electric   light    plant,    133,    135 
London. 

tramways,  fares  of,  30,  31,  206 
offer,    189 
lines  owned  by  puble,  189 

water    works   of,    125,    204 
Lorimer,  Dr.  Geo.  C. 

N.  P.  O.  League,  member  of,  218 
Los   Angeles,    Cal. 

referendum    In,    272 

freehold  charter  in,  419 
Louisiana. 

referendum  in,  275,  284 

municipal   home  rule   in,  415,  41<!.   435 

freehold   charters,   257 

sale  of  city  franchises,  449 
Lowell,   Mass. 

electric  light   rates  and  losses   by  ex- 
tortion of  COS.,  25.  26 

gas  company,  capitalization  of.  43n 

street    railway    capitalization,    47> 
Luxembourg. 

telephone  service   in,   118,   146 
public  ownership  of,  207 


590 


INDEX  OF  PERSONS  AND  PLACES. 


Lynn. 

street    railways,    capitalization    of,    45 
Macaulay,   T.    B. 
prediction     concerning    industrial     op- 
pression, 328.  520 
MacVlcar,   Mayor, 
on  electric  light,   62 
public  ownerslilp,  220-1 
Maine, 
water  charges,  120,  121,  123 
town  government  of,  265,  268 
direct  legislation  in,  284 
telephones,  towns  may  own,  440 
disproportionate  representation  in,  478 
Manchester,   Eng. 
street  railways  in,  188 
gas  works  in,  205 
Manhattan,  Kans. 

telephone  independent  of   Bell,   119n 
Marks,  Wm.  D.,  Pres.  Edison  Elec.  Co. 
testimony  as  to  cost  of  electric  arcs, 
26n 
Marshall,    Justice. 

on   monopolies,    168 
Marshalltown,   la. 
electric   lights,   cost  of,   129,   136 

co-ordinated  with  water  works, 
142. 
Martinsville,    lud- 
water   works  and   electric   light   co-or- 
dinated, 142 
Massachusetts, 
gas  companies  of,  43,  77-80,  148,  151 

commission  of,   107-111 
street  railways,   capitalization  of,   46 
wages,  hours,  vestibules,  etc.,  98 
commission,  112 
water  works,  charges,  120-1 

comparison    between    public    and 

private,    122.    170 
plants  of,  204 
telephones,  service  In,  65 
towns  may  own,  440 
regulation  of  monopolies  in,  107-8 
direct    legislation    in,    264-5,    273,    284. 

288 
referendum    on    franchises    in,    456 
towns  of,  266,   268,  285 
public   works,    grants   of,    180-1 
lighting,  pioneer  law,  229 
monopolies  in,  94 
statistics  of.  243 
public  plants,  law  on,  446-7 
political  corruption  in,   308,  332 
local   self  government   in,   398 
selectmen    of   towns    may    grant    tele- 
graph rights  in,  461 
multiplicity    of   statutes    in,    466 
disproportionate       representation      In, 
478,   481 


Massachusetts— co»i<inMPd 
automatic   ballot    machines   in,   489 
fuel   yard   decision,    175 
Matthews,    C.    B. 

fight  with  oil  combine,  89 
Matthews,  Mayor  N. 
on  gas  profits,  35n 
Bay  State  Gas  case,  79,  80,  84,  44 
on    electric    light    charges,    130 
McCrackan,  W.  D. 

on  direct  legislation,  286,  345 
McEwan,   Hon.   Thos. 

on   direct   legislation,   285,   288,   375 
Mcllhenny,    John. 

opinion  on  gas  profits,  35 
Mead,  E.  D. 
leader  in  Civil   Service   reform,   473 
N.   P.   O.  League,  member,  218 
Medford,   Mass. 

water  supply  of,  142 
Meriwether,  Hon.  Lee. 
on  street  railway  assessments,  83 
capitalization  in  St.  Louis,  48 
Michigan, 
law  requires  vestibules  on  street  cars, 

98 
regulation  of  corporations  in,  108-109 
town  meeting  method,  268 
referendum   In,   275,   288 

on  franchises,  456 
Initiative   on   franchises,   4.")0 
"internal       improvements,"       (Detroit 

St.    ry.    case),    176-7 
street  railway  capitalization,  181 
water  works  in,   204 
political    corruption    in,    308 
legislature    misrepresents    the    people, 

3.32 
doctrine      of      local      self-government, 

393-6 
public  lighting  plants,  443 
disproportionate  representation  in,  480 
automatic  ballot  machine  In,  489 
Michigan  City, 
public    electric    light    plant,    how    cap- 
tured by  private  company,   74 
direct   legislation   in,   284 
Mlddleborough,  Mass. 
gas,    reduction    of    rates    under    muni- 
cipal ownership,  127,  144 
Milan, 
street  railway  fares,   30 
agreement  with,  189 
Mllford,  Mass. 
street  railways,  operating  cost  of,  29n 
water  works,   comparison  with   Brook- 
line,   124 
Mill,  John   Stuart, 
equality  in  taxation  is  equality  of  sac- 
rifice,   253 


INDEX   OF   PERSONS   AND  PLACES. 


591 


Mill,  John  Stuart — contintted 
on    taxing    of    future    unearned    incre- 
ment of  land  value,  528 
on  monopoly  taxes,  531 
Mills,  B.  Fay. 
on  direct  legislation,   292 
N.   P.   O.   League,  member,  218 
Milwaukee, 
gas   company,    capitalization   of,   43n 
electric  light  companies,  political  brib- 
ery  by,    74 
street    railways,    deal    with   employees 
thru  employees  association,  99n 
capitalization  of,  48 
cost  of  construction,  51 
Minneapolis, 
street  railways,  political  bribery  by,  74 
referendum  in,   272 
electric    light    offer,    185 
Minnesota, 
street  railways,  vestibules  required  on, 
98 
capitalization  of,  181 
city    may    own,    440,    447 
■  referendum   in,   274,   280,   284,   288' 
on   franchises,   456 
freehold  charters   in,   257,   415,   435 

constitutional    amendments,     509- 
510 
local  option  by  township,   269 
water  works  in,  204 
municipal     government     in,    laws    on, 
401,   458 
municipal  ownership  law,  514 
telephones,    cities   may    own,    442,    447 
public  lighting  plants,  447 
automatic   ballot   machines,   489 
Mississippi. 

referendum  in,  273,  284 
Missouri, 
constitutional  amendments,  257  n 
local  option  by  county,  269 
on  direct  legislation,   511-2 
referendum   in,    274,    284 
street    railway    capitalization,    181 
city  may  grant  franchise,  534 
municipal  home  rule  in,  415,  416, -422, 

435 
sale  of  city  franchises  in,  449 
Moffett,   S.   E. 
on   politilal  bribery,   310 
on    "Mixture  of   Issues,"   315-7 
on   representative  system,   383 
Monnett,    Hon.    Frank    S. 
Standard    Oil    case    in    Ohio,    bribery, 
burning  of  acct.    books,   etc.,   527 
Montana, 
direct  legislation  in,  269,  275,  284 
water  works  in,  law  concerning,  178 
purchase  of  U.   S.   Senatorship  in,  537 


Montreal, 
street  railways,  operating  cost  of,  29n 
profits  of,  37 
Moses,  Prof.  B. 

on  Swiss  government,  280 
Nebraska, 
local  option  by  county,  269 
street  railway  capitalization,  182 
water  works  in.  204 
municipal  home  rule  in,  415 
initiative    and    referendum    on     fran- 
chises,   456.    457 
referendum   in.   274,   280,   284,   288 
automatic  ballot  machines  in,  489 
Nevada, 
direct  legislation  in,  269 
telephones,  counties  may  own,  539 
Newark,  Del. 

electric  lighting,  cost  of,  135 
Newcomb,    Prof.    S. 
on  telegraphic  service  in  U.  S.  as  com- 
pared with  Europe,  65 
New  Haven, 
street  railways,  operating  cost  of,  29n 
water   works   in,   203 
New  Jersey, 
street  railways,  vestibules  voluntarily 

used  on,  98 
referendum  in,  272,  284,  285 
laws,  number  passed  in,  318.  466 
cost    of,    334-5 
on   municipalities,   402 
gerrymander  of  1892,  354,  477 
political  corruption  in  Jefsey  City,  494 
New  Orleans,  La. 
referendum   in,   272-3 
water  works  in.   203 
sale   of  franchises,   449 
New  York  City, 
gas,    investigation    in    1885    and    1897, 
22.  23 
profits   In,    34 
union  of  companies,  101 
advance   of   rates   under   consolida- 
tion,  102 
capitalization   compared    with   Bos- 
ton,   108 
comparison     with     Philada.     rates, 
126 
street  railways,  earnings  of,  38 
capitalization  of,  45,  49,  50,  51 
cost  of  construction,  50,  52-5 
cost  of  operating,  28-9,  60 
false   statements   in   Manhattan   L. 

Rep't,  61 
heating  the  cars,  64 
political  bribery  by,  71,  74 
resistance  to  laws,  82 
safety  of,  150 
vestibules  on,  98 
wages  on,  98 


m2 


ISDEX  OF  PEBSONS  AND  PLACES. 


New  York  City— continued 

men  dare  not  join  unions,  99 
L  roads,  union  of,  101 
low  rates  on  bridge,  115 

compared  with  St.  Louis,  116 
passengers,  98 
electric  lights,  charges,  25-6 
poor  service,  64,  151 
profits,  36 
telephone  service,  66 
danger  of  overhead  wires,  67 
oil  charges  in.  88 
city  loans,   interest  on,   139 
referendum   in,   272,   273,   280,   284 
water  works,  law  on  pub.  constructn, 
178 
charges,    120.    144 
history  of,  204 
home  rule  in.  429 
Greater,  charter  of,  280,  452 
disproportionate  representation  in,  481 
New  York  State, 
water  works  in,   192-5,  204 
legislature,  reduction  of  laws  by,  pos- 
sible, 318 
composition  of  in  1895,  331 
Passett    Comm.    on    municipal   govern- 
ment,  400 
sale  of  city  franchises  In,  449-452 
disproportionate  representation  in,  478, 

479 
automatic  ballot   machines   in,   489 
town  meeting  method,  268 
New   Zealand, 
stopping  concentration  of  wealth,   169 
progressive  taxation   and  pub.   owner- 
ship,   169 
North   Carolina. 

direct  legislation  in,  284 
North  Dakota. 
cities  may  erect  Are  signals,  440 
telephones,   city    councils    may    grant 
right  of  way,  539 
Norway, 
telephone     service     in,    65-66,    117-118, 
146,  207 
co-ordinated    with   telegraph,    14.'{ 
telegraph   in,   207 
railways  of,  208 
Nottingham,    Eng. 

public  gas  plant,   145,  205 
Oakland,   Calif. 

home  rule  in.  419 
Oberholtzer,    Dr.    K.    P. 
on   referendum,   271,    275 
on  municipal  home  rule  in  California, 
418 
Ohio, 
political  corruption  in  by  Oil  combine, 

89 
law  requires  vestibules  on  street  cars 
in.  88 


Ohio — continued 
gas,    public   plants,    126,    443,    539 

effect  of  law  on  city  regulation  of 
rates,  126 
referendum  in,  280,  284,  288 
street  railways,  capitalization  of,  181 

Idw   concerning,   358 
sale  of  city  franchises  in,  449 
disproportionate  representation  in,  480 
automatic   ballot   machines  in,   489 
telephones,   earnings   of   in,   525 
Opdyke,  Rev.  H.  D. 

on  direct  legislation,  285 
Oregon, 
water   charges  in,   120,    121 
direct  legislation  in,  269,  283,  284,  288 
proposed    constitutional    amendment, 
506 
Orton,  Mr. 

on   telegraph   operators,    163 
Paris,    France, 
telephone  rates,  public  compared  with 
private,  118 
Paris,   111. 
electric  corruption,   74 

co-ordination   with   water  works, 
142 
Passaic,  N.  J. 
offer  of  50  cent  gas  plus  a  large  bonus 
for  the   franchise,    524 
Payne,    Sen.    Henry   B. 
Senatorship  purchast  by  oil  combine, 
89 
Peabody,  Mass. 
electric  light,  cost  of,  130,  132,  135,  170 
city   loans,   interest  on,    139 
water  works  in,  204 
Pennsylvania, 
defiance  of  law  by  railroads  of,  S6n 
oil   rates  in  1882,   88 
oil  combine  evading  taxes  in,   89 
street  railways,  vestibules  voluntarily 

placed  on,  98 
water  charges  in,   120,   121,   123,   124 
gas,  rates  of  private  plants,  136 
water  works  in,   204,   445-6 
legislature,   disgraceful   scenes   in,   331 

composition   of,    339-40 
home  rule  for  cities  in,  388 
public  lighting  plants  in,  445-6 
referendum  on   franchises,   456 
proposed    franchise    direct     legislation 

bill,  508 
disproportionate  representation  in,  478 
colonial  land  policy  of,  502 
I'eoria,    111. 
water    works,    compared    with    Spring- 
field,  124 
I'helan,   Hon.  Jas.  D. 
on   public  ownership,   225-6 
mayoralty  campaign  in  San  Francisco, 
536 


INDEX  OF  PEKSOXS  Ajn>  PLACES. 


593 


Philadt'lpbia,  Pa. 
electric  lights,  rates  aud  losses  by  ex- 
tortion  of   COS.,    25,    27 
cost  of  arc.  26 
profits,    36 
investigation  of,  61 
testing  output,  64 
street  railways,  operating  cost  of,  28, 
29.  60 
profits,   36 
earnings,  38 

cost  of  construction,   52 
resistance    to    ordinances,    68,    82 
political  bribery.  72,  73,  74 
strike  in  1895.  97-98 
consolidation,  101 
legal  services  for,   137 
comparison  with  Toronto,  186 
public  ownership  of,   206 
gas,  municipal  plant,  154,  248-9 

lease  of.  75,   127,  248,  261,   271, 

523,  528 
rates,  126 
cost   of,    145 
date  of.  205 
salary  of  head.  140 
spoils   system  In,  234 
investigation  of  by  Mass.,  247 
history    of.    248-9 
referendum  refused,  304,  306-7 
telephone  service  in,  66 
water  works  of,  143-4,   172,  204 

attempts  to  wreck  public  plant. 
528 
Standard  Oil  Co.,  operations  of,'  87 
postal   cars  are  vestibuled,   98 
Atbara   bridge   contract,   240-1 
city  hall  in,  389 
city  loans,  interest  on,  139 
Phillips,    Wendell. 
DM  origin  of  reforms,  305 
on    educational    value  of    presidential 
(lections,    325 
Pintiiee,   Gov.   H.    S. 
on  corporations  in  politics,  71,  155 
suit  against  Detroit  street  railways,  84 
aid   in  street   railway   strike,    99 
on    friendly   relations   of    Mich.    Com- 

missrs.    to    corporations,    109 
on  direct  legislation,   293 
on   public   ownership,   226-7 
N.   P.  O.  League,  member  of,  218 
on  value  of  home-rule  to  Detroit,  405 
fight  with  corporations.  405 
Pittsburg, 
oil  rates,  increase  in,  88 
water  works  of,  148 
Pomeroy,    Eltweed. 
on   direct  legislation,   287,   378 
on  N.  J.   laws.  318 
D.  L.  movement  largely  due  to,  287 
'    Pres.   Natl.   D.   L.   League,  287 

3^ 


Port  Arthur,  Out. 
street    railways,    municipal   ownersiilp 
of,  143,  206 
Porter,   Robt.   P. 
objections     to     municipal     ownersWp, 
533-4 
Portland, 
sale    of    municipal    light  plant,   how 
forced.  74 
Portsmouth,   O. 
water  works  and  elecftic  light  co-or-  . 
dinated,  142 
Powderly,    Ex-Grand    Master   Workman 

on  referendum,   3.37 
Prussia. 

railway   system    of,    208 
Quay,  Senator  M.  S. 
John  Wanamaker  an  influence  back  of, 
76 
Quincy,  111. 
water   works,    compared    with    Spring- 
field, 124 
Quincy,   Hon.   J. 
municipal  statistical  dep't  established 

by,  191 
on  public  ownership,  233-4 
and  contract  system,  497 
Rainsford,  Dr.  W.  S. 
on  municipal  street  railways.  215-6 
N.  P.   O.  League,  member,  218 
Randolph. 

public  water  works.  22,  120 
Rhode  Island, 
water  charges  in,   120,  121 
early   referendum   in,  265. 
town    meetings   in,    268 
statutes,  465-6 
Rice,  George. 

fight  with  Standard  Oil  combine,  89 
Rifhmond,  Va. 
?as,  capitalization,  43  n.  145 
private  electric  plant,  142 
gas  plant,  rates,  125,  126,  127 
cost,   127 

political  effects.  154 
wages,   161 

progressiveness  of,  170 
referendum   clause   concerning,   190 
date  of,  205 
spoils  system,  234 
Mass.  false  rep't  of,  247 
Rittinghausen,    Martin. 

on  direct   legislation,  358-9 
Rochester.  i 

street  railway,   operating  cost,   29n 

earnings,    growth    of,    38 
city  loans,  interest  on,  139 
ajiitomatlc  voting  machines  in,  488-490 
Rockford. 
eloctrio  light  rates,  62 


594 


INDEX  OF  PERSONS  AND  PLACES. 


Rosewater,    Victor. 

refutation    of    Francisco's    statement 
concerning,    246 
Eobsevelt,  Hon.  Tlieodore. 

on  civil  service  reform,  473 

elected  by  a  minority,  484 
Rossltur,  C   L. 

on    electric    traction    compared     witli 
horses,  CO 
Russell,   Gov. 

on   municipal   lionie   rule,    399,   414 
Sacramento. 

electric  light  bribery,  74 

home  rule  in,  419 
Salisbury,  Lord. 

on  direct   legislation,   292 
San  Diego,  Calif. 

home   rule   in.   425 
San  Francisco.   Calif. 

water   works,  21,   203 

electric  light  rates,  25,  26 

freight   rates  for  oil,   88 

referendum   in,   272,   279,  419 

street  railways  In,  225 

freehold  charter  in,  229,  279,  418,  419 
421,  438 
sections  on  direct  legislation,  507 

pubic  ownership,  420 

civil  service  reform,  420-1,  536 
Savannah. 

street  railways,  operating  cost  of,  29n 

water  charges  in,  123 
Schenectady,   N.   Y. 

water  rates  reduced  by  public  owner- 
ship, 120 
Scotland. 

water  works  in,   204 
Scott. 

cancelling    railroad    rates   to    oil    com- 
bine, 88 
Seattle,    Wash. 

direct   legislation    In,    279 

home-rule  In,  419 
Sellgraan,  Prof. 

on  public  works,  210 

The  Five  Stages  of  development,  210 
Sergeant,    Gen'l    Man'g'r. 

electric  traction  vs.  horses,  60 
Shaw,   Dr.   Albert. 

on  political  corruption,   155 

Berlin   Electric   Light   Works,   184-5 

Glasgow  public  works,  197 

public   ownership,   221-3,   230 

municipal   contracts   in    Germany,    407 

local    self-government,    428 
Sheffield,  Eng. 

tramways  of,  161,  188,  206 
Sheldon.   Rev.   Chas.    M. 

member  pub.  ownership  leagtie,  218 
Sherwood,  Chief  Justice. 

monopoly  dangerous  to  freedom,  QR 


Sidney,  Ohio, 
control  of  gas  co.  by  Standard  Oil  Co., 
88 
Skelton,  Pres. 

on  dangerous  overhead  wires,  06,  67 
Sloane,    S.  J. 

on  direct  legislation,  286 
Smith,  Almon  E. 
on    water   works   of   New   York    State, 
192-5 
South  Carolina, 
direct  legislation  in,  269 

constitutional  amendment  on,  512-3 
city   may  build  water  works,   448 

light  plants,  448 
referendum  on  franchises,  45(i 
South    Dakota, 
referendum,    282,   284,   415 
circular  of  D.   L.   League.  357 
referendum  on  franchises,  457 
constitutional     amendment    on     direct 
legislation,   505 
South  Norwalk,   Conn, 
city    loans,    interest    on,    139 
electric    light,    151,    170 
Spahr,    Dr.    Chas.    B. 
on  distribution  of  wealth,  90 
on    street    railways,    capitalization    of, 
187 
municipalization   of,    216 
Speirs,   Prof.   F.   W. 
on  street  railway  profits,   36. n 

capitalization, 45    n    46n 
political   bribery,    72 
Spencer,  Herbert. 

on   government,   238 
Springfield,    111. 
water   works,    public   plant,    124 
electric   lights,    coslf  of,    133 
contract,    187 
public  plant,  187-8 
Springfield,   Mass. 
electric  light  rates,  25,  26 
gas  companies  in,  43  n 
street  railway   capitalization,   46n 
cost   of   construction,   51 
Stanton,  Elizabeth  C. 

N.   P.  O.  League,   member,  218 
Stead,    W.    T. 

on  political  bribei'y,  73 
Stickney,    A.    B. 

The   Railway   Problem,   69,    81  n,    86n 
St.   Louis,   Mo. 
electric   light  rates,   25.   26 
gas  profits  In,  34 
street  railways,   earnings  of,  SS 
capitalization  of,   48 
taxation   of,    ears,    82-3,    84 
public  ownership  of,  206 
telephone  service,  66 
oil  prices  in  hands  of  Independent  co., 
88 


INDEX  OF  PERSONS  AND  PLACES. 


595 


St.  Louis,  Mo. — continued 
Bridge  rates  compared  with  N.  Y.  and 

Brooklyn,   116-7 
referendum  in.  272 
freehold  charter  in,  416,  418,  419 
direct  legislation,  511 
Stockholm,   Sweden, 
telephone   competition   between   public 
and   private,    102 
rates  in,  65-66,  118 
St.  Paul, 
street  railways,  operating  cost  of,  29n 
earnings,  growth  of,  38 
Strachey,    J.    St.    Loe. 

on   direct  legislation,   293 
Sullivan,  J.   W. 
on  direct  legislation,   286,   345 
movement  for  D.  L.  largely  due  to,  287 
Sullivan,  P.  F. 

on   street   railways,  247-8 
Summer,    Chas. 

national   telegraph,   favored  by,  212 
S wanton,  Vt. 

electric  lights,   cost  of,   135 
Sweden, 
telephone  service  In,  65-66,  118,  146 
competition    between    public  and 

private    plant,    102 
co-ordinated  with  telegraph,  143 
public  ownership  of,   207 
telegraph  in,  207 
Swene,   Fire  Marshal. 

on  danger  of  overhead  wires,  66 
Swift,    Mayor. 

on  political  corruption,  154 
Switzerland.      See    DIRECT    LEGISLA- 
TION (F),  20 
telegraph  rates  in,  32 

public   ownership    of,    208,    347-8 
railroads  of,  208,  230-1,  347 
referendum   in,   301,   303,   343 
history    of,    344-352 
reversal  of  actions  of  legislators, 
357 
laws,   reduction  in  number  of,  318 
telephones,   service  of,   65-6,   118,    146, 
231 
co-ordinated    with    telegraph,    143 
public  ownership  of,  207 
expenditures    for    education    and    the 

army,   326 
no  anarchy  in,  329 
no  standing  army  in,  369 
proportional   representation  in,  351 
progressive  income  tax  In,   347 
Incidence    of    taxation    changed    from 

poor  to  rich,  346-7 
monopoly  charges  greatly  reduced,  352 
local  option  in   many  cantons  of,  351, 
483 


Syracuse, 
street    railways,    cost   of   construction, 

51 
water  works,  rates  reduced  by  public 
ownership,    120 
comparison  of  public  and  private 

ownership,    128,    170 
investigation  of  water  commsrs., 
146 
gas,  comparison  of  public  and  private 

ownership,  128 
city  loans,  interest  on,  139 
municipal   home  rule  in,  405 
merit  system  in,  536 
Tacoma,  Wash, 
referendum  in,  272 
home  rule  in,  419 
Taylor,   Dr.   C.  F. 

on  street  railway  charges,  216-7 
Tennessee, 
referendum  in,  273 
liffliting  provisions  In,  229 
Texas, 
water  charges  in  120 

comparison    between    public    and 
private,  122 
referendum  in,   273,  275 
legislature,    corruption    of,    333 
Toledo,  O. 
gas.    Standard    Oil    Co.    control    over, 
87,   88,   125,   151 
low  rates  under  municipal  owner- 
ship, 125 
Topeka. 
gas,  24,  34 
electric  plant  In,  170 
Trenton. 

gas,   24.   34 
Trondhjem,   Norway, 
telephone    service    in,     65-66,    117-118, 
151,  207 
United   States, 
water,   average   rates,    public   and  pri- 
vate,  20 
plants  in,   121-2,  203 
gas,     cost    of    compared    with    Great 
Britain,   24 
public  plants  in,  170 
telephones,  rates  compared  with  Eng- 
land and  France,  31 
telegraph,    rates    compared    with    Eu- 
rope, 32 
service  compared  with  Groat  Brit- 
ain, 148 
ownership  of,  207 

operators   of   contrasted   with   mail 
carriers,  163 
railroads,    safety    of,    150 
distribution   of  wealth   in,  91 
'  growth      of      pub.      ownership.        See 
GROWTH, 
use    of   referendum    in,    269.      See   DI- 
RECT   LEGISLATION. 


596 


INDEX  OF  PERSONS  AND  PLACES. 


Utah, 
direct  legislation  in.  283 

constitutional  amendment  on,  506 
street  railways,   city  may  own,  440 
cities  may   erect  fire  signals,  440 
municipal  public  ownership  in,  445 
Vanderbilt. 
cancelling    railroad    rates   to    oil    com- 
bine, 88 
Vanderlip,    Mr. 
letter  about    Chicago    street  railwys, 
47n 
Van  Wyck,  Mayor. 

elected  by  a  minority,  484 
Vermont, 
town  meetings  in,   268 
telephones,  towns  may  own,  440 
Vienna, 
street   railway    fares,    30 
telephones  in.   207 
Virginia, 
water  charges  in,   120 
gas,   cost  and  rates  in,   126-127 

spoils  system  in,  235 
referendum  in,  265 
town  meetings,  268 
direct  legislation  in,  269 
disproportionate  representation  in,  480 
Vreeland,   Pres. 
on    electric    traction    compared    with 

horses,  60 
salary  of,  140 

on  5  cent  street  railway  fare,  how  ap- 
portioned, 524 
Vrooman,  W. 
"Government    Ownership,"     reference 
to,  209.  238 
Waite,  Chief  Justice. 

on  State  laws,  183 
Wakefield,  Mass. 
gas,   reduction   of  rates  under  nuuiici- 
pal   ownership,    127 
Walker,   Pres.   F.   A. 
on  telegraph  service  in  U.   S.  as  com- 
pared with  Europe,  65,   151-2 
equality  In  taxation    means    equality 
of  sacrifice,   253 
Wallace,  Alfred  B. 

on  progressive  income  tax,  521 
Wanamaker,  Hon.  John 
on  telegraph  profits,  39 
on     inventus     supprest     by     Western 

Union,  94  n 
on    bribery    and    political    methods    of 

monopolies,  75-6n 
on  direct  legislation,  291 
on  a  postal  telegraph,  303 
on  Pennsylvania  elections,  537 
Washington, 
freehold  charters  In,  257,  415-7,  435 
text   of    freehold     charter     amend- 
ment, 56 


Washington,  D.  C— continued 
direct  legislation  in,  269,  275,  284,  288 
municipal  ownership,  statutes,  513-4 
referendum  on  franchises,  456 
city  may  own  telephones,  441 
lighting  plants,  448 
water  works,  448 
street  railways,  448 
Washington,   D.   C. 
electric  light   rates  and   losses  by   ex- 
tortion  of  the   COS..   25,   27 
street  railways,  operating  cost  of,  29 
cost  of  construction,  52,  53 
profits  of,  37 
capitalization  of,  48,  50 
grants  to,   180 
gas    company,    capitalization    of,    43 
high  pressure  to  increase  price,  85 
comparison   with   Richmond,   125-6 
comparison   with   Philadelphia,   126 
telephone,    comparison    between    rates 

public   and   private,    117 
water     works,     comparison     between 

rates  public  and  private,  122 
political  corruption  in,  308 
contract  system  and  direct  employmt, 
comparative  cost.  542 
Waurin,   Prof.   Louis. 

on  referendum  in  Switzerland,  343 
Webb,   Sidney. 

on  Individualism,  237-8 
Webster,  Daniel, 
opinion   that  free  government   cannot 
endure     where     the     tendency    is   to 
rapid  accumulatioji  of  wealth  in  few 
hands,   93 
Webster,  Noah. 

early   Pa.    constitution,   265 
Weir,  Mayor. 

electric  bribery,   74 
West,  Dr.  Max. 
on  New  York  franchises  In  Municipal 
Monopolies,    71ii,    148 
Westfield,  Mass. 
gas,   reduction  of  rates  under  munici- 
pal ownership,  127 
West  Troy.   N.   Y. 

electric  lights,  cost  of,  134 
West  Virginia, 
incorporation    of    street    railway    com- 
pany In  to  evade  N.   Y.   taxes,  96  a 
water  charges  in,  120,   121 
gas,    comparison    between    public  and 

private  plants,  126 
direct  legislation  in,  269 
Wheeling,  W.  Va. 
street  railway   strike,   94 
gas  capitalization,  43  n 

reduction  of  rate  under  municipal 

ownership,   125,   126 
wages,  161 
rates  and  cost,  127,  145 


INDEX  OF  PERSONS  AND  PLACES. 


597 


Wheeling,  W.  Va.  (gas)— continued 

corruption  under  municipal  owner- 

sliip,   154.   234-5 
board,    190 
electric  lights,  cost  of,  134,  135,  136 
service  of,   151 
Willard,  Frances  E. 
on  direct  legislation,  291 
on   poverty,   173 
member  N.   P.  O.  League,  218 
Williams,   Hon.   George  Fred. 

Bay  State  Gas  case,  80,  84 
Wilson,   Woodrow. 

on  the  representative  system,  316-7 
Winchester,    Boyd, 
on   direct   legislation     in     Switzerland, 
286.    350 
Wisconsin, 
vestibuled    cars   required,    98 
laws  on  municipal  government  in,  400 
public  lighting  plants,  445,  539 

water  works,  445,  539 
direct  legislation   in,   284 

on  franchises,  456 
sale  of  city  franchises,  449 
telephones,  cities  may  own,  539 


Wolcott,   Gov. 

on  decisions  made  by  the  people.   360 
Woodruff,  Hon.  C.   R. 

on  Phila.  gas  lease,  75 

on  public  water  plant  of  Philadelphia, 
628 
Woolley,   Hon.   Jno.    G. 

on    direct    legislation.    294 
Worcester. 

electric  light  rates,  and  losses  by  ex- 
tortion of  COS..  25.  27 

gas  companies  in,  43n  , 

water  works  in,  204 
Wright,    Carroll   D. 

on  Chicago  railway  strike,  81 

on  civil  service  reform,  471 
Wyoming. 

combine  to  shut  out  oil  fields  in,  88 

direct  legislation  in,  269 
Yerkes. 

on  overhead  wires,  dangers  of,  66 

declination  to  answer  railway  commit- 
tee's questions,  84 
Zurich,  Switzerland. 

street  railways,  operating  cost  of,  29n 

direct  legislation  in,  257 


m 


s&mmm 


/jy^HE  first  form  of  government  in  this  country  was  colonial.  After  the 
\j  revolutionary  war,  state  governments  naturally  succeeded  the  colonial 
governments.  Then  only  about  3  persons  in  100  lived  in  cities  of 
over  8000  inhabitants,  while  now  about  35  persons  in  100  live  in  cities  of  over 
Sooo.  Then  there  were  no  cities  of  great  size,  and  they  were  not  compact 
as  our  cities,  of  necessity,  now  are.  Lighting  was  simple  and  primitive  ; 
«ach  household  had  its  one  or  several  "tallow  dips,"  and  there  was  no 
public  lighting  to  speak  of.  Lanterns,  rather  than  street  lights,  were  de- 
pended upon  to  guide  footsteps  in  dark  streets.  This  was  the  entire  situ- 
ation concerning  lighting,  both  domestic  and  public.  As  gas  was  not  known, 
there  could  be  no  municipal  gas  question.  As  to  water,  there  was  a  well  in 
nearly  every  back  yard ;  and  if  not,  the  corner  pump  was  near  by  ;  and  the 
wells  in  so  sparse  a  population  were  not  unhygienic.  This  was  the  entire 
water  question  of  that  time.  As  the  people  in  the  cities  of  that  time  could 
easily  walk  from  home  to  business,  and  even  walk  home  for  mid-day  dinner 
and  back  to  business  again  in  the  afternoon,  there  was  no  local  transporta- 
tion question  as  we  have  it  now.  Hence,  with  a  population  so  largely  rural, 
and  with  our  present  municipal  necessities  unfelt  and  unknown, a  state  govern- 
ment fulfilled  every  need.  But  now  with  our  population  so  largely  urban,  and 
our  cities  grown  to  such  gigantic  size,  new  necessities  have  rapidly  come  into 
being.  Now  we  are  toucht  a  dozen  or  a  score  of  times  by  our  city  government 
to  once  by  our  state  government ;  for  example,  the  condition  of  the  water  we 
drink,  the  condition  of  the  streets,  the  cost  and  quality  of  gas,  which  is  now 
a  necessity,  the  public  order  and  our  private  safety,  etc.,  etc.,  etc.,  depend 
upon  our  city  government.  This  then  has  become  of  direct  and  constant  im- 
portance to  us.  While  state  government  was  all  that  was  needed  a  century 
ago,  now  the  importance  of  municipal  government  is  by  far  the  greatest.  As 
those  who  planned  our  state  governments  in  the  i8th  century  could  not  foresee 
the  needs  that  would  arise  in  the  19th  century,  they  could  not  be  expected  to 
provide  for  them.  We  who  now  see  and  feel  these  new  needs,  should  be 
zealous  in  our  endeavors  until  our  cities  are  made  completely  free  from  the 
interference  of  state  legislatures  in  local  matters  (freedom  not  needed  then 
but  sorely  needed  now),  and  until  the  people  of  our  cities  are  also  made 
completely  free  from  the  domination  of  councils  and  politicians,  by  the 
introduction  of  the  initiative  and  referendum. 


^m 


t9-Tliis  hook  tnay  he  had  houna  in  cloth— Price,  91.  OO.'^&t. 


EQUITY  SERIES.         ^"Vi'm  pe?'Ye«.'^'''        Single  Numbers,  26c 
Voii.  L—  No.  1.  September,  1898, 


RATIONAL  MONEY 

— Parsons. 

A  NATIONAL  CURRENCY 

INTELLIGENTLY  CONTROLLED  IN  THE  INTERESTS  OF  THE  WHOLE  PEOPLE 

AND  CAREFULLY  REGULATED  IN  REFERENCE  TO  THE  TRUE 

COMMODITY  BASIS,  THE  REAL  CONSTANT  OF 

EXCHANGE,  BY  MEANS  OF 

THE   MULTIPLE    STANDARD 

IN  SUCH  A  WAY  THAT 
THE  DOLLAR  SHALL  REMAIN  CONSTANT  IN  ITS  PURCHASING  POWER 

FROM  MONTH  TO  MONTH  AND  YEAR  TO  YEAR, 

REPRESENTING  ALWAYS  THE  SAME  AVERAGE  AMOUNT  OF  COMMODITIES  AND  SERVICES 

AND  GIVING  TO  ITS  POSSESSOR  AT  ALL  TIMES  THE  SAME  AVERAGE  COMMAND 

OVER  THE  WORLD  OF  PURCHASEABLE  THINGS. 

A'o  Cop)rigkt. 

On  th«  coutrarr,  ao  iuritation  is  extended  to  all  to  do  their  uimoul 
in  erery  way  to  spread  the  truth  contained  in  the  following  pages. 
Newspapers  and  magazines  are  at  liberty  to  quote  as  freely  as  they  will, 
due  credit  only  being  respectfully  asked. 


PiJBLiSHT  BY 

C.    F.    TAYLOR 

1520  Chestnut  Street,  Philadelphia,  Pa. 


SAMPLE  PAGES  OF  "RATIONAL  MONEY." 


age  to  &ge — an  ethical,  impartial,  democratic  dollur>  n  dollar  that 
will  act  as  a  fly  wheel  to  keep  the  national  eng-ine  working  smooth- 
ly all  the  time,  instead  of  producing  or  aggravating  industrial  dis- 
aster and  explosioE.  The  price  line  must  become  a  sale  horizontal 
instead  of  the  dangerous  zigzag  of  a  bolt  of  lightning. 

Price  line  1866- 1698-  Gold  Prices 


ALDRICH   DATA      1866  -  1491    "AMERICAN  "  DATA     1691-8. 


1660 


1870 


1880 


1890 


1896 


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since  18(3  the  chatn  lightning  of  prices    has   been    golden    (see   cut   on 
page   \),   before  that   time   it   was   bimetallic     (as     shown     in     this     cut). 
^ either  of  these  monetary  thunderbolts  appear  to  have  much  afEection  for 
tlie  safe  and  honest  horiscontal. 


Price  line  1837-1673   Bimetaluc Prices 

Aldrich  DATA    I&40  - 1873  - 183?- 1640     broad   estimate    from 

DATA    OF    W^J    G.  5UMNER   »  MULHALL'S    CITATIONS. 


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1870  1873 

-140 


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If  the  weekly  or  even  the  quarterly  variations  had  been  noted,  the 
lines  in  both  of  these  diagrams  would  have  been  full  of  saw  teeth.  If  the 
maximum  and  minimum  price  levels  had  been  marked  instead  of  the  yearly 
average,  the  extremes  would  have  been  far  greater  than  those  shown— the 
drop  In  a  panic  being  sometimes  more  than  double  that  shown  by  the 
yearly  averages  (see  p.  57).  If  actual  prices  had  been  taken  (instead  of  metallic 
prices),  we  should  have  found  that  during  the  war  period  of  unregulated 
issue  of  imperfect  legal  tender  paper,  the  price  line  would  have  soared  76 
points  above  the  top  of  the  diagram.  Altogether  these  diagrams,  full  of 
ruin  and  injustice  as  they  are,  are  yet  mild  representatives  of  the  pres- 
ent money  system.  They  tell  part  of  its  evils,  but  by  no  means  all,  nor  do 
they   give   full   emphasis  to   what   they  do  tell. 


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No.  2  of  "EQUITY  SERIES"   is 

The  Land  Question  from  Vari- 
ous Points  of  View* 


It  is  a  book  of  246  pages,  consisting  of  special  articles  by 
various  writers  and  investigators.     Price  only  25  cents. 

The  following  outline  of  its  contents  will  give  an  idea  of 
its  scope  : 

1.  A  Brief  History  of  Land  Tenures  and  Titles  from 

Earliest  History  and  Various  Countries. 
This  is  a  brief  historical  review  of  the  relation  of  man  to 
land  from  earliest  time  to  the  present. 

2.  Distribution  of  Land-  in  Various  Countries. 

This  chapter  passes  in  rapid  review  the  known  statistics  of 
land  distribution  in  each  of  the  leading  countries  of  the  globe, 
particularly  noting  the  tendencies  of  recent  decades  in  relation 
to  land  distribution. 

3.  Alien  Landlordism  in  America. 

This  chapter,  written  by  ex- Congressman  John  Davis,  of 
Kansas,  contains  facts  and  figures  that  will  stir  the  thought  of 
the  most  indifferent  mind. 

4.  Our  System  of  Distributing  the  Public  Lands. 

This  is  a  chapter  of  55  pages,  written  by  a  gentleman  in 
close  touch  with  the  Interior  Department,  and  therefore  familiar 
with  all  the  facts,  which  are  substantiated  by  references  to 
public  documents.  He  characterizes  our  system  of  distribution 
as  follows:  "It  has  been  an  instrument  of  fraud,  injustice 
and  demoralization."  This  chapter  is  perhaps  the  most  inter- 
esting account  of  the  history  of  this  branch  of  our  public  ser- 
vice that  was  ever  written.  To  the  land  student  it  is  of  great 
importance,  and  to  the  general  reader  it  is  more  interesting 
than  a  thrilling  romance. 

5.  Provisions  of  our  Federal  and  State  Constitutions 

relating  to  taxation,  showing  what  property  must 
be  taxt  and  what  property  may  be  exempt  from 
taxation,  thus    showing  what   constitutional  ob- 


structions  there  are  to  the  various  land  reforms 
no^v  being  proposed. 

This  chapter  was  prepared  by  a  trained  lawyer,  employed 
for  the  purpose,  and  is  of  great  value  to  those  interested  in  the 
single  tax  or  other  proposed  land  reforms.  Each  constitution 
is  considered  seperately,  followed  by  comments  strictly  legal 
and  impartial  in  character,  relative  to  the  possibility  of  the 
proposed  land  reforms  under  present  constitutions.  The  legal 
research  involved  in  this  chapter  is  of  peculiar  value  to  land 
reformers. 

6.  Religion  of  the  Land  Question. 

The  author  of  this  chapter,  Ernest  H.  Crosby,  ot  New 
York,  may  fittingly  be  called  the  Tolstoi  of  America.  This 
contribution  is  fully  up  to  his  usual  high  standard. 

7.  Two  Parables. 

All  that  is  necessary  to  say  is  that  these  are  by  the  gifted 
writer,  Bolton  Hall.  These  brief  parables  throw  a  strong  Hght 
on  the  wrongs  of  unjust  land  conditions. 

8.  Forestry. 

"  Land 'Reformers  "  have  given  very  little  attention,  as  a 
rule,  to  forestry.  Many  ancient  nations  passed  away,  and  the 
countries  became  deserts,  because  of  the  neglect  of  forestry. 
By  wise  forethought,  some  of  the  European  nations,  notably 
Germany,  are  avoiding  this  fatal  mistake.  France  is  endeav- 
oring to  correct  past  mistakes  in  this  direction,  and  Spain  and 
Italy  should  do  so.  Examination  of  facts  shows  that  we  are 
rushing  rapidly  toward  the  danger  line.  In  the  space  of  18 
pages  this  subject  is  presented,  clearly  and  vigorously,  giving 
all  the  leading  facts  and  statistics  for  this  and  other  countries, 
together  with  a  synopsis  of  the  legislation  in  this  country,  both 
state  and  national,  that  has  been  accompUshed  thus  far. 

g,    10,   and  11 — 

These  three  chapters  are  devoted  to  the  discussion  of  the 
Single  Tax,  both  pro  and  con.  In  this  discussion  practically 
all  the  leading  arguments  both  for  and  against,  may  be  found. 
These  chapters  will  enable  those  unacquainted  with  the  Single 
Tax  theory  to  post  up  quickly  and  easily. 
12.     John  Stuart  Mill's  Plan  of  Land  Reform. 

Here  is  perhaps  where  the  advocates  and  opponents  of  the 
Single  Tax  may  meet  and  compromise.  This  chapter  is  a 
fitting  close  to  a  book  that  covers,  tersely  but  amply,  the  entire 
subject  of  land  reform. 


SAMPLE  PAGES  OF— 

"  THE  LAND  QUESTION  FROM  VARIOUS  POINTS  OF  UE». 


PREFATORY  REMARKS. 


The  land  question  is  a  very  old  question,  and  a  many  sided 
problem.  Many  theories  have  been  proposed  to  solve  this  problem. 
Many  books  have  been  v^ritten  on  this  subject,  but  their  purpose 
has  usually  been  to  propagate  some  special  theory.  My  purpose 
has  been  to  produce  a  book  which,  will  present  the  problem  from 
various  points  of  view,  and  from  the  pens  of  various  writers.  No 
such  attempt  has,  in  my  knowledge,  ever  been  made  before.  How- 
ever, I  will  feel  flattered  if  others  will  follow  with  the  same  broad 
object  in  view,  and  improve  on  this  attempt  as  much  as  possible. 

The  broad  question  of  land  value  might  be  divided  into  four 
general  heads: 

1.  The  agricultural  value  of  land;  depending  upon  productivity 
and  convenience  to  markets. 

2.  The  timber  value  of  land;  depending  on  the  kind,  size  and 
number  of  the  trees,  and  convenience  to  markets. 

3.  The  mineral  value  of  land;  depending  upon  the  mineral  bear- 
ings, whether  rocks,  metal,  coal  or  oil,  and  convenience  to  markets. 

4.  The  site  value,  or  communal  value,  of  land;  that  is,  the  value 
which  is  created  by  the  presence  of  the  community. 

While  numbers  1,  2  and  3  depend  in  great  measure  upon  access 
to  communities,  for  commimities  are  "markets,"  number  4  depends 
entirely  upon  the  presence  of  the  community.  It  is  not  strange 
that  problems  arising  from  land  and  its  various  values  from  various 
sources,  with  all  the  mighty  interests  involved,  should  have,  from 
time  to-  time,  engaged  the  attention  of  philosophers,  theorists  and 
statesmen;  and,  being  still  unsettled,  that  they  should  now  press 
for  rightful  settlement. 

A  primeval  forest  contains  valuable'  timber  which  no  human 
hand  has  planted  or  protected.  By  the  advance  of  kiivilization,  and 
its  improved  methods  (as  rail-roads,  etc.),  this  forest  becomes  ac- 
cessible.   To  whom  does  that  timber  belong? 

Amid  the  indescribable  geologic  turmoil  gone  thru  by  our  mother 
Earth  in  past  ages,  valuable  mineral  deposits  were  made  here  and 
there-  beneath  the  surface.  Do  they  belong  to  the  accidental  dis- 
coverer, to  the  local  community,  or  to  the  general  government? 

While  these  are  large  questions,  in  which  the  community  enters 
as  a  factor  in  giving  value,  of  recent  years  the  battle  has  waged 
chiefly  in  reference  to  values  created  entirely  by  the'  community. 
Perhaps  this  is  because  of  the  unprecedented  creation  and  develop- 
ment of  these  values  during  recent  years,  to  the  extent  that,  in 
several  instances,  communal  land  values  in  a  single  large  city  now 
exceed  the  agricultural  value  of  all  the  land  in  an  average  size 
state. 

Instead  of  treating  the  question  under  separate  heads,  as  sug- 
gested by  the  above,  I  have  adopted  the  historical  method  in  plan- 


SAMPLE  PAGES  OF— 

"  THE  LAND  QUESTION  FROM  VARIOUS  POINTS  OF  VIEW.- 

HISTORY    OF    LAND    TENURES,  27 

in  times  of  war  the  jeomamy  tenants  protected  and  defended 
their  lords,  and  also  their  lands,  in  which  they  had  a  common 
interest.  There  were  land  and  homes  and  work  for  all,  and 
beggars  and  tramps  were  unknown.  This  happy  condition 
continued  for  centuries.  The  fatal  change  came  in  the  six- 
teenth century  under  the  reign  of  Henry  VIII,  that  human 
monster  who  "never  spared  man  in  his  anger  nor  woman  in 
his  lust."  For  the  double  purpose  of  taking  revenge  upon  the 
church  for  refusing  him  a  divorce  from  his  faithful  wife 
Catharine,  and  of  satisfying  his  unprecedented  extravagance 
and  maintaining  in  grand  style  his  "fifty  palaces,"  be  con- 
fiscated the  lands  of  the  church,  comprising  as  they  did  about 
one-third  of  the  land  of  the  kingdom,  and  upon  which  there 
lived,  almost  rent  free,  thousands  of  industrious,  self-support- 
ing families.  These  lands  were  sold  by  the  king  in  large 
tracts,  at  very  low  prices,  principally  to  merchants  and 
other  capitalists  living  in  the  towns  and  cities,  who  bought  the 
land  as  an  investment,  and  they  immediately  began  to  enor- 
mously increase  the  rents.  The  feudal  lords  soon  saw  what 
profits  the  merchants  were  making  out  of  their  lands,  and 
they  too  caught  the  commercial  spirit  and  began  to  raise  the 
rents  of  their  lands,  and  they  also  began  to  buy  and  maintain 
large  residences  in  the  towns  and  cities  and  to  live  in  grand 
style.  All  this  made  it  necessary  for  them  to  extort  still 
highei*  rents  from  their  tenants.  In  the  same  century,  under 
Edward  VI,  the  guild  lands  were  confiscated  and  sold  to  grasp- 
ing landlords.  The  public  commons  and  pasture  lands  were 
then  eagerly  seized  and  encl(^ed  by  the  adjoining  landowners 
as  soon  as  it  was  discovered  that  they  too  might  be  put  to  com- 
mercial uses.  In  this  way  all  of  the  lands  of  the  kingdom  were 
in  a  marvelously  short  time  changed  from  a  public  trust  to  a 
private  monopoly,  and  the  people  were  suddenly  placed  at  the 
mercy  of  mea'cenaiy  absentee  landlords.  Because  of  the  high 
price  of  wool  and  meat  the  landlords  discovered  that  they 
could  make  more  by  converting  their  lands  into  sheep  and 
cattle  pastures  than  by  renting  them  to  the  small  farmers,  so 
the  latter  by  thousands  were  turned  ooit  of  their  homes  into  the 
highways,  and  as  the  great  preacher  Hugh  Latimer  said  from 


SAMPLE  PAGES  OF— 

"THE  LAUD  QUE'STION  FROM  VARIOUS  POINTS  OF  VIEW.' 

DISTRIBUTION  OF  LAND.  41 

knoAVs  the  enormous  increasing  power  of  accumulated  capital. 
As  these  large  estates  increase  in  size  and  number,  the  greater 
will  be  their  power  to  absorb  the  smaller  farms  adjoining  them. 
Our  farms  of  500  acres  and  over  would  now  cover  an  area' 
more  than  five  times  the  size  of  the  great  state  of  Indiana,  with 
its  two  millions  and  over  inhabitants.  That  is  to  say,  about 
115,940  men  own  a  vast  area  of  about  126  millions  of  acres 
of  the  best  farming  land  in  the  world,  and  which  should  be 
divided  among  ten  millions  of  people,  and  which  is  capable 
of  giving  support,  self-employment,  homes  and  happiness  to 
that  vast  number  of  people.  And  when  we  consider  the 
further  awful  fact  that  about  one-half  of  this  vast  expanse 
of  126  millions  of  acres  of  land,  which  within  the  memory  of 
men  still  living  was  parcelled  out  by  our  government  to  our 
citizens  in  small  farms,  is  now  at  this  early  day  absorbed  by 
and  owned  by  31,546  men  and  corporations,  the  situation  is 
still  more  alarming.  In  one  of  his  speeches  Daniel  Webster 
once  said :  "A  free  government  cannot  long  endure  where  the 
tendency  of  laws  is  to  concentrate  tlie  wealth  of  the  country 
in  the  hands  of  a  few,  and  to  render  the  masses  poor  and  de- 
pendent." In  the  light  of  the  above  facts  can  there  be  any 
doubt  as  to  the  tendency  of  our  present  land  laws,  and  that 
radical  changes  in  our  land  laws  are  absolutely  necessary? 

The  extent  of  many  of  these  large  estates  is  simply  astound- 
ing, as  is  shown  by  the  following  list  of  a  very  few  of  the 
large  land  owners  of  this  country: 

NAMES.  NO.    OF    ACRKS. 

Col.  D.  C.  Murphy  4,068,000 

Texas  State  Fund  Ass'n  (owned  by  4  men) 3,000,000 

The  Standard  Oil  Company 1,000,000 

John  W.  Dwig-ht — a  farmer  in  N.  Dakota   (nearly 

as  large  as  Ehode  Island) 704,000 

Ex-Senator  Dojsey 500,000 

E.  C.  Sprague 500,000 

Miller  and  Lux  (San  Francisco) 450,000 

Mr.  McLaughlin  of  California 400,000 

William  A.  Chapman   350,000 

New  York  syndicate 300,000 

Surveyor-Gen.  Beals   300,000 

Texas  Land  and  Cattle  Company 240,000 

Bixby,  Flint  &  Co.  ... ; 200,000 


SAMPLE  PAGES  OF— 

"  7  HE  LAND  QUESTION  FROM  VARIOUS  POINTS  OF  VIEW 

78  DISTKIBUTIOX  OF  PUBLIC  LANDS. 

of  the  General  Land  Office  at  Washington,  or  to  the  officers 
of  the  district  in  which  the  land  lies.  To  settle  this  question, 
Congress,  on  May  14,  1880  (21  Stat.,  140),  passed  an  act,  the 
first  section  of  which  is  as  follows: 

"When  a  pre-emption,  homestead,  or  timber-culture  claimant 
shall  file  in  the  local  land  office  a  written  relinquishment  of  his 
claim,  the  land  covered  by  such  claim  shall  be  held  as  open  to  settle- 
ment arid  entry  without  further  action  on  the  part  of  the  Commis- 
sioner of  the  General  Land  Office." 

Observe  how  this  act  has  been  made  use  of  to  defraud  hon- 
est seekei's  for  homes. 

An  unscrupulous  lawyer — for  convenience  of  reference  let 
us  call  him  "Ketchem" — locates  himself  in  a  region  where 
there  is  government  land.  He  makes  use  of  everybody  in  tlie 
village  or  county,  or  elsewhere,  with  a  sufficiently  elastic  con- 
science. Such  confederate  may  be  less  than  twenty-one  years 
of  age,  or  a  foreigner,  or  a  resident  of  anywhere  or  nowhere: 
he  does  not  have  to  SM^ear  to  his  qualifications;  all  he  is  wanted 
for  is  to  sign  his  name  perfunctorily  to  a  pre-emption  declara- 
tory statement,  which  (when  signed)  the  lawyer  sends  to  the 
local  office.  The  local  officers  mark,  upon  their  plats  and 
record  books  that  the  tract  described  in  the  application  re- 
ceived has  been  "filed  upon"  by  the  party  named  therein. 
This  is  the  first  step  in  the  fraud — to  cover  as  many  tracts  as 
possible  with  "bogus"  pre-emption  filings.  One  lawyer  in 
South  Dakota  filed  in  the  local  office  applications  in  the  names 
of  his  youngest  son  (aged  four  months),  of  his  deceased  father 
and  grandfather,  of  his  wife  under  her  maiden  name,  and 
several  of  his  and  her  down-east  relatives,  and  of  his  saddle 
mare.  The  local  officers  had  no  means  of  knowing  that 
"ISTancy  Ketchem"  had  four  legs.  This  plan  of  using  ficti- 
tious names,  however,  can  not  be  adopted  unless  some  notary 
public  is  taken  into  the  "ring,"  and  then  the  profits  of  the 
transaction  must  be  divided  among  three  instead  of  two;  so 
it  is  generally  better  to  have  a  "live"  human  confederate,  and 
hoodwinik  the  notary  public  as  well  as  the  local  officers. 

Mr.  Strange  (let  us  call  him)  comes  into  that  region  from 
the  east— an  honest  man,  honestly  seeking-  for  a  quarter  sec- 


SAKPLE  PAGES  OF— 

"  THE  LANO  Q'JESTJON  FROM  VARIOUS  POINTS  OF  jllE^. 

170  FORESTRY. 

Ninth. — Forests  are  also  desirable  from  an  esthetic  point 
of  view.     Tliey  add  greatly  to  the  beauty  of  a  country. 

The  destruction  of  forests  by  nations  which  were  ignorant 
of  the  foregoing  facts  has  fi-^eqiiently resulted incon verting  fer- 
tile countries  into  treeless,  sandy,  gullied,  uninhabitable  des-- 
erts.  Assyria  and  Persia  have  especially  suffered  in  this  re- 
gard, and  vast  scopes  of  territory  in  other  countries  of  Asia 
have  been  converted  into  deserts  by  the  destruction  of  forests. 
The  terrible  famines  in  India  and  China  are  the  result  of 
drouth  caused  by  the  destruction  of  their  forests.  Shall  we 
profit  by  their  experience? 

In  Europe,  Italy  has  suffered  most  from  this  cause.  Many 
portions  of  that  country  have  been  almost  ruined  by  the  wan- 
ton destruction  of  forests.  Early  in  this  century,  France 
was  fast  approaching  the  danger  line,  but  by  active  and  vig- 
orous measures  she  has  partially  repaired  the  damage  done. 
All  of  Europe  and  Asia  is  aroused  to  the  necessity  of  forest 
preservation  and  restoration. 

While  the  eountri«es  in  Europe  and  Asia  have  been  talcing 
vigorous  measures  to  preserve  and  restore  their  forests,  we 
in  the  United  States,  imtil  quite  recently,  have  been  doing 
our  utmost  to  destroy  our  forests.  It  is  estimated  that  from 
1860  to  1878  we  destroyed  twelve  millions  of  acres  of  forests 
in  ord^r  to  bring  the  land  under  cultivation,  and  this  is  but 
a  sample  of  our  wanton  destruction  of  forests  for  many  pre- 
"^dous  decades,  as  well  as  since  then.  Until  late  years  we  have 
also  carelessly  and  criminally  allowed  our  forests  to  be  burned 
at  the  rate  of  millions  of  acres  every  year  by  hunters  and 
campers. 

The  injurious  effect  of  this  policy  has  been  seriously  ex- 
perienced in  our  Eastern  states,  in  the  change  of  climate, 
barrenuess  of  soil  and  diminution  of  streams  that  always  re- 
sult from  a  destruction  of  the  forests  of  a  country.  Many 
of  the  former  ever-living  small  streams  are  now  dry  during 
a  part  of  the  year.  Streams  that  were  formerly  navigable 
are  now  unnavigable.  As  already  stated,  even  the  water  line 
of  the  majestic  Hudson  has  been  lowered  nearly  five  feet. 
In  the  Mississippi  valley  the  tremendous  and  formerly  un- 


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GAYLORO 

PRINTED  IN  U.S.A. 

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